Start here if you're new
what it is
Verastem is a small cancer drug company trying to turn a thin $10 million revenue base into a real business.
how it gets paid
Last year Verastem made $10M in revenue. legacy collaboration revenue was the main engine at $4.0M, or 40% of sales.
what just happened
Revenue was $10M, but the company is still posting deep losses and the reported EPS figures do not line up cleanly across sources.
At a glance
B balance sheet — gets the job done, barely
45/100 earnings predictability — expect surprises
-$3.66 fy2024 eps est
$10M fy2024 rev est
n/a operating margin
xvary composite: 48/100 — below average
What they do
Verastem is a small cancer drug company trying to turn a thin $10 million revenue base into a real business.
Its edge is focus. Verastem has 78 employees and is concentrating on the RAS/MAPK pathway instead of trying to be everywhere at once. Drug pipeline (experimental medicines in testing → possible future products → your whole thesis depends on them) is the business here, because current annual revenue is only $10 million.
How they make money
$10M
annual revenue
legacy collaboration revenue
$4.0M
research support revenue
$2.5M
license and milestone revenue
$2.0M
other development revenue
$1.0M
other revenue
$0.5M
The products that matter
approved oncology combination therapy
AVMAPKI FAKZYNJA CO-PACK
$30.9M · initial launch revenue
it generated $30.9M in net product revenue during the initial commercial launch period. right now, this is the business.
commercial proof
clinical-stage pipeline program
VS-7375
2026 · acceleration planned
management says 2026 is about accelerating its clinical path. if AVMAPKI is today's revenue, VS-7375 is the part of the valuation that still needs data.
binary upside
Key numbers
$10M
annual revenue
This is the whole 2024 revenue base, which is tiny next to a roughly $492 million market cap.
n/a
operating margin
Prior margin KPI failed sanity check — verify in filings. Operating margin → profit after operating costs → so the business is spending far more than it brings in.
$78M
long-term debt
Debt is 7.8 times annual revenue, which is a loud number for a company still proving its pipeline.
5/100
price stability
A 5 out of 100 says the stock trades like a headline machine, not a steady business.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $78M (14% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for VSTM right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue was $10M, but the company is still posting deep losses and the reported EPS figures do not line up cleanly across sources.
EDGAR shows latest-quarter revenue of $10 million and EPS of -$2.73. The base quarterly history shows Q4 2024 EPS of -$1.33, while Yahoo lists last earnings at -$1.35, so your main takeaway is simple: sales are still small and losses are still the story.
$10M
revenue
$2.73
eps
n/a
operating margin
the number that mattered
$10 million of revenue against a $492 million market cap tells you this stock still trades on future drug data, not current business strength.
source: EDGAR and quarterly company data, 2024
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What could go wrong
The #1 risk here is AVMAPKI commercial adoption after the launch pop. One approved drug can make a stock look cheap very quickly. It can also make the whole thesis wobble if physicians do not keep prescribing it.
med
AVMAPKI has to keep climbing after $30.9M
Initial launch revenue proved demand exists. It did not prove durability. If quarterly product sales stop building from the $11.2M Q3 2025 base, the market will treat the launch as a burst, not a ramp.
This risk touches essentially all current product revenue, because AVMAPKI FAKZYNJA CO-PACK is the business today.
med
VS-7375 is binary in the usual biotech way
Management plans to accelerate the clinical path in 2026. Good. But clinical-stage assets create value in jumps, not smooth lines. A setback would remove a major part of the future-growth argument.
If the pipeline disappoints, you are left underwriting one launched product inside a $492M company.
med
The balance sheet is workable, not bulletproof
A B balance sheet and $78M of long-term debt are manageable. They are not the same thing as strategic freedom. Commercial buildout and clinical development both cost money, usually at the same time.
This is a company with negative FY2024 EPS of -$3.66 still trying to prove scale. Cash use matters more here than it would at a mature pharma name.
A $492M stock with $30.9M of launch revenue and one approved drug can rerate fast in either direction. That is the opportunity. That is also the warning label.
source: institutional data · regulatory filings · risk analysis
Pay attention to
commercial
the next product revenue print
Q3 2025 came in at $11.2M and cumulative launch revenue reached $30.9M by Q4 2025. The cleanest read on the story is whether the next quarter keeps climbing from there.
pipeline
2026 VS-7375 milestones
Management said 2026 is about accelerating the clinical path. Watch for trial starts, updates, or any sign the timeline is slipping before the asset gets real data in front of investors.
adoption
NCCN guideline inclusion and physician uptake
Launch revenue is helpful. Guideline support and repeat prescribing are what turn early revenue into a durable oncology franchise.
financial
commercial ramp versus balance-sheet pressure
A B balance sheet and $78M of long-term debt are fine if launch momentum builds. If it does not, financing questions get louder very quickly.
Analyst rankings
earnings predictability
45 / 100
Low predictability means the numbers can move around a lot. In human-speak, analysts do not have a smooth model here yet.
beta
1.4
Beta measures how hard a stock tends to move relative to the market. At 1.4, VSTM has historically been more reactive than the index.
price stability
5 / 100
That is extremely low stability. Translation: this is an event-driven biotech, not a sleep-well-at-night holding.
source: institutional data
Institutional activity
institutional ownership data for VSTM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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