- The company's Q4 adjusted loss was $0.48 per share, while revenue of $17.5 million beat expectations of $16.84 million.
- Avmapki Fakzynja co-pack generated $17.5 million in Q4 revenue and $30.9 million in 2025 following FDA approval in May.
- The KRAS cancer drug VS-7375 cleared multiple dose levels with no safety issues.
Shares of Verastem, Inc. (VSTM) rose nearly 3% in after-hours trading on Wednesday, even after the cancer drug developer reported a quarterly earnings miss, as investors focused on early traction from its newly approved ovarian cancer therapy and a string of upcoming clinical milestones.
VSTM stock jumped over 2% in Wednesday’s regular session.
VSTM Q4 Review
The company reported an adjusted loss of $0.48 per share for the fourth quarter (Q4), slightly wider than analysts’ $0.50-per-share loss estimate, while revenue came in at $17.5 million, topping the $16.84 million consensus estimate.
Revenue in the quarter was driven by sales of Avmapki Fakzynja co-pack, a combination therapy approved by the U.S. Food and Drug Administration (FDA) in May 2025 for patients with KRAS-mutated recurrent low-grade serous ovarian cancer (LGSOC).
The therapy generated $17.5 million in net product revenue in Q4 and $30.9 million for the full year, marking the company’s first full year of commercial revenue from the drug following its accelerated approval.
“2025 was a transformative year for us, highlighted by the landmark FDA approval of Avmapki Fakzynja co-pack,” CEO Dan Paterson said, adding that the treatment is seeing “positive response across the LGSOC community with gynecologic and medical oncologists.”
Verastem ended 2025 with $205 million in cash, cash equivalents, and investments. The company said funds will support operations into the first half of 2027.
VS-7375 Cancer Drug Advances In Early Trials
Investors also focused on updates related to VS-7375, Verastem’s oral KRAS G12D inhibitor being developed for solid tumors.
The company said the therapy has cleared multiple dose levels in early studies with no dose-limiting toxicities, allowing dose escalation to continue to 1,200 mg once daily. A 600 mg daily dose in combination with Cetuximab, a form of cancer therapy, has also been cleared without safety concerns, with higher dose levels now being evaluated.
Following feedback from the FDA, Verastem said it plans to pursue Phase 2 registration-directed studies for VS-7375 in several cancer indications, including second-line pancreatic ductal adenocarcinoma, second or third-line non-small cell lung cancer, and later-line colorectal cancer in combination with Cetuximab.
Verastem Flags Multiple Pipeline Catalysts
Verastem outlined several upcoming milestones that could drive investor interest in the months ahead. The company expects to report early clinical data from the VS-7375-101 study in the first half of 2026 and select the recommended Phase 2 dose with Cetuximab, allowing it to begin a colorectal cancer combination expansion cohort later in the first half of 2026.
Enrollment in combination dose-escalation cohorts is expected to be completed by mid-2026, while monotherapy expansion cohorts are projected to finish enrollment in the second half of 2026. The company also plans to select the recommended Phase 2 dose and begin pancreatic and lung cancer combination expansion cohorts in the second half of the year.
Separately, Verastem said it plans to present updated data from the Ramp 201 trial of Avmapki Fakzynja at the Society of Gynecologic Oncology annual meeting in April, while longer-term development continues through the Ramp 301 Phase 3 trial, which is expected to report a topline primary endpoint readout in mid-2027.
The company is also preparing an update on the Ramp 205 study, which evaluates the therapy in combination with chemotherapy for first-line metastatic pancreatic cancer, with results expected in the second quarter of 2026.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for VSTM was ‘extremely bullish’ amid a 450% surge in 24-hour message volume.
One user said, “Phenomenal safety with VS-7375 and as a bonus, all resolved quickly!!”
Another user said they “like what I heard this is going $7 plus tomorrow”
VSTM stock has declined 25% year-to-date.
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