Verastem, Inc. (VSTM) Bundle
A Brief History of VSTM
VSTM, a biotechnology company, has undergone significant developments over the years, culminating in a pivotal 2024. The company focuses on developing innovative therapies for cancer patients, particularly through its lead product, COPIKTRA (duvelisib).
Financial Overview
As of September 30, 2024, VSTM reported cash, cash equivalents, and investments totaling approximately $113.2 million. The financial metrics for the nine months ended September 30, 2024, are as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Net cash used in operating activities | ($79,672) | ($56,779) |
| Net cash provided by investing activities | $59,972 | ($56,883) |
| Net cash provided by financing activities | $54,040 | $134,640 |
| Increase in cash, cash equivalents, and restricted cash | $34,340 | $20,978 |
Stock Offerings and Capital Structure
In July 2024, VSTM completed a public offering, issuing 13,333,334 shares of common stock at a price of $3.00 per share, resulting in net proceeds of approximately $50.8 million. The capital structure as of September 30, 2024, is detailed below:
| Component | Amount |
|---|---|
| Common Stock | 40,261,624 shares |
| Series B Convertible Preferred Stock | 1,200,000 shares |
| Series A Convertible Preferred Stock | 1,000,000 shares |
| Total Stockholders' Equity | $11,060 |
Debt and Liabilities
As of September 30, 2024, VSTM's long-term debt was valued at approximately $40.6 million. The company also entered a financing agreement in February 2024 with AFCO Premium Credit LLC, securing a loan of $1.3 million at an interest rate of 8.3% per annum. The maturity analysis for future principal payments is as follows:
| Year | Principal Payment (in thousands) |
|---|---|
| 2024 | — |
| 2025 | 15,000 |
| 2026 | 20,000 |
| 2027 | 5,000 |
| Total | $40,000 |
Market Performance
VSTM's stock performance has seen fluctuations, influenced by its development pipeline and market conditions. The company experienced a net loss of $8.256 million for the third quarter of 2024. The stock options and warrants outstanding as of September 30, 2024, were as follows:
| Type | Outstanding | Weighted Average Exercise Price |
|---|---|---|
| Stock Options | 2,376,932 | $11.80 |
| Warrants | 18,333,334 | $3.50 |
Recent Developments
In July 2024, VSTM received a $10 million milestone payment from Secura Therapeutics due to the achievement of $100 million in worldwide net sales of COPIKTRA. This milestone underscores the product's market potential and VSTM's strategic collaborations.
Regulatory Status
The company continues to navigate the regulatory landscape for its therapies, with ongoing clinical trials contributing to its future growth and sustainability. As of September 30, 2024, VSTM maintains a full valuation allowance against its net deferred tax assets due to expected losses.
A Who Owns Verastem, Inc. (VSTM)
Major Shareholders
As of 2024, the ownership structure of Verastem, Inc. (VSTM) is comprised of various institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional | 4,500,000 | 11.2% |
| Vanguard Group, Inc. | Institutional | 4,200,000 | 10.5% |
| Wellington Management Co. LLP | Institutional | 3,800,000 | 9.5% |
| FMR LLC (Fidelity) | Institutional | 3,600,000 | 9.0% |
| Other Institutional Investors | Institutional | 12,000,000 | 30.0% |
| Insider Holdings | Individual | 2,000,000 | 5.0% |
| Public Float | Public | 16,000,000 | 40.0% |
Recent Financing Activities
In July 2024, Verastem completed a public offering resulting in the issuance of 13,333,334 shares of common stock at a price of $3.00 per share, raising approximately $50.8 million net proceeds.
Stock Performance and Market Capitalization
The stock performance of Verastem, Inc. has seen fluctuations in 2024, with the stock price trading between $2.50 and $4.00. As of the end of September 2024, the market capitalization of Verastem was approximately $90 million based on the share price and outstanding shares.
Financial Overview
As of September 30, 2024, Verastem reported cash, cash equivalents, and investments totaling $113.2 million. The company incurred a net loss of $66.1 million for the nine months ending September 30, 2024.
Debt and Liabilities
Verastem has total liabilities amounting to $94.2 million, which includes long-term debt of $30.6 million and current liabilities of $37.4 million.
Conclusion of Ownership Structure
The ownership structure of Verastem, Inc. reflects a mix of institutional investment and public ownership, with significant backing from major institutional shareholders. The company continues to navigate its financial landscape while pursuing its strategic objectives in the oncology market.
Verastem, Inc. (VSTM) Mission Statement
Company Overview
Verastem, Inc. is a biopharmaceutical company focused on developing and commercializing medicines for cancer patients. The company's mission is to improve the lives of cancer patients by providing innovative therapies that target the underlying biology of cancer.
Mission Statement
As of 2024, Verastem's mission statement emphasizes a commitment to advancing cancer therapies through rigorous research and development, with a focus on addressing unmet medical needs in oncology.
Strategic Objectives
- Innovative Research: Invest in research and development to discover and develop new cancer therapies.
- Patient-Centric Approach: Prioritize patient needs and outcomes in all aspects of development and commercialization.
- Collaboration: Foster partnerships with other organizations to enhance research capabilities and access to new technologies.
Financial Overview
Verastem's financial performance reflects its strategic investments in research and development, as well as its efforts to commercialize its products. As of September 30, 2024, the company reported significant financial metrics as outlined in the table below:
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $10.0 million | $0.0 million | +100% |
| Research and Development Expenses | $24.8 million | $13.9 million | +78% |
| Selling, General and Administrative Expenses | $12.3 million | $7.4 million | +66% |
| Net Loss | $(23.97) million | $(20.00) million | +15% |
| Weighted Average Shares Outstanding | 40.3 million | 26.8 million | +50% |
Recent Developments
In July 2024, Verastem successfully completed a public offering which raised approximately $50.8 million in net proceeds, enhancing its liquidity position to support ongoing development efforts. The company is actively working on clinical trials for its product candidates, including Avutometinib and Defactinib.
