Verastem, Inc. is an emerging biopharmaceutical company dedicated to the creation and commercialization of innovative therapeutic agents for cancer treatment. A primary ...
Verastem, Inc. (Nasdaq: VSTM) is a biopharmaceutical company headquartered in Needham, Massachusetts, founded in 2010. The company is dedicated to developing and commercializing novel small molecule drugs that inhibit critical signaling pathways in cancer, with a focus on the RAS/MAPK pathway. Their lead product candidate, VS-6766 (also known as avutometinib), ...Verastem, Inc. (Nasdaq: VSTM) is a biopharmaceutical company headquartered in Needham, Massachusetts, founded in 2010. The company is dedicated to developing and commercializing novel small molecule drugs that inhibit critical signaling pathways in cancer, with a focus on the RAS/MAPK pathway. Their lead product candidate, VS-6766 (also known as avutometinib), is a dual RAF/MEK inhibitor with a unique 'clamp' mechanism that blocks MEK kinase activity and prevents RAF phosphorylation of MEK. This drug is being evaluated in clinical trials for recurrent low-grade serous ovarian cancer (LGSOC) and non-small cell lung cancer (NSCLC) with KRAS and BRAF mutations. In combination with defactinib, a FAK inhibitor, VS-6766 is being studied in the RAMP 201 and RAMP 202 trials. The company has strategic partnerships with Chugai Pharmaceutical for development and commercialization rights to VS-6766, and with Pfizer for FAK inhibitors. Additionally, a clinical collaboration with Amgen is exploring VS-6766 in combination with LUMAKRAS™ for KRAS G12C-mutant cancers. Financially, Verastem has a market cap of around $592 million, with a recent stock price of $6.74. The company has negative profitability metrics, with an operating margin of -182.6% and a net margin of -231.6%, reflecting its development-stage status. They have a cash position that supports ongoing operations, with a current ratio of 2.255. Leadership is headed by CEO Dan Paterson, who was appointed in 2023. The company employs 102 full-time staff. With a focus on rare cancers, Verastem recently received FDA approval for a treatment for KRAS-mutant recurrent LGSOC, marking a significant milestone. The company continues to advance its pipeline and pursue innovative approaches to improve patient outcomes.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$30.9M
+209.1%
+114.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-209.5M
-60.3%
+5.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+82.9%
-17.1%
+7.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-550.3%
+52.1%
+66.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-677.6%
+48.1%
+55.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-137.5M
-31.2%
+15.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-444.8%
+57.6%
+60.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
134.4%
+191.9%
+61.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.09x
+0.8%
-25.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon and welcome to Verastem Oncology's Second Quarter 2026 Earnings Conference Call. My name is Liviana and I'll be your call operator today. Please note this event is being recorded. [Operator Instructions] I will now turn the call over to Julissa Viana, Senior Vice President, Corporate Communications, Investor Relations and Patient Advocacy at Verastem Oncology. Please go ahead.
Julissa Viana: Thank you, operator. Welcome, everyone, and thank you for joining us today to discuss Verastem's second quarter 2026 financial results and recent business updates. This afternoon we issued a press release detailing these results along with a slide presentation that we will reference during our call today. Both are available on the investor relations section of our website. Before we begin, let me point out that we'll be making forward-looking statements that are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties, and actual results may differ materially. We encourage you to consult the risk factors discussed in our SEC filings for additional detail. Additionally, today we'll be discussing certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are provided in the press release we issued today. Joining me on today's call to deliver prepared remarks and take your questions are Dan Paterson, President and Chief Executive Officer; Dan Lyons, Chief Commercial Officer; and Dan Calkins, Chief Financial Officer. Dr. Michael Kauffman will be joining us for the Q&A portion of the call. I will now turn the call over to Dan.
Daniel Paterson: Thank you, Julissa. Good afternoon and thank you for joining our call today. We delivered a strong second quarter with meaningful progress across both our commercial business and pipeline. For the quarter, we generated net product revenues of $25.1 million, reflecting continued execution of our commercial strategy, putting us back on track and reinforcing the long-term opportunity for AVMAPKI FAKZYNJA CO-PACK. We also strengthened the balance sheet with a non-dilutive royalty financing agreement with Oberland Capital to secure up to $75 million in funding, of which we expect to draw $50 million at closing. Combined with a $15 million milestone payment from Secura Bio for a COPIKTRA sales milestone, the incremental $90 million in non-dilutive funding strengthens our balance sheet and allows us to get beyond key data readouts, advance partnership discussions, and preserves strategic flexibility as we evaluate future financing opportunities. Also, as we shared previously, we continue to expect the LGSOC business will become self-sustaining by the end of 2026, meaning that commercial revenue will support both the ongoing commercial organization and the existing avutometinib and defactinib development franchise. As Dan Lyons will discuss, the commercialization of the CO-PACK is progressing well, and we're …
