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Verastem Inc (VSTM)



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Upturn Advisory Summary
04/01/2025: VSTM (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit -74.26% | Avg. Invested days 31 | Today’s Advisory WEAK BUY |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 299.65M USD | Price to earnings Ratio - | 1Y Target Price 12.86 |
Price to earnings Ratio - | 1Y Target Price 12.86 | ||
Volume (30-day avg) 843170 | Beta 0.6 | 52 Weeks Range 2.10 - 13.52 | Updated Date 04/1/2025 |
52 Weeks Range 2.10 - 13.52 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -3.66 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-03-12 | When Before Market | Estimate -0.7367 | Actual -0.6 |
Profitability
Profit Margin - | Operating Margin (TTM) -1149.56% |
Management Effectiveness
Return on Assets (TTM) -57.19% | Return on Equity (TTM) -526.34% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 263900831 | Price to Sales(TTM) 29.97 |
Enterprise Value 263900831 | Price to Sales(TTM) 29.97 | ||
Enterprise Value to Revenue 26.39 | Enterprise Value to EBITDA -0.19 | Shares Outstanding 51486700 | Shares Floating 34121784 |
Shares Outstanding 51486700 | Shares Floating 34121784 | ||
Percent Insiders 1.01 | Percent Institutions 65.95 |
Analyst Ratings
Rating 4.75 | Target Price 11.86 | Buy 2 | Strong Buy 6 |
Buy 2 | Strong Buy 6 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Verastem Inc

Company Overview
History and Background
Verastem, Inc. is a biopharmaceutical company focused on developing and commercializing medicines to improve the lives of cancer patients. It was founded in 2010 based on research from leading cancer centers. The company has evolved from initial research to commercializing its first drug, COPIKTRA.
Core Business Areas
- Oncology: Development and commercialization of therapies targeting cancer. Focus is on areas with high unmet medical need, particularly those with RAS pathway mutations.
Leadership and Structure
The leadership team includes Brian Stuglik (CEO), and Dan Rubin (CFO). The company has a standard corporate structure with departments for research, development, commercial operations, and administration.
Top Products and Market Share
Key Offerings
- COPIKTRA (duvelisib): COPIKTRA is an oral inhibitor of phosphoinositide 3-kinase (PI3K), with inhibitory activity against PI3K-alpha, PI3K-delta, and PI3K-gamma isoforms. It is approved for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) after at least two prior therapies, and for relapsed or refractory follicular lymphoma (FL) after at least two prior systemic therapies. Market share and sales data are variable and depend on market reporting. Competitors include PI3K inhibitors from companies like TG Therapeutics (UKONIQ) and other CLL/SLL therapies from companies like AbbVie (Venclexta).
Market Dynamics
Industry Overview
The oncology market is large and growing, driven by an aging population and advancements in cancer treatment. There is high competition and stringent regulatory requirements.
Positioning
Verastem is positioned as a company focused on developing and commercializing targeted cancer therapies. Their competitive advantage lies in COPIKTRA and potentially other investigational assets.
Total Addressable Market (TAM)
The TAM for cancer therapies is estimated to be in the hundreds of billions of dollars globally. Verastem is targeting specific segments within this large market.
Upturn SWOT Analysis
Strengths
- FDA-approved product (COPIKTRA)
- Focus on RAS pathway
- Experienced management team
- Targeting specific unmet medical needs
Weaknesses
- Limited product portfolio
- COPIKTRA market competition
- Small company size
- Reliance on single product for revenue
Opportunities
- Expansion of COPIKTRA indications
- Development of new therapies
- Partnerships and collaborations
- Acquisition opportunities
Threats
- Competition from larger pharmaceutical companies
- Regulatory hurdles
- Clinical trial failures
- Patent expirations
Competitors and Market Share
Key Competitors
- GTHX
- ABBV
- MRTX
- LLY
Competitive Landscape
Verastem faces competition from larger companies with greater resources and established market presence. Their competitive advantage is in its focused approach and novel therapies.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth is dependent on COPIKTRA sales and development of the rest of the pipeline.
Future Projections: Future growth is dependent on expanding COPIKTRA's label as well as the approval of other pipeline assets.
Recent Initiatives: Verastem is focused on expanding COPIKTRA usage and progressing its pipeline of investigational therapies.
Summary
Verastem is a biopharmaceutical company focused on oncology with an approved product and a pipeline of investigational therapies. The company faces strong competition in the oncology market, relying heavily on a single product for revenue. While they have growth opportunities through pipeline expansion and partnerships, regulatory hurdles and market competition pose significant challenges. The company has also recently faced challenges in securing funds, and may need to reduce R&D spend.
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Sources and Disclaimers
Data Sources:
- Company website
- SEC filings
- Analyst reports
- Industry publications
Disclaimers:
This analysis is based on publicly available information and does not constitute financial advice. Market conditions and company performance can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Verastem Inc
Exchange NASDAQ | Headquaters Needham, MA, United States | ||
IPO Launch date 2012-01-27 | President, CEO & Director Mr. Daniel W. Paterson | ||
Sector Healthcare | Industry Biotechnology | Full time employees 78 | Website https://www.verastem.com |
Full time employees 78 | Website https://www.verastem.com |
Verastem, Inc., a development-stage biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer in the United States. Its product candidates are Avutometinib, an orally available small molecule RAF/MEK clamp that inhibits the ras sarcoma RAF/MEK, ERK mitogen activated pathway kinase pathway which is involved in cell proliferation, migration, transformation, and survival of tumor cells; and Defactinib, an oral small molecule inhibitor of FAK and proline-rich tyrosine kinase for various solid tumors. The company is involved in clinical studies, including RAMP 301, a randomized global confirmatory trial to evaluate the combination of Avutometinib and Defactinib for the treatment of patients with recurrent low-grade serous ovarian cancer; RAMP 201, an adaptive two-part multicenter, parallel cohort, randomized open label trial to evaluate the efficacy and safety of Avutometinib and in combination with Defactinib; and FRAME, an investigation of Avutometinib and Defactinib in patients with KRAS mutant cancers and subsequent analyses; and RAMP 204 and 205. It has license agreements with Chugai Pharmaceutical Co., Ltd. for the development, commercialization, and manufacture of products containing Avutometinib; and Pfizer Inc. to research, develop, manufacture, and commercialize products containing Pfizer's inhibitors of FAK for therapeutic, diagnostic, and prophylactic uses in humans. In addition, it has a clinical collaboration agreement with Amgen, Inc. to evaluate the combination of Avutometinib with Amgen's KRAS-G12C inhibitor LUMAKRAS which in Phase 1/2 trial entitled RAMP 203; and a discovery and development collaboration with GenFleet Therapeutics to advance new programs targeting RAS pathway-driven cancers. Verastem, Inc. was incorporated in 2010 and is headquartered in Needham, Massachusetts.
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