Verastem initiated with a Buy at B. Riley

B. Riley analyst Kalpit Patel initiated coverage of Verastem with a Buy rating and $21 price target. The company is advancing a combination of avutometinib, a RAF/MEK clamp, and defactinib, a FAK inhibitor, for low-grade serous ovarian cancer, the analyst tells investors in a research note. The analyst says the combo has shown “promising and consistent” results in its Phase I FRAME and Phase II RAMP-201 trials. The firm believes the recent pullback in the shares offers an attractive entry point for investors, with shares “likely to appreciate significantly” with the expected release of full registrational trial results and the subsequent filing for accelerated approval, likely to materialize in fiscal 2024.