Verastem (NASDAQ:VSTM) surges 11.05% on speculation of potential AbbVie acquisition of Revolution Medicines.

Verastem (NASDAQ:VSTM) surged 11.05% in pre-market trading on January 8, 2026, as speculation over a potential $20 billion+ acquisition of Revolution Medicines by AbbVie ignited broader optimism in the oncology biotech sector. The unconfirmed report of AbbVie’s advanced talks to acquire Revolution Medicines—a clinical-stage precision oncology firm—sparked a market-wide rally, with Verastem’s shares reflecting heightened investor enthusiasm for sector consolidation and therapeutic innovation.

The surge followed a dramatic 28.63% intraday jump in Revolution Medicines’ stock, which triggered trading halts due to volatility. While AbbVie later denied the acquisition rumors, the speculative frenzy had already spilled over to peers, including Verastem, which saw its shares rise on expectations of renewed interest in RAS-targeted therapies and oncology M&A activity. Analysts noted that the move underscored the sector’s sensitivity to deal-related news, particularly as large pharma players seek to bolster their pipelines amid patent expirations and competitive pressures.

Despite the uncertainty surrounding the AbbVie-Revolution Medicines deal, the rally highlighted the sector’s strategic focus on precision oncology and high-growth pipelines. Verastem’s gain aligned with broader trends, as investors priced in the potential for follow-on transactions or partnerships in RAS-driven cancers. However, the lack of official confirmation from either company left the market vulnerable to rapid reversals, emphasizing the speculative nature of the trade. The J.P. Morgan Healthcare Conference in late January remains a key catalyst, offering clarity on the sector’s next steps.

In the absence of clear deal confirmation, technical traders have begun to closely monitor key indicators for potential directional cues. The J.P. Morgan Healthcare Conference remains the most immediate catalyst for sector-specific announcements or strategic realignments. Meanwhile, institutional investors are balancing short-term speculation with longer-term thematic bets on RAS-targeted oncology innovation and consolidation.