Verastem Reports Positive Cancer Trial Data and Raises $250 Million in Stock Offering
Verastem Oncology (VSTM) released encouraging early data from its ongoing Target-D 101 Phase 1/2 trial evaluating VS-7375, an experimental oral drug targeting KRAS G12D-mutated cancers. Among 22 previously treated pancreatic cancer patients receiving a 900 mg daily dose alone, 41% achieved confirmed tumor responses, with an 86% disease control rate. In non-small cell lung cancer, 43% of 23 patients receiving a 600 mg daily dose responded to treatment. Common treatment-related side effects included nausea, vomiting, and diarrhea.
To support ongoing clinical development, the biotech firm priced a public offering of about 30.94 million shares at $8 per share, alongside pre-funded warrants, to raise roughly $250 million before expenses. The $8 offering price reflects a 7.4% premium over Tuesday's close. The capital raise follows a cash balance of $136.4 million in cash, cash equivalents, and investments at the end of June.
Verastem also named Michael P. Bailey as its new president and chief executive officer starting Jan. 1, 2027, succeeding retiring CEO Daniel Paterson. Looking ahead, the company plans to initiate a Phase 3 study in pancreatic cancer by the end of 2026 while continuing additional studies in lung and colorectal cancers.
Key points
- Verastem Oncology reported positive early Phase 1/2 trial results for VS-7375 in pancreatic and lung cancers driven by KRAS G12D mutations.
- The company priced a $250 million public share offering at $8 per share to support drug development and general operations.
- Michael P. Bailey was named president and CEO effective Jan. 1, 2027, succeeding retiring chief executive Daniel Paterson.
- Verastem aims to launch a Phase 3 trial for pancreatic cancer patients by the end of 2026.
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How we writeDisclaimerQuestions and answers
What were the results of Verastem's cancer drug trial?
In a Phase 1/2 trial for VS-7375, 41% of pancreatic cancer patients and 43% of lung cancer patients achieved confirmed responses, with an 86% disease control rate in pancreatic cancer.
How much money is Verastem raising in its stock offering?
Verastem is raising approximately $250 million before expenses by offering around 30.94 million shares at $8 per share alongside pre-funded warrants.
Who is the new CEO of Verastem Oncology?
Michael P. Bailey will become president and CEO on Jan. 1, 2027, succeeding Daniel Paterson, who is retiring but staying on as a board adviser.