Stock

Verastem

VSTM

Biotechnology · Healthcare

Also trades as: 0LOV.L GBP 0.10 (-1.39%)

Price

$10.04

-0.02 (-0.20%)

Market Cap

$909.3M

Exchange

NASDAQ

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Oct 24, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality

Mixed

10/30

Growth

Good

10/20

Cash Flow

Weak

0/10

Stability

Weak

2/10

Valuation

Data not available

0/10

Ownership

Good

10/15

Dividends

Not counted

n/a

32 of 95 counted points = Winston Score 34. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count rising — dilution

+376.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 14.5M (2021) → 69.3M (2025)

§Winston Score History

The full picture

Verastem is a small biotechnology company that develops cancer drugs. Its main product is Avutometinib plus Defactinib, a combination therapy targeting a type of ovarian cancer called low-grade serous ovarian cancer (LGSOC). The company sells to oncologists and cancer treatment centers, primarily in the United States, and received FDA approval for this combination in 2024 under the brand name AVMAPKI FAKZYNJA Co-pack.

Verastem makes money by selling its approved drug to hospitals and specialty pharmacies. It operates almost entirely in the US and is a small commercial-stage company with a market cap around $500 million. The gross margin is positive, but the company spends far more than it earns, resulting in deep operating losses — a common situation for newly commercial biotechs. The key growth driver is expanding the use of its drug into additional cancer types, while the main risk is whether it can grow revenue fast enough to stop burning through cash.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

>+1,000% YoY

YoY Growth Rate

Revenue accelerating

Reported EPS Growth

+10.3% YoY

Quarterly reporting periods ended:

30 Jun 2025: $-0.39

30 Jun 2026: $-0.35

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

R&D Spend

$115M/ year

↑ Rising (+41% vs prior year)

370.7% of revenue

20.6x the sector average (18%)

Investing heavily in future products and technology

Insider Activity

19.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~9 months

$137M cash & investments

Quarterly Free Cash Flow

Short runway — potential dilution ahead through share issuance

Revenue accelerating

Verastem grew revenue 1775% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

89.9%

Premium pricing power — 89.9% gross margin

Profit after running costs

Operating Margin

-81.6%

Losing money on operations — -81.6%

Return on the money invested

ROCE

-119.0%

Weak — -119.0% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

>+1,000%

Fast-growing sales (>+1,000% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

FCF Margin

-186.8%

Burning cash (-186.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

1.69

Elevated debt (1.69)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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