Shares of Verastem VSTM have surged 121% over the past three months, reflecting growing investor confidence in the company’s commercial prospects and oncology pipeline. The rally is driven primarily by accelerating uptake of ovarian cancer drug Avmapki Fakzynja Co-Pack and growing optimism surrounding VS-7375, Verastem’s next-generation KRAS-targeted therapy.
Avmapki Fakzynja Co-Pack: VSTM’s Key Growth Driver
A key reason behind the sharp increase in Verastem’s shares is the growing commercial contribution from Avmapki Fakzynja Co-Pack, a combination of avutometinib and defactinib. The FDA granted accelerated approval to the regimen in May 2025 for previously treated adults with KRAS-mutated recurrent low-grade serous ovarian cancer (LGSOC), a rare form of ovarian cancer. The product generated $25.1 million in net product revenues in the second quarter of 2026, up 1,095.2% year over year and 34.2% sequentially from $18.7 million in the first quarter of 2026. The strong growth reflects increasing patient starts and higher refill activity, indicating continued adoption of the therapy in its approved indication.
Verastem is conducting an international phase III RAMP 301 confirmatory study evaluating avutometinib plus defactinib versus standard chemotherapy or hormonal therapy in recurrent LGSOC patients, regardless of KRAS mutation status. Top-line data readout is expected in mid-2027. Positive data could help support conversion of accelerated approval into traditional approval in the United States. Meanwhile, Verastem continues to pursue regulatory strategies in Europe and Japan, potentially expanding the geographic reach and commercial opportunity for the regimen.
Year to date, shares of Verastem have risen 4.9% compared with the industry’s 10.2% growth.
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Pancreatic Cancer Data Expand Product’s Potential
Beyond the approved ovarian cancer indication, the avutometinib-defactinib combination is being evaluated in combination studies in first-line metastatic pancreatic cancer. In June, the company announced updated data from the phase Ib/IIa RAMP 205 study. It demonstrated that avutometinib plus defactinib, in combination with gemcitabine and nab-paclitaxel, generated a 52% confirmed objective response rate, while six-month overall survival and progression-free survival rates were 86% and 68%, respectively.
VS-7375 Emerges as the Major Pipeline Catalyst
Another key driver of Verastem’s recent stock rally is VS-7375, the company’s investigational, oral, selective KRAS G12D ON/OFF inhibitor. Verastem is advancing the therapy through three TARGET-D registration-directed phase II studies across pancreatic ductal adenocarcinoma (PDAC), non-small cell lung cancer (NSCLC) and colorectal cancer (CRC). The first patients were dosed in all three studies by July 2026, with enrollment expected to be completed by year-end.
In June, Verastem announced positive preliminary data from the ongoing phase I/II TARGET-D 101 dose-escalation and dose-expansion study evaluating VS-7375 in patients with advanced KRAS G12D-mutated solid tumors. The PDAC and NSCLC monotherapy cohorts and the CRC combination cohort demonstrated encouraging anti-tumor activity across multiple KRAS G12D-driven tumor types, with patient follow-up data continuing to mature in monotherapy and combination cohorts.
In July, Verastem entered into a partnership with Erasca to evaluate VS-7375 in combination with Erasca’s potential best-in-class oral pan-RAS molecular glue, ERAS-0015, expanding its use in KRAS G12D-driven solid tumors.
The company expects to report additional VS-7375 clinical data across pancreatic, lung and colorectal cancers in October 2026, which could be an important near-term catalyst for the stock. Verastem plans to meet with the FDA before year-end to discuss phase III pivotal designs in first-line metastatic PDAC, metastatic CRC and advanced NSCLC. Initial patient enrollment in these pivotal studies is targeted for the first half of 2027.
Verastem, Inc. Price and Consensus
Verastem, Inc. price-consensus-chart | Verastem, Inc. Quote
VSTM's Zacks Rank & Stocks to Consider
Verastem currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Precigen PGEN, currently sporting a Zacks Rank #1 (Strong Buy), and AC Immune ACIU and Aldeyra Therapeutics ALDX, carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Precigen’s 2026 bottom line have improved from a loss of 2 cents to earnings per share of 25 cents. Over the same period, earnings estimates for 2027 have risen from 25 cents to 86 cents. PGEN shares have increased 70.1% year to date.
Precigen’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 108.96%.
Over the past 60 days, estimates for AC Immune’s 2026 loss per share have narrowed from 84 cents to 60 cents. Over the same period, earnings estimates for 2027 remained unchanged at 17 cents. ACIU shares have lost 8.9% year to date.
AC Immune’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 33.25%.
Over the past 60 days, loss per share estimates for Aldeyra Therapeuticshave narrowed from 43 cents to 39 cents for 2026. Over the same period, estimates for 2027 loss per share have narrowed from 22 cents to 16 cents. ALDX shares have plunged 71.1% year to date.
Aldeyra Therapeutics’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 29.25%.
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