Verastem price target lowered to $16 from $32 at RBC Capital

RBC Capital lowered the firm’s price target on Verastem to $16 from $32 and keeps an Outperform rating on the shares. The firm is citing the “modest” overall response rate in the company’s update on its RAMP 201 trial of avutometinib and defactinib in LGSOC low-grade serous ovarian cancer disclosed on Friday, stating that the potential narrower label in LGSOC is “less-than-ideal”. RBC adds that it sees increasing uncertainty on the utility of the program in KRAS wild type with respect to the new layers of risk ahead on updated data in the second half of 2024 and the rolling new drug application.