Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Verastem (NASDAQ:VSTM), which has delivered an impressive 211% return over the past year, maintained its Overweight rating from Cantor Fitzgerald on Monday, as analyst Eric Schmidt expressed enthusiasm for the company’s dual-pronged strategy. The stock currently trades near $9.22, with analysts setting targets between $13 and $20.
The firm highlighted Verastem’s avutometinib/defactinib co-pack, which is launching into the low-grade serous ovarian cancer (LGSOC) market. Cantor Fitzgerald believes this drug combination has potential to generate more than $500 million in peak sales. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a current ratio of 3.46x, providing runway for this commercial launch.
Cantor Fitzgerald also noted Verastem’s second key program, the KRAS G12D inhibitor VS-7375, which is being developed in partnership with GenFleet in China.
The analyst acknowledged that VS-7375 faces competition in the market for pan- and mutant-selective KRAS inhibitors, specifically mentioning daraxonrasib and zoldonrasib from Revolution Medicines.
Cantor Fitzgerald’s assessment followed a dinner meeting with Verastem, after which the firm reported "a high level of enthusiasm for both of the company’s programs."
In other recent news, Verastem Oncology has announced significant developments regarding its KRAS G12D inhibitor, with a 41% overall response rate observed in heavily pre-treated pancreatic cancer patients. This data, presented at the European Society for Medical Oncology Congress 2025, highlighted a disease control rate of 96.7% among the patients involved. In parallel, Verastem’s partner, GenFleet Therapeutics, reported a 68.8% response rate in non-small cell lung cancer patients at the recommended Phase 2 dose of the same inhibitor, known as GFH375 in China and VS-7375 elsewhere. This promising data was shared ahead of the IASLC 2025 World Conference on Lung Cancer. Analyst firm Mizuho has adjusted its price target for Verastem to $14, citing dilution from recent financing, but maintained an Outperform rating. Meanwhile, BTIG reiterated its Buy rating for Verastem, reflecting optimism following the improved cancer drug data. These updates underscore Verastem’s ongoing efforts in advancing cancer treatment options.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.