VSTM

Verastem is a newly-commercial biopharma whose entire story rests on AVMAPKI FAKZYNJA CO-PACK, which won U.S. accelerated approval on May 8, 2025 for KRAS-mutated recurrent LGSOC. FY2025 revenue tripled to $30.9M (+209%), but this is a first-year launch off a tiny base, and the company still lost $209M with a -677% net margin and -550% operating margin. R&D alone was $115M. The market cap of $395M against $30.9M of sales (12.8x P/S) prices in a large, unproven commercial ramp — a demanding valuation for a drug two months into its launch and dependent on a limited set of specialty pharmacies.

The balance sheet is the crux. Cash was $205M at year-end plus $29.4M of January-2026 warrant proceeds (~$234M), but operating cash burn was -$138M and management explicitly states existing resources are sufficient only 'through 12 months from the date of issuance' — a going-concern-adjacent runway, not a comfortable cushion. The MD&A and Risk Factors are candid that the company 'expect[s] to finance our cash needs through a combination of equity offerings, debt financings, collaborations… [and] the ownership interest of our existing stockholders will be diluted.' That dilution is already visible: shares outstanding jumped 70.6% in one year, and the accumulated deficit stands at $1.16B.