CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 13, 2012--
Verastem, Inc., (NASDAQ: VSTM) a biopharmaceutical company focused on
discovering and developing drugs to treat breast and other cancers by
targeting cancer stem cells, today reported financial results for the
quarter ended June 30, 2012, and also commented on certain corporate
accomplishments and plans.
“We made significant advances in our therapeutic programs during the
second quarter,” said Christoph Westphal, M.D., Ph.D., Chairman,
President and Chief Executive Officer of Verastem. “The acquisition of
the Phase 2-ready focal adhesion kinase inhibitors from Pfizer
accelerates this key cancer stem cell-targeting program by approximately
12-18 months, and we are now positioned to initiate a potential
registration study in mesothelioma next year.”
Recent Accomplishments
Our significant recent accomplishments include the following:
Focal Adhesion Kinase (FAK) Inhibition
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Accelerated the FAK program by 12-18 months with the in-license of
VS-6063 from Pfizer
-
VS-6063 has completed a Phase 1 study in advanced solid tumors,
where it was well tolerated and demonstrated signs of clinical
activity
-
VS-6063 is expected to enter into a Phase 2 mesothelioma study in
mid-2013
-
A positive Phase 2 trial in mesothelioma could present an
opportunity for an accelerated approval
-
Nominated VS-4718 as a development candidate
-
IND-enabling toxicology studies were initiated in June 2012
-
Accelerated VS-4718 clinical development with a planned Phase 1
healthy volunteer study anticipated to initiate in Q1 2013
Dual PI3K/mTOR Inhibition
-
Outlined clinical development plans for VS-5584 including a Phase 1
study in patients with advanced solid tumors anticipated to commence
in mid-2013
Corporate
-
Held our first annual Research and Development Day: outlined
scientific rationale and clinical plans for each of our therapeutic
programs
-
Established a research collaboration with Eisai to discover
next-generation small molecule inhibitors of Wnt signaling
-
Presented data at the 2012 ASCO meeting from our biomarker diagnostic
development program
-
Added Richard S. Sackler, M.D., Chairman of Purdue Pharma, to our
Scientific Advisory Board
Second Quarter 2012 Financial Results
As of June 30, 2012, Verastem had cash, cash equivalents and investments
of $104.3 million compared to $56.8 million on December 31, 2011.
Net loss for the three months ended June 30, 2012, (the “2012 Quarter”)
was $6.8 million, or $0.34 per share applicable to common shareholders,
as compared to net loss of $2.5 million, or $2.03 per share, for the
three months ending June 30, 2011 (the “2011 Quarter”). Net loss
includes stock-based compensation expense of $1.5 million and $36,000
for the 2012 Quarter and 2011 Quarter, respectively.
Research and development expense for the 2012 Quarter was $4.7 million
compared to $1.7 million for the 2011 Quarter. The $3.0 million increase
from the 2011 Quarter to the 2012 Quarter principally resulted from an
increase of $1.2 million for personnel costs, including stock-based
compensation of $751,000, an increase of $1.1 million in contract
research organization expense, an increase of $365,000 in license fee
expense and an increase of $201,000 for laboratory supplies.
General and administrative expense for the 2012 Quarter was $2.2 million
compared to $759,000 for the 2011 Quarter. The $1.4 million increase
from the 2011 Quarter to the 2012 Quarter principally resulted from an
increase of $874,000 for personnel costs, including stock-based
compensation of $696,000, an increase of $318,000 in professional fees
primarily related to additional legal and accounting fees for being a
publicly traded company, an increase of $100,000 in insurance primarily
related to being a publicly traded company and an increase of $99,000 in
consulting fees.
About Verastem, Inc.
Verastem, Inc. (NASDAQ: VSTM) is a biopharmaceutical company focused on
discovering and developing drugs to treat breast and other cancers by
targeting cancer stem cells. Cancer stem cells are an underlying cause
of tumor recurrence and metastasis. For more information please visit www.verastem.com.
