Analyst Sean Lee CFA from H.C. Wainwright maintained a Buy rating on Verastem and keeping the price target at $14.00.
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Sean Lee CFA has given his Buy rating due to a combination of factors including the promising results from Verastem’s novel KRAS G12D inhibitor, VS-7375, presented at the ESMO Congress. The study demonstrated a 41% objective response rate and a 97% disease control rate among patients with advanced pancreatic ductal adenocarcinoma, indicating strong efficacy. Additionally, the median progression-free survival was reported at 5.5 months, with a high 4-month overall survival rate of 92%. These results suggest that VS-7375 is effective in controlling the disease in a heavily pretreated patient population.
Despite a slight decrease in the objective response rate compared to previous data, VS-7375 still shows a competitive edge over other KRAS G12D inhibitors in development, such as those from Revolution Medicine and Incyte. Although there is a higher incidence of adverse events with VS-7375, the overall safety profile remains acceptable with low discontinuation and dose-reduction rates. These factors combined with the drug’s efficacy support the Buy rating, as the potential benefits of VS-7375 outweigh the risks in the current competitive landscape.
In another report released on October 17, RBC Capital also maintained a Buy rating on the stock with a $13.00 price target.