Dan Paterson, President and CEO of Verastem, Inc. (NASDAQ:VSTM), recently executed a series of stock transactions, according to a Form 4 filing with the Securities and Exchange Commission. On January 13, Paterson sold 8,568 shares of Verastem common stock at an average price of $5.24 per share, generating a total of $44,896. This sale was conducted to satisfy statutory withholding requirements related to the vesting of performance-based restricted stock units. The transaction comes as Verastem's stock has seen an 18% decline over the past week, though InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 3.23.
Earlier, on January 10, Paterson acquired 100,000 restricted stock units (RSUs) and an additional 25,000 RSUs at no cost. The 100,000 RSUs were granted under Verastem's Amended and Restated 2021 Equity Incentive Plan and are set to vest over the next three years. The 25,000 RSUs vested due to the achievement of specific performance criteria, following the acceptance of a new drug application by the U.S. Food and Drug Administration. According to InvestingPro analysis, Verastem appears slightly undervalued at current levels, with analyst price targets ranging from $7 to $20. Subscribers can access 12 additional ProTips and a comprehensive research report for deeper insights into Verastem's financial health and growth prospects.
In other recent news, Verastem Inc (NASDAQ:VSTM). has seen significant developments in its cancer treatment research and financial performance. The U.S. Food and Drug Administration (FDA) has accepted Verastem's New Drug Application for Avutometinib in combination with Defactinib, aimed at Recurrent KRAS Mutant Low-Grade Serous Ovarian Cancer. This treatment is now under priority review with a decision date set for mid-2025. Analysts from BTIG, H.C. Wainwright, Truist Securities, and Mizuho (NYSE:MFG) Securities have all maintained a Buy rating on Verastem, with BTIG raising its price target from $13.00 to $20.00.
These firms' confidence in Verastem is further bolstered by the company's financial performance. Verastem's second-quarter financial results exceeded expectations due to milestone payments, and the company announced plans to raise approximately $55 million through a public offering. Additionally, Mizuho Securities raised its price target on Verastem to $9.00, due to a revised valuation model for the company's leading cancer treatment, avutometinib plus defactinib, projecting peak year sales for the treatment at approximately $750 million, expected to be reached in 2029.
Finally, Verastem has been granted the FDA's Orphan Drug Designation for a drug combination aimed at treating pancreatic cancer and has disclosed promising interim results from its ongoing RAMP 205 trial. These recent developments underscore Verastem's continued efforts in the field of oncology.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.