UPDATE: Oppenheimer Initiates Verastem's Rating and PT

According to a research report published today, Oppenheimer has initiated Verastem Inc.'s

stock with an Outperform rating and $16 PT. Oppenheimer said in the report, “Using a unique discovery platform, VSTM is developing cancer stem cell (

)-targeted therapies. We believe there is growing evidence CSCs have a key role in tumor initiation/metastasis. VSTM expects to advance Wnt pathway inhibitor VS-507 and a FAK inhibitor (VS-4718/VS-5095) into ph.I by 1Q13. Based on preclinical results and compelling biological rationale, we believe these compounds have broad anticancer potential. VSTM first plans to pursue triple negative breast cancer (TNBC), which we believe is a substantially underserved, multi-billion dollar market. We believe VSTM is an attractive long-term investment and expect the stock to appreciate as clinical progress and high-profile scientific publications further underscore the importance of CSCs.” Verastem closed yesterday at $11.10.