Verastem Stock Rises Nearly 8% on Strong Q4 & 2025 Preliminary Results

Verastem’s VSTM shares rallied nearly 8% following the release of preliminary sales numbers for the fourth quarter and full-year 2025.

VSTM’s top line currently comprises product revenues from Avmapki Fakzynja Co-pack, complemented by milestones and royalty revenues. The company markets Avmapki Fakzynja Co-pack following its FDA approval in May 2025. It is approved for the treatment of adults with KRAS-mutated recurrent low-grade serous ovarian cancer (LGSOC) who are on standard of care.

Q4 & FY2025 Preliminary Results

On an unaudited basis, Verastem expects preliminary Avmapki Fakzynja Co-pack net product revenues of approximately $17.5 million and approximately $30.9 million for the fourth quarter of 2025 and full-year 2025, respectively, reflecting the U.S. launch in May after FDA approval.

All outstanding cash warrants were exercised by Jan. 25, 2026, raising $29.4 million.

Verastem ended 2025 with approximately $205 million in cash and investments on a pro-forma basis. The company expects its cash runway to last into the first half of 2027.

Based on the strong sales growth of Avmapki Fakzynja Co-pack, Verastem expects the LGSOC commercial launch and development program to be self-sustaining by the second half of 2026.

Over the past year, VSTM’s shares have surged 11.4% compared with the industry’s 32.7% rise.

2026 Outlook and Pipeline Updates

Verastem’s 2026 strategy centers on maximizing value from the commercial launch of the Avmapki Fakzynja Co-pack while advancing a differentiated pipeline focused on RAS/MAPK pathway-driven cancers.

Verastem is evaluating Avmapki Fakzynja Co-pack in the fully enrolled phase III RAMP 301 study for the treatment of adults with or without KRAS-mutated recurrent LGSOC. Top-line data is expected in mid-2027.

Apart from RAMP 301, the company is also evaluating the combination drug in the mid-stage RAMP201J study in Japan. It announced updated data, which showed a 38% overall response rate, including 57% in KRAS-mutated patients, along with strong disease control and a favorable safety profile.

Another pipeline candidate, VS-7375, is being evaluated in an international phase I/II study in patients with advanced solid tumors, including colorectal cancer (CRC), pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC), for which expansion cohorts are ongoing.

The company plans to report interim data from the phase I/II study in the first half of 2026.

VSTM plans to select the recommended phase II dose in combination with Erbitux (cetuximab) and initiate the expansion of the CRCcombination in the first half of 2026.  

Verastem expects to complete enrollment across monotherapy and combination cohorts in mid-2026 and advance PDAC and NSCLC combination studies in the second half of the year.

Additionally, VSTM is evaluating avutometinib plus defactinib in the ongoing RAMP 205 study in combination with standard-of-care chemotherapy for patients with metastatic PDAC. 

The company plans to report updated data on the safety and efficacy of RAMP 205 expansion cohort, with at least six months of follow-up on all patients, in the second quarter of 2026.

Verastem’s Zacks Rank & Stocks to Consider

VSTM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Assertio Holdings ASRT, Alkermes ALKS and Castle Biosciences CSTL, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Assertio’s 2026 loss per share have narrowed from 30 cents to 28 cents. ASRT shares have declined 2.2% over the past year.

Assertio’s earnings beat estimates in one quarter and missed in the remaining three quarters, with the average negative surprise being 35.21%.

Over the past 60 days, estimates for Alkermes’ 2026 earnings per share have increased from $1.54 to $1.91. ALKS shares have risen 8.7% over the past year.

Alkermes’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average earnings surprise being 4.58%.

Over the past 60 days, estimates for Castle Biosciences’ 2026 loss per share have narrowed from $1.06 to 50 cents. CSTL shares have risen 25.6% over the past year.

Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 66.11%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research