Verastem Oncology Stock Drops After Hours After Discontinuing A Clinical Trial In Lung Cancer

• While the discontinued trial yielded early and sustained anti-tumor responses, next generation G12C inhibitors are establishing a new benchmark with higher response rates, Verastem CMO said. 
• Verastem said it will now focus its resources on the clinical development of VS-7375 in advanced NSCLC and other solid tumors. 
• VS-7375 demonstrated a 69% response rate in advanced KRAS G12D NSCLC.

Shares of Verastem Oncology (VSTM) fell 2% after hours on Monday after the company said that it has decided to discontinue its trial in advanced KRAS G12C-mutated non-small cell lung cancer (NSCLC) following evaluation of interim data.

No more patients will be enrolled in the trial being conducted in collaboration with Amgen and those already enrolled can continue treatment as per the investigator's discretion, the company said. The trial was evaluating Avutometinib and Amgen's Sotorasib in a“doublet combination” and also with Defactinib as a“triplet combination” in patients naïve to or previously treated with a KRAS G12C inhibitor, which is a targeted cancer drug that block the specific KRAS G12C mutation.

The company said it is assessing opportunities to share data from the interim analysis in the future.  

Fresh Focus

Verastem said it will now focus its resources on the clinical development of VS-7375, an oral KRAS G12D (ON/OFF) inhibitor, in advanced NSCLC and other solid tumors while also evaluating Avutometinib plus Defactinib in combination with chemotherapy in first line metastatic pancreatic cancer.

“While avutometinib plus defactinib combined well with a G12C inhibitor to drive early and sustained anti-tumor responses, next generation G12C inhibitors are establishing a new benchmark with higher response rates,” chief medical officer John Hayslip said.

Hayslip added that VS-7375 demonstrated a 69% response rate in advanced KRAS G12D NSCLC.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around VSTM jumped from 'bearish' to 'bullish' territory over the past 24 hours while message volume stayed at 'low' levels.

A Stocktwits user applauded the decision as“sound.”

Another opined that the VS-7375 numbers are“very exciting” and said they could see why the company prioritized it over the discontinued trial.

VSTM stock has gained 50% this year and more than doubled over the past 12 months. 

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