Verastem's Q2 Earnings Exceed Expectations on Strong Ovarian Cancer Drug Sales

Verastem shares surged 22% after reporting better-than-expected Q2 2025 financials, driven by strong commercial launch of its newly approved ovarian cancer therapy, Avmapki Fakzynja Co-pack. The biotech company's financial results exceeded expectations, boosting investor confidence in the company's oncology-focused business.

Verastem (NASDAQ: VSTM) shares added approximately 22% on Friday following the release of its second-quarter (Q2) 2025 financial results, which exceeded market expectations. The biotech company's strong commercial launch of its newly approved ovarian cancer therapy, Avmapki Fakzynja Co-pack, was a significant driver behind the positive performance [1].

The company reported net product revenue of $2.1 million in the first six weeks of Avmapki Fakzynja Co-pack's launch, which expanded its Q1 topline by $2.1 million, surpassing consensus estimates by $1.0 million. However, Verastem also reported a non-GAAP net loss that grew by ~151% year-over-year (YoY) to $25.9 million, still beating consensus estimates by $0.11 per share. The company's selling, general, and administrative (SG&A) expenses more than doubled to $20.7 million, primarily due to costs associated with the product launch and other expenditures [1].

CEO Dan Paterson commented on the positive launch momentum and the company's focus for the second half of the year, which includes continuing to build on the launch momentum, advancing clinical trials, and enrolling patients in various cohorts [2]. Verastem's cash position stood at $164.3 million at the end of Q2 2025, with expected cash runway into the second half of 2026 [2].

The company's strong performance was further bolstered by several key milestones, including the FDA approval of Avmapki Fakzynja Co-pack and the initiation of a Phase 1/2a trial for VS-7375, an oral KRAS G12D (ON/OFF) inhibitor in advanced solid tumors. Additionally, Verastem received Orphan Drug Designation for Avutometinib plus Defactinib for the treatment of ovarian cancer from the European Commission [2].

Investors remain optimistic about Verastem's pipeline and the potential for future growth in its oncology-focused business. The company's ability to deliver strong commercial results and meet or exceed market expectations has boosted investor confidence and driven the recent share price appreciation.

References:
[1] https://seekingalpha.com/news/4482825-verastem-stock-climbs-q2-beat
[2] https://investor.verastem.com/news-releases/news-release-details/verastem-oncology-reports-second-quarter-2025-financial-results