Verastem Receives Buy Rating from BTIG with $20 Price Target

BTIG analyst Justin Zelin has reaffirmed a Buy rating on Verastem with a $20 price target, citing the company's potential in the healthcare sector. Verastem has a Strong Buy consensus and a $16 price target consensus, with an average volume of 2.61M. However, corporate insider activity has been negative, with 44 insiders selling their shares in the past quarter.

Verastem Inc. (NASDAQ: VSTM) stock jumped 12.5% following the announcement of positive updated data for its KRAS G12D inhibitor in advanced non-small cell lung cancer patients. The biopharmaceutical company reported that its partner GenFleet Therapeutics’ Phase 1/2 study in China showed an objective response rate (ORR) of 68.8% at the recommended Phase 2 dose for GFH375, known as VS-7375 outside of China. Across all dose levels, the drug demonstrated a 57.7% ORR in patients with advanced non-small cell lung cancer harboring a KRAS G12D mutation.

The data, which will be presented at the IASLC 2025 World Conference on Lung Cancer in Barcelona, builds upon earlier results presented at ASCO. The study showed a disease control rate of 93.8% at the recommended Phase 2 dose of 600 mg once daily, and 88.5% across all dose levels in evaluable NSCLC patients.

"The significant increase in patients with advanced lung cancer demonstrating a response, 68.8% ORR at the recommended Phase 2 dose, and 57.7% ORR across all dose levels, is impressive and continues to support the development and potential of VS-7375 in advanced lung cancer and across other advanced KRAS G12D solid tumors," said Dan Paterson, president and chief executive officer of Verastem Oncology.

The study population included 142 patients, with 28 having advanced NSCLC. Most of these lung cancer patients (64.3%) had received at least two prior lines of systemic therapies, and nearly all (96.4%) had received anti-PD1/PD-L1 therapy.

Treatment-related adverse events were predominantly Grade 1 or 2 in severity, with the most common being diarrhea, vomiting, and nausea. No treatment-related deaths were reported in the study.

BTIG analyst Justin Zelin highlighted a "potentially class-leading" 69% ORR at the recommended Phase 2 dose (RP2D) of 600mg, while noting that the upcoming U.S. Phase 1/2a study will include antiemetic use and dosing in a fed state to mitigate gastrointestinal adverse events. With analyst targets ranging from $13 to $20, Verastem has received strong buy recommendations [2].

Verastem has a Strong Buy consensus and a $16 price target consensus, with an average volume of 2.61M. However, corporate insider activity has been negative, with 44 insiders selling their shares in the past quarter [3].

References:
[1] https://www.investing.com/news/stock-market-news/verastem-stock-soars-after-kras-inhibitor-shows-strong-lung-cancer-results-93CH-4190270
[2] https://www.investing.com/news/analyst-ratings/verastem-stock-rises-as-btig-reiterates-buy-rating-on-improved-cancer-drug-data-93CH-4191365
[3] https://www.gurufocus.com/news/3059717/verastem-oncology-announces-latebreaking-abstract-from-partner-genfleet-therapeutics-study-in-china-of-gfh375-vs7375-in-advanced-nonsmall-cell-lung-cancer-at-iaslc-2025-world-conference-on-lung