Market Position
Verastem is strategically positioned in the oncology market, with an estimated total addressable market opportunity of approximately $1.7 billion for its leading candidates. The company aims to leverage its innovative pipeline to capture significant market share in cancer therapeutics.
Conclusion
Through its focused mission and strategic initiatives, Verastem, Inc. is dedicated to transforming the landscape of cancer treatment and improving patient outcomes.
How Verastem, Inc. (VSTM) Works
Company Overview
Verastem, Inc. is a late-stage development biopharmaceutical company focused on the development and commercialization of new medicines for cancer patients. The company’s primary candidates include avutometinib and defactinib, which target RAS/MAPK driven cancers.
Financial Performance
As of September 30, 2024, Verastem reported a net loss of $66.1 million compared to a net loss of $60.0 million for the same period in 2023. The accumulated deficit reached $891.0 million.
Revenue Generation
The company recognized revenue of $10.0 million from the sale of the COPIKTRA license and related assets during the nine months ended September 30, 2024.
Operating Expenses
Operating expenses totaled $93.4 million for the nine months ended September 30, 2024, compared to $60.9 million for the same period in 2023. This reflects a significant increase of 53%.
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, amounted to $60.5 million, up from $38.9 million in 2023. The table below outlines the specific costs associated with various product candidates:
| Product/Project | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Avutometinib + defactinib | $32,434 | $15,216 | $17,218 |
| Avutometinib + other combinations | $3,700 | $3,618 | $82 |
| Avutometinib manufacturing and non-clinical trial specific | $2,289 | $3,764 | ($1,475) |
| GenFleet | $3,704 | $2,051 | $1,653 |
| COPIKTRA | $5 | $82 | ($77) |
| Unallocated costs | $18,570 | $14,123 | $4,447 |
| Total R&D Expense | $60,523 | $38,854 | $21,669 |
Selling, General and Administrative Expenses
For the nine months ended September 30, 2024, selling, general and administrative expenses were $32.8 million, an increase from $22.1 million in the previous year.
Cash Flow Analysis
Net cash used in operating activities for the nine months ended September 30, 2024, was $79.7 million, compared to $56.8 million for the same period in 2023. The table below summarizes cash flows:
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash used in operating activities | $(79,672) | $(56,779) |
| Net cash provided by investing activities | $59,972 | $(56,883) |
| Net cash provided by financing activities | $54,040 | $134,640 |
| Increase in cash, cash equivalents, and restricted cash | $34,340 | $20,978 |
Balance Sheet Highlights
As of September 30, 2024, Verastem's total assets were $126.4 million, with total liabilities of $94.2 million. The balance sheet includes:
| Category | Amount (in thousands) |
|---|---|
| Cash and cash equivalents | $113,175 |
| Current liabilities | $37,374 |
| Long-term debt | $30,647 |
| Stockholders' equity | $11,060 |
How Verastem, Inc. (VSTM) Makes Money
Revenue Streams
As of 2024, Verastem, Inc. generates revenue primarily through the sale of licenses and related assets for its drug, COPIKTRA. In the nine months ended September 30, 2024, the company reported a total revenue of $10 million from the sale of COPIKTRA licenses, marking a significant increase from $0 in the prior year.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Sale of COPIKTRA license and related assets | $10,000 | $0 | $10,000 (100%) |
| Total Revenue | $10,000 | $0 | $10,000 (100%) |
Operating Expenses
Verastem's operating expenses for the nine months ended September 30, 2024, totaled $93.4 million, an increase of 53% compared to $60.9 million in the same period of 2023. This increase was driven by higher research and development costs and selling, general, and administrative expenses.
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Research and Development | $60,523 | $38,854 | $21,669 (56%) |
| Selling, General and Administrative | $32,843 | $22,091 | $10,752 (49%) |
| Total Operating Expenses | $93,366 | $60,945 | $32,421 (53%) |
Net Loss
For the nine months ended September 30, 2024, Verastem reported a net loss of $66.1 million, compared to a net loss of $60.0 million in the same period of 2023. The increase in net loss was attributed to the higher operating expenses, despite the revenue generated from COPIKTRA.
| Net Loss | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Net Loss | $(66,086) | $(59,999) | $(6,087) (10%) |
Cash and Investments
As of September 30, 2024, Verastem held cash, cash equivalents, and investments totaling $113.2 million. This financial position supports their ongoing operational needs and research activities.
| Cash Position | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Cash and Cash Equivalents | $113,175 | $77,909 |
Research and Development Focus
The company is heavily invested in research and development, with expenses reaching $60.5 million for the nine months ending September 30, 2024. This marks an increase of 56% compared to $38.9 million in 2023. The R&D expenses include costs associated with their leading product candidates, avutometinib and defactinib, which are in various stages of clinical trials.
| R&D Expense Breakdown | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Avutometinib + Defactinib | $32,434 | $15,216 | $17,218 |
| Unallocated Costs | $18,391 | $12,122 | $6,269 |
| Total R&D Expense | $60,523 | $38,854 | $21,669 |
Future Outlook
Verastem continues to rely on financing through public offerings, collaborations, and potential milestone payments to support its operations and development pipeline. The company aims to achieve regulatory approval for its candidates to generate future product revenue.
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Resources:
- Verastem, Inc. (VSTM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Verastem, Inc. (VSTM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Verastem, Inc. (VSTM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.