Verastem stock falls after announcing public offering

Investing.com -- Verastem Inc (NASDAQ:VSTM) stock dropped 7.8% in after-hours trading Thursday following the company’s announcement of a proposed public offering of common stock.

The biopharmaceutical company, which focuses on developing treatments for RAS/MAPK pathway-driven cancers, intends to offer shares with an option for underwriters to purchase up to an additional 15% of shares within 30 days. Jefferies, Guggenheim Securities, and Cantor are serving as joint book-running managers for the offering.

Verastem plans to use proceeds from the offering to fund commercial activities for its recently FDA-approved AVMAPKI™ FAKZYNJA™ CO-PACK treatment for KRAS-mutated recurrent Low-Grade Serous Ovarian Cancer. Additional funds will support continued clinical research and development of other product candidates, including the VS-7375 oral KRAS G12D inhibitor program, as well as working capital and general corporate purposes.

The company noted that the offering is subject to market conditions, with no guarantee regarding completion timing or final terms.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.