Verastem priced a public offering of 8,543,794 shares of common stock at $7.25 per share, raising approximately $90 million. The offering also includes pre‑funded warrants to purchase up to 3,870,000 shares of common stock at $7.2499 per warrant, and an underwriters’ option to buy an additional 1,862,069 shares.
The proceeds will be directed toward scaling commercial activities for the company’s first FDA‑approved product, AVMAPKI FAKZYNJA CO‑PACK, which treats KRAS‑mutated recurrent low‑grade serous ovarian cancer, as well as continued clinical research, development of the oral KRAS G12D inhibitor VS‑7375, and working capital needs. The capital infusion is intended to extend the company’s runway into the second half of 2026 and support the transition from a development‑stage to a commercial‑stage company.
Verastem’s recent financial results show a net loss of $39.4 million, or $0.54 per share, for the third quarter of 2025, slightly better than the consensus estimate of $0.57 per share. The modest beat reflects disciplined cost management amid a $132.65 million negative free‑cash‑flow figure for the year, underscoring the urgency of the new funding.
The company’s revenue for the quarter was $11.2 million, up 25.7% from the prior year, driven by increased sales of AVMAPKI and early pipeline activity. However, the company continues to incur significant cash burn, with a negative free‑cash‑flow of $132.65 million in the last twelve months, highlighting the need for additional capital to sustain growth.
Management emphasized that the offering will enable Verastem to accelerate commercialization of AVMAPKI, expand its sales and marketing footprint, and invest in the VS‑7375 program, which targets KRAS G12D‑driven solid tumors. CEO Dan Paterson noted that the company is “poised for a transformative year of growth as we evolve into a commercial‑stage company while advancing several clinical programs.”
Analysts have maintained a “Strong Buy” consensus on the stock, citing the company’s promising pipeline and the sizable market opportunity in the RAS/MAPK oncology space, despite the company’s high cash burn and distressed Altman Z‑Score. The market reaction to the offering was tempered by the discount at which the shares were priced relative to the prior close, reflecting concerns about dilution.
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