Verastem Jumps as VS-7375 Posts 50% Response Rate in Pancreatic Cancer, Backed by $250 Million Raise and CEO Succession Plan

Verastem, Inc. (NASDAQ: VSTM) shares rose about 19% on Wednesday, putting the stock at the top of the PRISM Women’s Health Index. The jump followed the first efficacy data for VS-7375, the company’s oral KRAS G12D inhibitor. In patients with second-line metastatic pancreatic cancer, VS-7375 produced a 50% confirmed response rate. Verastem also priced a $250 million stock offering and named Michael P. Bailey as its next CEO. Together, the three announcements gave investors new data, more cash and a leadership plan on the same day.

Key Points

• At the 900 mg daily dose, VS-7375 produced a 50% confirmed response rate in second-line pancreatic cancer and an 86% disease control rate in second-line-or-later patients.
• In second-line-or-later pancreatic cancer, 67% of patients had not progressed at six months and 80% were alive at six months. Two patients had complete responses, one of them confirmed.
• Verastem priced about 30.9 million shares at $8.00 each for roughly $250 million in gross proceeds. The money will fund VS-7375 development.
• Michael P. Bailey, the former CEO of AVEO Pharmaceuticals, will take over from retiring CEO Dan Paterson on January 1, 2027.
• Verastem has agreed with the FDA on the design of a Phase 3 trial in first-line pancreatic cancer and plans to open it by year-end.

Pancreatic Cancer Data Clears a High Bar

As PRISM MarketView reported last week, investors bought Verastem shares ahead of Wednesday’s investor event. The data supported that bet. Patients in the pancreatic group had received a median of two prior treatments. At the 900 mg dose, 9 of 22 patients in second-line-or-later disease had a confirmed response, or 41%. In the second-line subgroup, 4 of 8 patients responded, or 50%.

Biomarker results pointed the same way. Among patients with high baseline levels of CA19-9, a pancreatic tumor marker, 15 of 17 saw the marker fall by more than half. In addition, 7 of 12 evaluable patients cleared detectable KRAS G12D tumor DNA from their blood entirely. As a result, Verastem chose 900 mg as its go-forward monotherapy dose.

Early Signals in Lung and Colorectal Cancer

Verastem also reported activity beyond pancreatic cancer. At 600 mg, VS-7375 produced a 43% confirmed response rate in previously treated non-small cell lung cancer. In first-line lung cancer, adding VS-7375 to standard treatment produced responses in 6 of 8 patients. Meanwhile, in late-line colorectal cancer, combining VS-7375 with an anti-EGFR antibody produced early responses. Many of these groups are small, however, and follow-up remains short.

Tolerability Supports Combination Strategy

At 900 mg, only 2% of patients stopped treatment because of side effects. Grade 3 treatment-related side effects occurred in 10% of patients, and severe gastrointestinal side effects in 2%. The company reported no mucositis and no clinically meaningful blood-count or liver problems. This profile supports Verastem’s plan to pair VS-7375 with chemotherapy and anti-EGFR therapy.

$250 Million Raise Funds the Phase 3 Push

Shortly after the data, Verastem priced 30,937,500 shares at $8.00 each, plus pre-funded warrants, for about $250 million in gross proceeds. Jefferies, Guggenheim Securities and Cantor are leading the deal, which should close on or about October 15. The new cash builds on the momentum from AVMAPKI FAKZYNJA CO-PACK sales that PRISM MarketView covered in August. That combination is Verastem’s approved treatment for recurrent low-grade serous ovarian cancer, the drug that earned Verastem its place in the Women’s Health Index.

The Phase 3 trial, TARGET-D 301, will test VS-7375 in two combinations against standard chemotherapy in first-line metastatic pancreatic cancer. Its primary endpoints are progression-free survival and response rate. Verastem has a busy calendar ahead:

• By year-end 2026: open the Phase 3 trial and report more colorectal and pancreatic combination data.
• Q1 2027: report first-line pancreatic data with chemotherapy.
• 1H 2027: begin Phase 3 trials in colorectal and lung cancer.

A Commercial Veteran Takes the Helm

Bailey joined Verastem’s board in May 2026. He brings more than 30 years in biopharma, including 16 years at AVEO Pharmaceuticals. As AVEO’s CEO, he led the launch of FOTIVDA and the company’s 2023 sale to LG Chem. Earlier in his career, he led the ERBITUX launch at ImClone Systems. Paterson, who led Verastem’s acquisition of VS-7375, will stay on the board and serve as an advisor.

What Investors Should Watch

For the PRISM Women’s Health Index, Verastem now has growing ovarian cancer sales alongside a late-stage KRAS program. These results build on the pancreatic cancer signal PRISM MarketView highlighted earlier. Still, the data come from a company press release, have not been peer-reviewed and involve small groups with short follow-up. The offering will also dilute existing shareholders.