Verastem rises on promising cancer drug data; Bailey succeeds Paterson as CEO
VSTM•Verastem shares rose 15.3% premarket after the company said its experimental drug shrank tumors in several advanced cancers and named Michael P. Bailey to succeed CEO Daniel Paterson. It also raised its third-quarter net product revenue forecast and priced a $250 million share offering.
1. Drug data and company updates
Verastem said its experimental drug VS-7375 shrank tumors across several advanced pancreatic and colorectal cancers in an early-to-mid-stage trial. After discussions with the FDA, the company plans to start a late-stage pancreatic cancer trial by the end of 2026. Daniel Paterson will retire as CEO and president after 15 years, with Michael P. Bailey succeeding him. Verastem raised its third-quarter net product revenue forecast to $23.9 million-$24.1 million, from $11.2 million a year earlier, and priced a $250 million public offering of 30.94 million common shares at $8 each.
