B.Riley FBR Thinks Verastem’s Stock is Going to Recover

By Carrie Williams

B.Riley FBR analyst George Zavoico reiterated a Buy rating on Verastem (VSTMResearch Report) on August 2 and set a price target of $9. The company’s shares closed on Friday at $1.40, close to its 52-week low of $1.16.

Zavoico wrote:

“Yesterday, 8/1, after markets closed, Verastem, Inc. reported 2Q19 earnings that beat our and consensus estimates on Copiktra (duvelisib) sales revenue but missed on operating expenses and net loss. Copiktra sales nearly doubled from $1.67M in 1Q19 to $3.02M, an 81% increase, on a 50% increase in the number of prescribing physicians, achieving reimbursement coverage with nearly all targeted insurance plans, and initiating a marketing campaign for a third indication, follicular lymphoma (FL), in March. Based on this increase in sales and near-term expectations, which we interpret as an increase in order flow and feedback from Verastem’s sales force, the company raised its guidance for full-year 2019 sales from $10.0M – $12.0M to $12.0M – $14.0M.”

According to TipRanks.com, Zavoico has 0 stars on 0-5 star ranking scale with an average return of -6.3% and a 37.2% success rate. Zavoico covers the Healthcare sector, focusing on stocks such as Iovance Biotherapeutics Inc, BioLife Solutions, and Infinity Pharma.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Verastem with a $4.63 average price target, which is a 230.7% upside from current levels. In a report issued on August 2, H.C. Wainwright also reiterated a Buy rating on the stock with a $2.50 price target.

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The company has a one-year high of $10.35 and a one-year low of $1.16. Currently, Verastem has an average volume of 2.16M.

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Verastem, Inc., operating as Verastem Oncology, is a biopharmaceutical company focusing on developing and commercializing medicines to improve the survival and quality of life of cancer patients. It markets COPIKTRA™ (duvelisib), an oral inhibitor of phosphoinositide 3-kinase (PI3K) and dual inhibitor of PI3K-delta and PI3K-gamma, which is indicated for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma after at least two prior therapies and relapsed or refractory follicular lymphoma (FL) after at least two prior systemic therapies. The indication in FL is approved under accelerated approval based on overall response rate. In addition, it is developing the focal adhesion kinase inhibitor defactinib, which is being evaluated in three separate clinical collaborations in combination with immunotherapeutic agents for the treatment of various different cancer types, including pancreatic cancer, ovarian cancer, non-small cell lung cancer (NSCLC), and mesothelioma. Verastem, Inc. has collaboration agreements with Yakult Honsha Co., Ltd., CSPS Pharmaceutical Group Limited and The Leukemia & Lymphoma Society. The company was founded by Richard H. Aldrich, Michelle Dipp, Piyush Gupta, Satish Jindal, Eric S. Lander, Robert F. Weinberg, and Christoph H. Westphal on August 4, 2010 and is headquartered in Needham, MA.