2023-06-15 09:39:31 ET
Verastem, Inc. ( NASDAQ: VSTM ) added ~14% in the morning hours Thursday after Mizuho upgraded the clinical-stage biotech arguing that the recent data the company shared for its ovarian cancer therapy avutometinib could support its accelerated approval.
Shares of Needham, Massachusetts-based Verastem ( VSTM ) surged in late May after the company posted updated Phase 2 data for avutometinib as a single agent and in combination with defactinib in recurrent low-grade serous ovarian cancer (LGSOC).
“The dataset included a deepening of responses over time and updated objective-response-rate (ORR) consistent with earlier FRAME (investigator-initiated) results,” Mizuho analyst Mara Goldstein wrote, referring to a previous study targeted at KRAS mutant solid tumors.
In light of new data presented at the recent American Society of Clinical Oncology (ASCO) Annual Meeting, she raised the probability of success for the drug combination to 65% from 50%.
Upgrading Verastem ( VSTM ) to Buy from Neutral and raising her price target to $36 from $24 per share, she argued that “the evolution of the data as a positive” though accelerated approval is unlikely until at least late-2023/early-2024.
More on Verastem
- Verastem Oncology announces 1-for-12 reverse stock split, shares fall 3%
- Verastem: Updated Avutometinib Data Brings My Position Out Of Mothballs... Again
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Verastem climbs 14% as Mizuho upgrades after updates on cancer drug