- 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.
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