While fighting cancer may not be a winner every time, when it is a winner, it’s often a big one, especially as stock prices go. Biotech stock Verastem (NASDAQ:VSTM) brought out its latest treatment for ovarian cancer, and the results were pretty impressive. Sufficiently so, in fact, to double Verastem’s share price and then some over Friday’s trading.
Verastem took on ovarian cancer with its drug avutometinib, and in Phase 2 trials, the results were pretty impressive. 45% of patients with ovarian cancer saw tumor sizes decrease with the treatment when used as part of a larger regimen. The study both investigated the effects of avutometinib by itself, along with avutometinib and defactinib against “recurrent low-grade serous ovarian cancer (LGSOC).” As of yet, there are no FDA-approved treatments for LGSOC, which could make Verastem a major new player in oncology.
Not only did tumor sizes decrease by 45% in objective response rates, 86% of patients saw some kind of shrinkage take place. There were some adverse effects—ranging from nausea to peripheral edema and blurred vision—but these were considered “mild to moderate” in nature. Only 12% of patients dropped out of testing due to these effects. In fact, Verastem has put particular effort into not only treating LGSOC but also calling out the major differences between it and high-grade serous ovarian cancer (HGSOC). That education campaign is likely to give it extra clout in the market, particularly when backed up with an effective treatment.
And analysts, by and large, are clearly on board. With four Buy ratings and one Hold, Verastem stock is considered a Strong Buy. Plus, Verastema also offers investors 197.03% upside potential thanks to its average price target of $3 per share.
