Truist Sees 350% Upside On This Cancer-Focused Biopharma Stock - Read Why

  • Truist has initiated coverage on Verastem Oncology Inc VSTM with a Buy rating and $6.00 price target, equivalent to approximately 350% upside.
  • Analyst Srikripa Devarakonda notes that trading at about 2-times cash, the stock is "undervalued" given its programs in two cancers.
  • Devarakonda adds that the Verastem base case is supported by a $470 million unadjusted U.S. opportunity in the ovarian cancer program, "early but strong" clinical data, and positive expert feedback.
  • Related: Verastem Shares Are Trading Higher On Encouraging Combo Therapy Data At ESMO Presentation.
  • Verastem's lead program VS-6766 inhibits RAF/MEK signaling pathway. 
  • The FDA granted Breakthrough Therapy designation for the combination of VS-6766, with defactinib, for recurrent low-grade serous ovarian cancer (LGSOC) regardless of KRAS status after one or more prior lines of therapy.
  • The Company is conducting Phase 2 registration-directed trials of VS-6766 alone and with defactinib in patients with recurrent LGSOC and recurrent KRAS G12V-mutant NSCLC.
  • Verastem Oncology has collaborated with Amgen Inc AMGN and Mirati Therapeutics Inc MRTX to evaluate Sotorasib and Adagrasib in combination with VS-6766.
  • Price Action: VSTM shares are up 22.30% at $1.37 during the market session on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: BiotechNewsPenny StocksHealth CarePrice TargetInitiationAnalyst RatingsMoversTrading IdeasGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!