Verastem Extends Operating Runway Through First Half of 2028 After $250 Million Offering
Key Facts
Verastem said on November 5 that it expects its cash resources, proceeds from October financing and anticipated CO-PACK revenue to fund its operating plan through the first half of 2028. The plan includes starting 3 pivotal Phase 3 trials for pancreatic, colorectal and non-small cell lung cancers. The outlook gives the company a longer funding horizon to carry out its clinical program as it spends on developing treatments and expanding trials. In August, the company had expected its funds to last through the second half of 2027, based on its projected cash position, CO-PACK revenue and a future tranche of financing from Oberland. The extension announced in November followed the completion of an offering of shares and pre-funded warrants during October.
Verastem ended the third quarter of 2026 with $172.8 million in cash, cash equivalents and investments, according to its statement, while its pro forma cash balance was $422.8 million as of September 30 after accounting for the gross proceeds of the October offering. The company raised about $250 million in total from the offering, before discounts and expenses. The issuance included 30,937,500 common shares and pre-funded warrants to purchase up to 312,503 shares. These figures show that the extended funding horizon is based in part on capital raised through a securities issuance. The longer liquidity runway alone does not establish that dilution risks have declined, since the offering itself included shares and rights to buy additional shares.
Net revenue from AVMAPKI FAKZYNJA CO-PACK was about $24.0 million in the third quarter of 2026, compared with $11.2 million in the same period a year earlier. The company said growth in prescription refills drove revenue, partly offset by fewer new patient starts. It attributed the decline in new starts to seasonal factors, changes to the commercial team and evolving off-label use patterns. Product revenue is one element in the company's outlook for funding its plan through the first half of 2028. Net CO-PACK revenue was $25.1 million in the second quarter of 2026, compared with $2.1 million in the corresponding quarter of 2025, while total revenue at the time was $40.1 million versus $2.1 million.
On results, the company reported a GAAP net loss of $74.7 million, or $0.74 per share, in the third quarter of 2026, compared with a loss of $98.5 million, or $1.35 per share, a year earlier. Research and development expenses, meanwhile, rose to $68.8 million from $29.0 million in the third quarter of 2025, an increase of $39.8 million, or 137%. Verastem attributed the increase mainly to investigator fees, drug substance and product manufacturing, contract research organization costs and hiring. Higher research spending provides financial context for the company's plan, which includes starting 3 pivotal Phase 3 trials. In the market, VSTM shares closed at $9.38 on November 5, 2026.
The company's upcoming milestones include opening the Phase 3 TARGET-D 301 trial for first-line metastatic pancreatic cancer before the end of 2026. Verastem also expects to announce preliminary data from the TARGET-D 201 trial in second-line pancreatic cancer during the second quarter of 2027. In October, the company announced that the U.S. Food and Drug Administration had approved the design of the TARGET-D 301 trial. That month, it reported that VS-7375 at a dose of 900 mg once daily achieved a confirmed response rate of 50% in patients with second-line metastatic pancreatic cancer, and 41% in the second-line-and-later group. The company expects a decision from the Food and Drug Administration on its application for a new CO-PACK package by February 7, 2027, and also expects a preliminary readout on the primary endpoint in the RAMP 301 trial in mid-2027.