Interim analysis of Verastem in ovarian cancer builds excitement, says RBC

  • With the anticipation of a 2Q program update, Verastem Oncology VSTM announced that the results of its interim analysis for the RAMP 201 program for recurrent low-grade serous ovarian cancer (LGSOC) are continuing evaluation in both monotherapy and combination regimens.
  • With incremental updates from ASCO, repeated enthusiasm from KOL, and more updates coming in 2022 on a longer track, RBC Capital continues to like the VSTM setup.
  • The company expects to complete recruitment of all four trial cohorts in the second half of this year.
  • Related: Truist sees 350% upside in this cancer-focused biopharmaceutical stock – Read why.
  • He reiterated the rating for outperformance, speculative risk and a price target of $5.
  • RBC Capitals believes that VSTM has presented a different security profile thus far, which it finds reassuring.
  • Analysts noted that about 6% discontinued the trial due to treatment-related adverse events, compared to about 30% for the current standard of care for tyrosine kinase inhibitors.
  • However, the update has generated interest in the clarity of anticipated regulatory interactions, which are still pending and will guide dosing and trial design.
  • Price action: VSTM shares were up 6.15% at $1.30 during Tuesday’s last check trading session.