VSTM Stock: Why It Significantly Increased Today

By Amit Chowdhry ● Sep 20, 2021
  • The stock price of Verastem Inc (NASDAQ: VSTM) increased by over 20% pre-market today. This is why it happened.

The stock price of Verastem Inc (NASDAQ: VSTM) – a biopharmaceutical company committed to advancing new medicines for patients battling cancer – increased by over 20% pre-market today. Investors are responding positively to Verastem Oncology announcing a clinical collaboration agreement with Amgen to evaluate the combination of VS-6766, Verastem Oncology’s investigational dual RAF/MEK inhibitor, with Amgen’s KRAS G12C inhibitor LUMAKRAS (sotorasib) in KRAS G12C-mutant non-small cell lung cancer (NSCLC).

The Phase 1/2 trial is going to evaluate the safety, tolerability and efficacy of VS-6766 in combination with LUMAKRAS in patients with KRAS G12C-mutant NSCLC who have not been previously treated with a KRAS G12C inhibitor as well as in patients who have progressed on a KRAS G12C inhibitor. And the study will therefore investigate the potential benefits of a more complete vertical blockade of the RAS pathway with the combination of VS-6766 (RAF/MEK blockade) with LUMAKRAS (G12C inhibition) in KRAS G12C-mutant locally advanced or metastatic NSCLC.

Verastem Oncology is expecting to initiate the clinical trial with VS-6766 and LUMAKRAS by the end of 2021.

KEY QUOTES:

“Recent data indicate that acquired resistance to KRAS G12C inhibitors in patients occurs predominantly through additional mutations in the RAS pathway, many of which may be addressed with a downstream inhibitor such as VS-6766. This clinical study of VS-6766 and LUMAKRAS will build on preclinical data showing synergy between these two agents, including tumor regression through deeper blockade of ERK pathway signaling.”

— Ramaswamy Govindan, M.D., Professor, Department of Medicine, Oncology Division at Washington University School of Medicine and lead investigator of the study

“We are pleased to partner with Amgen on this important research that could potentially expand treatment options for patients with KRAS G12C-mutant NSCLC. This collaboration advances our strategy to fully explore the potential of VS-6766 as a backbone of therapy to treat RAS pathway-driven cancers.”

— Brian Stuglik, CEO of Verastem Oncology

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.