Verastem Shares Climb on Clinical Trial Results and $250 Million Offering

The company’s trial of VS-7375 showed robust clinical activity with a favorable safety profile across a range of cancers, including metastatic pancreatic ductal adenocarcinoma, colorectal cancer, and non-small cell lung cancer. Michael Kauffman, president of development, noted that the results support the potential for the drug to become a best-in-class therapy for these patients.

To fund the continued development of this candidate, Verastem priced an underwritten offering of nearly 31 million shares of common stock at $8 per share. The transaction, which includes pre-funded warrants for certain investors, is expected to close around Thursday. Following these developments, current CEO Daniel Paterson announced he will retire at the end of the year, with board member Michael Bailey slated to take over the top position.