Verastem (VSTM) Shares Plunge 14.39% Amid FDA Approval Hopes

Verastem (VSTM) shares plummeted 14.39% today, marking the lowest level since December 2024, with an intraday decline of 15.34%.

One of the key factors driving the recent volatility in Verastem's stock price is the potential FDA approval for its ovarian cancer drug combination. Jefferies has initiated a Buy rating with a $15 target, highlighting the positive expectations surrounding regulatory advancement. This optimistic outlook suggests that investors are closely monitoring the progress of Verastem's drug through the regulatory process.

Additionally, Verastem has an upcoming FDA action date on June 30, 2025, for the priority review of avutometinib + defactinib for the treatment of patients with recurrent LGSOC. This deadline is crucial as it could significantly impact investor sentiment and stock price movements. The anticipation of this regulatory decision is likely contributing to the current market dynamics, with investors eagerly awaiting the outcome.