Oppenheimer: Verastem Reports FY11 Results

In a research report published today by Oppenheimer, Verastem Inc. VSTM reported FY11 results yesterday. According to Oppenheimer, “The company remains on track to advance VS-507 (WNT pathway inhibitor) or either VS-4718/VS-5095 (FAK inhibitors) into the clinic in early '13. Based on high cancer stem cell (CSC) selectivity and clear evidence of the importance of the WNT pathway and FAK in several cancers, we believe these early-stage compounds have a good probability of long-term success. VSTM plans to initially triple negative breast cancer, which represents a significant unmet need and a blockbuster market for any one of these compounds. We believe VSTM is attractive on the long-term value of the company's CSC discovery platform, and expect share appreciation with pipeline progress and additional high profile scientific CSC publications.” Oppenheimer maintains its Outperform rating and $16 PT on Verastem, which closed yesterday at $11.00.