What happened
Shares of Verastem Oncology (VSTM -3.12%), a biotechnology company developing novel cancer therapies, are sliding after a highly anticipated data drop failed to impress investors. Shares of the biotech stock were down 42.9% as of 12:12 p.m. EDT on Monday.
So what
This year, the American Association for Cancer Research granted independent researchers who have been testing a combination of Verastem's experimental therapies a virtual poster presentation during this year's meeting. Verastem shares ballooned last week after the company told investors it would hold a conference call today to discuss results of an independently sponsored clinical trial that used VS-6766 plus defactinib to treat cancer patients with aggressive tumors driven by the same mutation.
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The stock is tanking today because there wasn't much to be excited about, at least from an investor's viewpoint. Among 10 lung cancer patients in the study with KRAS-mutant tumors, just 1 showed signs of tumor shrinkage.
Now what
Tumors driven by KRAS mutations are difficult to treat, but not for lack of trying. Amgen (AMGN -0.19%) and Mirati Therapeutics (MRTX) are both running clinical trials with drugs aimed at this target, and both have notched a great deal more success than Verastem's candidates.
Despite seemingly unbeatable competition from Amgen and Mirati for lung cancer patients, Verastem will probably try to convince investors there's a future for VS-6766 as an ovarian cancer treatment. Four out of six patients with KRAS-mutant-positive ovarian cancer responded to treatment with VS-6766 plus defactinib.
