Verastem Reports $10M Revenue, Net Loss of $66M in Q3 2024

Verastem, Inc., a late-stage biopharmaceutical company focused on developing treatments for cancer, reported its financial results for the third quarter and the nine months ended September 30, 2024. The company experienced a significant increase in revenue, reporting $10 million for the nine months, attributed entirely to the sale of the COPIKTRA license and related assets, marking a substantial improvement from no revenue in the same period of 2023.

Despite this revenue growth, Verastem's financial performance showed continued challenges. The net loss for the third quarter of 2024 was $24 million, compared to a loss of $20 million in the same quarter of 2023, reflecting a 20% increase in losses. For the nine-month period, the net loss rose to $66 million, a 10% increase from $60 million in the prior year. The company's total operating expenses for the nine months ended September 30, 2024, reached $93 million, a 53% increase from $61 million in 2023, driven primarily by a 56% rise in research and development expenses, which totaled $61 million.

Research and development costs surged due to increased spending on the RAMP clinical studies for its product candidates, particularly the combination therapy of avutometinib and defactinib. Selling, general, and administrative expenses also rose significantly, totaling $33 million for the nine months, up from $22 million in 2023, largely due to launch preparations and personnel costs.

As of September 30, 2024, Verastem reported cash and cash equivalents of $113 million, a notable increase from $78 million at the end of 2023. However, total assets decreased to $126 million from $150 million, while total liabilities increased to $94 million from $71 million, resulting in a decline in stockholders' equity to $11 million from $57 million. The accumulated deficit also widened to $891 million from $825 million.

Strategically, Verastem has been active in collaborations, including a partnership with GenFleet Therapeutics, which involves exclusive rights for oncology programs targeting RAS pathway-driven cancers. The company made a milestone payment of $3 million to GenFleet during the third quarter for achieving a development milestone.

Verastem's financial position raises concerns about its ability to continue as a going concern within the next 12 months, primarily due to ongoing operating losses and the lack of regulatory approval for its product candidates. Future financing will rely on existing cash, potential milestones, and royalties, although these are not deemed probable for the going concern assessment.