Verastem (VSTM) Stock Rockets: BTIG Research Upgrades to Buy

VSTM stock is soaring 18% to $3.76 on high volume after Verastem Inc (NASDAQ:VSTM) announced the FDA granted Breakthrough Therapy designation for the combination of its investigational RAF/MEK inhibitor VS-6766, with defactinib, its FAK inhibitor, for the treatment of all patients with recurrent low-grade serous ovarian cancer (LGSOC) regardless of KRAS status after one or more prior lines of therapy, including platinum-based chemotherapy.

Verastem (VSTM) Stock Rockets: BTIG Research Upgrades to Buy

This morning, BTIG Research upgrades VSTM to Buy from Neutral and sets target price at $8. Analyst Robert Hazlett added, “The combination of Verastem’s RAF/MEK inhibitor VS-6766 with defactinib, its FAK inhibitor, just received FDA Breakthrough designation for all patients with recurrent low-grade serous ovarian cancer (LGSOC) regardless of KRAS status, after one or more prior lines of therapy, based largely on data from the Phase 1/2 FRAME Study, which most recently showed an ORR of 52% (11/21 response evaluable patients), 70% ORR with KRAS mutant tumors (7/10 response evaluable patients), and 44% ORR with KRAS wild-type tumors (4/9 response evaluable patients).

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With this early but meaningful regulatory validation de-risking the program, we upgrade VSTM shares to Buy.”

Jack Dawkins

Finance and Tech Contributor