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Verastem Oncology Prices $85M Offering of Common Stock

NEW YORK – Verastem Oncology on Friday priced an $85 million underwritten public offering of 7,181,409 shares of its common stock at $9.75 per share.

Verastem will offer pre-funded warrants to certain investors to purchase up to 1,538,591 shares of its common stock at a price of $9.749 per warrant. The firm has also granted the underwriters a 30-day option to purchase an additional 1,308,000 shares of its common stock at the public offering price.

Verastem will use the proceeds from the public offering to fund research and development of its pipeline candidates for RAS/MAPK-driven tumors, to support the potential launch of RAF/MEK inhibitor avutometinib and FAK inhibitor defactinib in low-grade serous ovarian cancer, and for working capital and other general corporate purposes.

Proceeds from the offering, along with existing cash, are expected to fund projected operating expenses and capital expenditures for at least the next 12 months, the company said in a filing with the US Securities and Exchange Commission.

The company is also studying the avutometinib-defactinib combination in other RAS/MAPK pathway -driven gynecological, lung, pancreatic, melanoma, and pancreatic cancers, along with an ongoing study in estrogen receptor (ER)-positive breast cancer. Verastem has also previously partnered with Mirati Therapeutics and Amgen to study avutometinib in combination with their KRAS G12C inhibitors in non-small cell lung cancer.

RBC Capital Markets and Cantor are acting as joint book-running managers and representatives of the underwriters for the offering. BTIG is acting as lead manager for the offering. HC Wainwright and A.G.P./Alliance Global Partners are acting as co-managers for the offering. The offering is expected to close on June 21.