Verastem Posts $74.7M Q3 Loss as Cash Burn Draws Scrutiny
VSTM has more than doubled off its 52-week low of $3.43.
Summary
Verastem reported a $74.7 million net loss for the third quarter on revenue of $24 million, with operating expenses of USD 99.236 million. That is a heavy loss for a company with a roughly $1.1 billion market cap, and it lands just weeks after the company raised $250 million in an October 14 offering of 30.9 million shares at $8.00. The raise was paired with a disclosed cash position of $172.8 million, so this quarter's burn is the number that matters for how long that runway lasts. The company has already flagged going-concern doubt in its prior 10-Q, which makes each quarterly loss a direct test of the new capital. Watch for the full 10-Q and any update on VS-7375 spending, the KRAS G12D program that drove the October data readout and the offering.
At the time of this announcement, VSTM was trading at $9.38 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $3.43 to $10.82. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.