Verastem's (VSTM) G12D drug showed promising efficacy in pancreatic cancer, while its shares remain undervalued, RBC Capital Markets said in a note Thursday.
The analysts said the company presented new research and development results for its G12D drug at an R&D day. The drug appears to be active, with early signs that it could deliver strong efficacy in treating pancreatic cancer.
More data is needed to determine whether the drug offers meaningful advantages over competing G12D treatments. However, RBC believes the company has outlined a strategy to target a niche in the US market and that its shares do not fully reflect the potential value of its pipeline and Av-Fak business.
The analysts said VS-7375's efficacy data were encouraging, with a confirmed response rate of 41% in pancreatic cancer. However, they cautioned that comparisons with competing drugs are complicated by small patient numbers and differences between trial populations. RBC also noted that the drug's tolerability profile lagged that of zoldon, although it viewed the safety profile as manageable.
RBC raised its price target on Verastem to $19 from $14, with an outperform rating.
The company's shares were up nearly 6% in Thursday afternoon trading.
Price: 8.16, Change: +0.45, Percent Change: +5.84
Comments