Forward-looking statements:
This press release includes forward-looking statements about the
Company’s strategy, future plans and prospects, including statements
regarding the development of the Company’s compounds, including VS-6063,
VS-4718, VS-5584 and the Company’s FAK, PI3K/mTOR, Wnt and diagnostics
programs generally, the timeline for clinical development and regulatory
approval of the Company’s compounds, the structure of the Company’s
planned clinical trials, including potential for a registration trial of
VS-6063, the Company’s rights to develop or commercialize its compounds,
the Company’s obligations to make milestone payments and royalties and
the ability of the Company to finance contemplated development
activities. The words “anticipate,” “believe,” “estimate,” “expect,”
“intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,”
“will,” “would,” “could,” “should,” “continue,” and similar expressions
are intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Each
forward-looking statement is subject to risks and uncertainties that
could cause actual results to differ materially from those expressed or
implied in such statement. Applicable risks and uncertainties include
the risks that the preclinical testing of the Company’s compounds may
not be predictive of the success of later clinical trials, that the
Company will be unable to successfully complete the clinical development
of its compounds, including VS-6063, VS-4718, and VS-5584, that the
development of the Company’s compounds will take longer or cost more
than planned, and that the Company’s compounds will not receive
regulatory approval or become commercially successful products. Other
risks and uncertainties include those identified under the heading “Risk
Factors” in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2011 and in any subsequent SEC filings. The forward-looking
statements contained in this presentation reflect the Company’s current
views with respect to future events, and the Company does not undertake
and specifically disclaims any obligation to update any forward-looking
statements.
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Verastem, Inc.
|
|
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(A development-stage company)
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Unaudited Selected Balance Sheet Information
|
|
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(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
Cash and cash equivalents
|
|
$
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15,751
|
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$
|
20,954
|
|
|
|
Short-term investments
|
|
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22,937
|
|
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26,857
|
|
|
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Working capital
|
|
|
35,984
|
|
|
44,795
|
|
|
|
Long-term investments
|
|
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65,599
|
|
|
8,994
|
|
|
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Total assets
|
|
|
105,664
|
|
|
59,037
|
|
|
|
Stockholders’ equity (deficit)
|
|
|
102,369
|
|
|
(12,766
|
)
|
|
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Verastem, Inc.
|
|
|
(A development-stage company)
|
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Unaudited Condensed Statements of Operations
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(in thousands, except per share amounts)
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|
|
|
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|
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|
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|
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Three months ended June 30,
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Six months ended June 30,
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2012
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2011
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|
2012
|
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2011
|
|
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Operating expenses:
|
|
|
|
|
|
|
|
|
|
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Research and development
|
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$
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4,683
|
|
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$
|
1,726
|
|
|
$
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9,486
|
|
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$
|
2,401
|
|
|
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General and administrative
|
|
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2,213
|
|
|
|
759
|
|
|
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4,338
|
|
|
|
1,230
|
|
|
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Total operating expenses
|
|
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6,896
|
|
|
|
2,485
|
|
|
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13,824
|
|
|
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3,631
|
|
|
|
|
|
|
|
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|
|
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Loss from operations
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|
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(6,896
|
)
|
|
|
(2,485
|
)
|
|
|
(13,824
|
)
|
|
|
(3,631
|
)
|
|
|
Interest income
|
|
|
71
|
|
|
|
-
|
|
|
|
128
|
|
|
|
-
|
|
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Net loss
|
|
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(6,825
|
)
|
|
|
(2,485
|
)
|
|
|
(13,696
|
)
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|
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(3,631
|
)
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|
|
|
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|
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Accretion of preferred stock
|
|
|
-
|
|
|
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(4
|
)
|
|
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(6
|
)
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
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Net loss applicable to common stockholders
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|
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($6,825
|
)
|
|
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($2,489
|
)
|
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($13,702
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)
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($3,639
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)
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|
|
|
|
|
|
|
|
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Net loss per share applicable to common stockholders–basic and
diluted
|
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($0.34
|
)
|
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($2.03
|
)
|
|
|
($0.79
|
)
|
|
|
($3.14
|
)
|
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Weighted-average number of common shares used in net loss per share
applicable to common stockholders-basic and diluted
|
|
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19,863
|
|
|
|
1,225
|
|
|
|
17,278
|
|
|
|
1,158
|
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Source: Verastem, Inc.
For Verastem, Inc.
Investor contact:
Brian
Sullivan, 617-252-9314
bsullivan@verastem.com
or
Media
contact:
Kari Watson, 781-235-3060
kwatson@macbiocom.com
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