Verastem, Inc. (NASDAQ:VSTM) Reports Year-End 2016 Financial Results

Verastem, Inc. (NASDAQ:VSTM)

Verastem, Inc. (NASDAQ:VSTM), has reported the financial results for the quarter ending December 31, 2016. The company also issued an update on a number of corporate developments. Verastem is engaged in the discovery and development of cancer treatment drugs. Verastem President and Chief Executive Officer Robert Forrester in a statement said the company recorded a lot of breakthrough in 2016. Among the success reported in the year is the in-licensing of duvelisib and the admission of defactinib in clinical trial together with immuno-oncology agents. Duvelisib is Verastem’s late-stage candidate with a lot of potential for treatment of T-cell and B-cell lymphoid malignancies.

For the year 2017, Forrester said they are focusing on a number of achievements starting with an update on top line data from the Phase 3 DUO™ trial of duvelisib toward the treatment of chronic lymphocytic leukemia (CLL). The report is expected to be out in mid 2017. Currently there is a very high demand among relapsed CLL patients and it is believed that duvelisib has the potential as an oral monotherapy with a safety profile for patients suffering from relapsed CLL.

In the financial results released, the company closed the year with $80.9 million in cash and cash equivalents together with investments. The company has $25.0 million in outstanding loan facility obtained from Hercules Capital, Inc. Forrester says the loan facility with put the company in a better financial position to advance study into duvelisib. The company reported a net loss of $36.4 million or $0.99 per share. This is in comparison to the $57.9 million, or $1.61 per share reported the previous financial year. The net loss is inclusive of $6.2 million and $9.7 million worth of expenses for non-cash stock-based compensation for 2016 and 2015 respectively.

The company’s research and development kitty amounted to $19.8 million in the last financial year compared to the previous year when it had a research budget of $40.6 million. A reduction of $20.8 million in the 2016 financial year is attributed to a $15.6 million reduction in expense for external contract research organization towards outsourced chemistry, biology, development and clinical services. The company’s administrative and general expenses for the last financial year amounted to $17.2 million in comparison to the previous year when the expenses were $17.6 million. The decrease is attributed to a reduction of $2.1 million in compensation expenses.

Ticker VSTM
Market Cap $68.39M
EPS (ttm) -$0.99
Shares Outstanding 36.97M
Shares Float 33.77M
Insider Ownership 20.38%
Float Short 0.67%
Short Ratio 0.64
Performance (Quarter) 54.17%
Performance (Year) 22.52%
Performance (YTD) 65.18%
Beta 1.93
Average Volume 353.3K
Price $1.85
Volume 1,075,563
Target Price $4.38

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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