Daniel Calkins, the Chief Financial Officer of Verastem, Inc. (NASDAQ:VSTM), a $175 million market cap biotechnology company, recently sold shares of the company's common stock, according to a regulatory filing. According to InvestingPro analysis, while the company maintains strong liquidity with a current ratio of 3.23, it faces challenges with rapid cash burn. The transactions, which occurred on December 20 and December 24, involved the sale of a total of 93 shares, generating approximately $391. The shares were sold at prices ranging from $3.91 to $4.34 per share. These sales were conducted to satisfy statutory withholding requirements related to the vesting of restricted stock units, as noted in the filing. Following these transactions, Calkins holds 47,368 shares of Verastem. The stock has shown resilience with a 27% gain over the past six months, despite recent market volatility. For deeper insights into VSTM's financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Verastem has been making significant strides in its ongoing clinical studies and financial performance. The company has presented updated results from its RAMP 203 study, examining a combination of avutometinib, defactinib, and sotorasib in treating KRAS G12C mutant non-small cell lung cancer. No reported dose-limiting toxicities have been observed with the triplet therapy, and Verastem plans to provide further updates before potentially expanding patient groups for the combination therapies.
Analyst firms H.C. Wainwright, Mizuho (NYSE:MFG) Securities, and Truist Securities have maintained their positive ratings on Verastem's stock, with price targets ranging from $7 to $15. Mizuho Securities, in particular, has raised its price target on Verastem to $9.00, citing a revised valuation model for the company's leading cancer treatment, avutometinib plus defactinib.
Verastem's financial health remains fair, with the company holding more cash than debt and maintaining a healthy current ratio of 3.23. As of the end of the third quarter of 2024, Verastem reported having $113 million in cash and cash equivalents, which it believes will support the company's operations through the first half of 2025.
Lastly, the company has received the FDA's Orphan Drug Designation for a drug combination aimed at treating pancreatic cancer and disclosed promising interim results from its ongoing RAMP 205 trial. These are part of Verastem's recent developments, emphasizing its continued efforts in oncology.
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