Pancreatic cancer drug shows 41% response rate in clinical trial

BOSTON - Verastem Oncology (NASDAQ:VSTM), a biotech company with a market capitalization of $567 million that has seen its stock surge over 211% in the past year, announced on Sunday that its KRAS G12D inhibitor demonstrated a 41% overall response rate in heavily pre-treated pancreatic cancer patients, according to data presented at the European Society for Medical Oncology Congress 2025 in Berlin. InvestingPro analysis shows the company maintains a strong liquidity position with its current ratio at 3.46x.

The drug, known as GFH375 in China and VS-7375 elsewhere, showed efficacy in 59 patients with pancreatic ductal adenocarcinoma who had received multiple prior treatments. The company reported that 91.5% of patients experienced tumor reduction, with a disease control rate of 96.7%. With analyst price targets ranging from $13 to $20, and the company’s next earnings report due on November 6, investors can access comprehensive analysis and 12 additional key insights through InvestingPro’s detailed research reports.

At the four-month mark, the overall survival rate was 92.2%, with median overall survival not yet reached after a median follow-up of 5.65 months. The median progression-free survival was 5.52 months, with 47% of patients still receiving treatment at the time of data assessment.

The safety profile appeared manageable, with a treatment discontinuation rate of just 3% due to treatment-related adverse events. The most common side effects included diarrhea, decreased neutrophil count, vomiting, and nausea.

KRAS G12D mutations occur in approximately 37% of pancreatic cancers and are associated with poorer outcomes compared to other KRAS mutations. Currently, no FDA-approved therapies specifically target KRAS G12D mutations.

Verastem is conducting a Phase 1/2a study of VS-7375 in the United States, evaluating the drug as both monotherapy and in combination treatments for various solid tumors with KRAS G12D mutations.

The data was presented by Verastem’s partner GenFleet Therapeutics, which is developing the drug in China, Hong Kong, Macau, and Taiwan, while Verastem holds rights for other global markets, according to the press release statement. While the company currently shows an overall Financial Health score of "Fair" on InvestingPro, it maintains more cash than debt on its balance sheet, positioning it well for continued development of its promising drug pipeline. Discover detailed valuation metrics and growth potential analysis in the comprehensive Pro Research Report, available for over 1,400 US stocks.

In other recent news, Verastem Inc. reported its financial results for the second quarter of 2025, noting a net product revenue of $2.1 million after launching a new cancer therapy. Despite this revenue, the company posted a non-GAAP adjusted net loss of $41.4 million. However, Verastem bolstered its financial standing with a $75 million private placement. In clinical developments, Verastem’s partner, GenFleet Therapeutics, announced positive data from a Phase 1/2 study of the KRAS G12D inhibitor, GFH375, which showed a 68.8% overall response rate in non-small cell lung cancer patients at the recommended Phase 2 dose. Across all dose levels, the drug demonstrated a 57.7% response rate. Additionally, BTIG reiterated its Buy rating on Verastem following improved clinical data, suggesting confidence in the company’s drug development. Meanwhile, Mizuho adjusted its price target for Verastem to $14.00 from $16.00, citing dilution from an April financing but maintained an Outperform rating, indicating optimism about Verastem’s future. These developments highlight Verastem’s ongoing efforts in cancer treatment advancements and financial maneuvers.

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