Tag Archives: VSTM

Verastem (VSTM) Shares Up 5.7%

Shares of Verastem (NASDAQ:VSTM) shot up 5.7% during mid-day trading on Friday . The stock traded as high as $5.05 and last traded at $5.02. 2,389,232 shares were traded during mid-day trading, an increase of 156% from the average session volume of 932,884 shares. The stock had previously closed at $4.75.

Several research firms have recently issued reports on VSTM. BidaskClub upgraded shares of Verastem from a “hold” rating to a “buy” rating in a research note on Monday. HC Wainwright reiterated a “buy” rating and issued a $10.00 target price on shares of Verastem in a research note on Thursday, May 3rd. B. Riley set a $17.00 target price on shares of Verastem and gave the stock a “buy” rating in a research note on Thursday, May 10th. ValuEngine upgraded shares of Verastem from a “sell” rating to a “hold” rating in a research note on Saturday, May 12th. Finally, Cantor Fitzgerald set a $17.00 target price on shares of Verastem and gave the stock a “buy” rating in a research note on Wednesday, May 2nd. Three investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $11.25.

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The company has a current ratio of 4.45, a quick ratio of 4.45 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $264.19 million, a price-to-earnings ratio of -2.85 and a beta of 2.18.

Verastem (NASDAQ:VSTM) last issued its quarterly earnings results on Tuesday, May 8th. The biopharmaceutical company reported ($0.41) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.39) by ($0.02). analysts anticipate that Verastem will post -1.47 EPS for the current year.

Several large investors have recently modified their holdings of VSTM. Dimensional Fund Advisors LP boosted its holdings in shares of Verastem by 93.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 561,969 shares of the biopharmaceutical company’s stock worth $2,641,000 after buying an additional 272,141 shares during the last quarter. Omni Partners LLP purchased a new position in shares of Verastem in the 4th quarter worth about $205,000. Alambic Investment Management L.P. purchased a new position in shares of Verastem in the 4th quarter worth about $534,000. SeaCrest Wealth Management LLC purchased a new position in shares of Verastem in the 4th quarter worth about $108,000. Finally, Wells Fargo & Company MN boosted its holdings in shares of Verastem by 130.5% in the 4th quarter. Wells Fargo & Company MN now owns 45,987 shares of the biopharmaceutical company’s stock worth $141,000 after buying an additional 26,036 shares during the last quarter. 30.19% of the stock is currently owned by institutional investors.

Verastem Company Profile

Verastem, Inc, a biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer. Its programs target the focal adhesion kinase (FAK) and the phosphoinositide 3-kinase (PI3K) signaling pathways. The company's lead FAK inhibitor is defactinib, an orally available candidate for combination therapy with immuno-oncology agents and other anti-cancer compounds.

Your Daily Pharma Scoop: Biohaven Updates, MEIP Offering, Kite European Expansions

Analysis focus: BHVN

Biohaven Pharmaceuticals (NYSE:BHVN) is a CNS-focused company with a strong pipeline with multiple drug candidates in late stage trials. The company recently announced a number of updates for its pipeline. For its lead candidate, rimegepant from the CGRP receptor antagonist platform, the company will report initial results from a long-term safety study in Q4 2018. In Q4 2018, the company will also produce top-line results from a Phase 3 rimegepant Zydis ODT trial. In 2019, the company will submit an NDA for rimegepant, on the basis of positive topline data from its first two pivotal phase 3 trials. From BHV-3500, its other product candidate in this platform, there will be an IND and the start of a phase 1 trial for the acute treatment and prevention of migraine.

Its other platform is the Glutamate modulator platform, which has three candidates in various mid and early stage trials. The company will complete enrollment in a Phase 2 trial evaluating trigriluzole in OCD in 2018. There is also a phase 3 extension trial, for trigriluzole in spinocerebellar ataxia, which will report topline results by end-2018. The same drug candidate will begin a phase 2 trial in Alzheimer’s disease by Q2 2018. Most importantly, the company will submit an NDA to the FDA via the 505(b)(2) pathway for BHV-0223 in patients with ALS in the second half of 2018. This pathway helps a drug get quicker approval through a bioequivalence study, which, if successful, lets it use data from previous trials and accelerate the approval process.

BHVN is a $1+bn company with a decent cash runway and an excellent management team. The migraine market, its primary focus, has limited treatment options, and although a number of players are developing therapies in the space, opportunity exists for BHVN with their CGRP platform. More than one tenth of all Americans suffer from migraine, and this is a multi-billion dollar therapeutic space with few proper treatment options.

Stocks in News: Analysis of MEIP, GILD

MEI Pharma secures $75M capital raise

Discussion: MEI Pharma (NASDAQ:MEIP) is up on the news that it secured $75mn from institutional investors through a direct sale of common stock and warrants. As a subscriber of Total Pharma Tracker pointed out, Verastem (NASDAQ:VSTM) is down, on the same day, after raising money through a secondary offering. The difference is quite possibly because although dilutive, MEIPs fund raising comes from institutional investors which includes warrants at 1/2 of a share of common stock at $2.54, which indicates that smart money likes the company, specifically its lymphoma candidate MEI-401.

Kite Pharma continues buildout for cell therapy manufacture

Discussion: Gilead (NASDAQ:GILD) is quietly but quickly developing the infrastructure it needs to facilitate the process of CAR-T therapy in various geographies. It leased a 177K square-foot facility in the Netherlands for manufacturing cell therapies in Europe, and the plant, which will employ 300 people, will be fully operational in 2020. The Netherlands, being a transport hub for the entire Europe, will make it very easy to process and deliver CAR-T therapy, where, as we know, logistics is a key concern. The company has also developed R&D units in California and in Maryland.

In other news

Celyad (NASDAQ:CYAD) has announced a 1.8M-unit offering in the form of American Depositary Shares in the U.S., Canada and certain other non-European countries, and ordinary shares in Europe and certain other non-North American countries.

The FDA has approved expanded use of Gilead’s Truvada to adolscents; previously it was approved only as HIV pre-exposure prophylaxis for adults.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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