Verastem Announces Positive Data From Cancer Trial Conducted By Partner: Retail Turns Bullish

Shares of Verastem Oncology (VSTM) dropped 19% on Monday despite the company announcing positive updated data from the dose escalation phase of its trial for cancer therapy GFH375, conducted by its partner, GenFleet Therapeutics.

In a study in China, GFH375, also known as VS-7375 in the U.S., demonstrated an overall response rate of 52% in patients with pancreatic ductal adenocarcinoma and a response rate of 42% in those with non-small cell lung cancer, the company stated.

Verastem stated that data from its partner supports the advancement of its clinical program for VS-7375 in the U.S., which is slated to start in mid-2025.

The company is activating sites in the U.S. for VS-7375 to begin enrollment in the trial. The study has the potential to expand globally and will evaluate the safety and efficacy of VS-7375 in patients with advanced, KRAS G12D-mutant solid tumors.

The KRAS G12D mutation, a genetic alteration in the KRAS gene, is common in various cancers, particularly pancreatic cancer, colorectal cancer, and lung adenocarcinoma.

As part of the collaboration between Verastem and GenFleet, Verastem has development and commercialization rights for the cancer therapy outside the GenFleet markets of mainland China, Hong Kong, Macau, and Taiwan.

On Stocktwits, retail sentiment around Verastem rose from ‘bearish’ to ‘bullish’ territory over the past 24 hours while message volume rose from ‘normal’ to ‘high’ levels.

A Stocktwits user opined that the stock could be tanking owing to the Chinese partnership.

According to data from Koyfin, all of the nine analysts covering the stock rate it ‘Buy’ or higher. The stock has an average price target of $15.75, representing an upside of over 150%.

VSTM stock is down by 6% this year but up by about 55% over the past 12 months.

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