Verastem (NASDAQ: VSTM) is made up of a team of who’s who scientists, board members, and executives from prestigious universities and Big Pharma companies around. The company is developing a therapeutic approach to use next generation chemotherapeutics to kill cancer stem cells. If the company is successful, a new approach to chemotherapy will be created, one that also attacks cancer recurrence; a large unmet medical need in cancer.
An investment in Verastem might take a while to appreciate. The company’s most advanced study is VS-6063, which is being used to treat advanced solid tumors. Currently, it is being tested on both mesothelioma and ovarian cancer. According to the company, a regulatory filing could occur as early as early 2015 for this product.
VS-6063 is just the beginning of the company’s pipeline. It then has VS-4718 to target cancer stem cells and a small molecule inhibitor VS-5584. With the chemotherapy market being $15 billion annually, and there being no form to prevent disease recurrence, it seems likely that Verastem's next generation chemotherapy could be very successful in this large market; although no peak sales have been established.
Paying attention to published price targets sets yourself up to get manipulated. I agree that this company is quite solid. It is clear that the founders are giants in the fields of cancer biology and genomics, and that certainly attracts excellent people to work for the company. The people who write analyst reports are much less impressive, by comparison.