A biopharmaceutical company focused on fighting cancer, Verastem makes AVMAPKI FAKZYNJA CO-PACK (avutometinib/defactinib), a treatment for a rare form of ovarian cancer called low-grade serous ovarian cancer that received accelerated FDA approval in 2025. It's also developing VS-7375, an oral drug aimed at tumors driven by a common KRAS mutation. Based in the US, the company concentrates on the RAS/MAPK pathway, a key driver in many cancers.
AVMAPKI FAKZYNJA CO-PACK revenue more than doubled sequentially to $25.1M, but a 67% increase in R&D spending deepened going-concern doubt.
Product more than doubled from the prior quarter. Total revenue reached $40.1 million, including a $15.0 million COPIKTRA milestone, while the net loss was $34.7 million as R&D expense rose 67% to $41.3 million to fund three new Phase 2 trials for VS-7375. The company has $136.4 million in cash but says it may not be enough to keep operating.
Key takeaways
Net product from the AVMAPKI FAKZYNJA CO-PACK rose to $25.1 million in Q2 2026, up from $18.7 million in Q1 2026 and $2.1 million in the year-ago quarter, its fourth full quarter on the market.
Total of $40.1 million also included a $15.0 million milestone payment triggered when cumulative worldwide net sales of COPIKTRA exceeded $200 million under the Secura agreement.
R&D expense increased 67% to $41.3 million, driven primarily by a $14.4 million rise in clinical trial costs for the VS-7375 TARGET-D program, which initiated three Phase 2 trials in the prior quarter.
Section summaries
Management's Discussion and Analysis
AVMAPKI FAKZYNJA CO-PACK revenue ramped to $25.1M in Q2 2026, while R&D expense surged 67% driven by VS-7375 clinical trials.
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Net product from AVMAPKI FAKZYNJA CO-PACK reached $25.1 million in Q2 2026, up from $2.1 million in Q2 2025, following its May 2025 U.S. launch.
Total also included a $15.0 million milestone from the sale of the COPIKTRA license, triggered by cumulative worldwide net sales exceeding $200 million.
SG&A expense grew 33% to $27.4 million, reflecting higher commercial operations and personnel costs to support the ongoing product launch.
Management reiterated substantial doubt about the company's ability to continue as a within one year, citing increased R&D spending from the new Phase 2 trials that outpaces current cash resources.
Cash, cash equivalents, and investments totaled $136.4 million at quarter-end, down from $181.7 million at the end of Q1 2026, with $43.9 million used in operations during the quarter.
What changed
The prior quarter flagged AVMAPKI FAKZYNJA CO-PACK trajectory as a key watch item: net product revenue rose 34% sequentially to $25.1 million from $18.7 million, showing continued growth in the launch's fourth full quarter.
The prior quarter noted that the initiation of three TARGET-D Phase 2 trials for VS-7375 significantly increased projected R&D costs and deepened going-concern doubt; this quarter, VS-7375 clinical trial costs rose by $14.4 million, making it the single largest driver of the 67% increase in R&D expense.
Cash, equivalents, and investments fell to $136.4 million from $181.7 million at the end of Q1 2026, a 25% sequential decline, as operating cash outflow widened to $43.9 million from $52.1 million in the prior quarter but remained elevated.
The $15.0 million COPIKTRA milestone recognized this quarter was not flagged as probable in any prior filing; it represents the second sales milestone earned under the Secura agreement, following a $10.0 million milestone in Q2 2024.
What to watch
AVMAPKI FAKZYNJA CO-PACK net product in Q3 2026 to assess whether the sequential growth rate is sustained as the launch matures beyond its first year.
Cash, equivalents, and investments balance against the $136.4 million reported at June 30, 2026, and any financing raised to address the stated going-concern doubt as R&D spending rises with the TARGET-D trials.
Enrollment progress and any early data readouts from the TARGET-D 201, 202, and 203 trials for VS-7375, which now represent the largest driver of increased projected R&D costs.
Topline progression-free survival data from the RAMP 301 confirmatory trial, expected in mid-2027, which will determine whether the AVMAPKI FAKZYNJA CO-PACK's converts to full approval.
Research and development expense increased 67% to $41.3 million, primarily due to a $14.4 million rise in VS-7375 clinical trial costs for the TARGET-D program.
Selling, general and administrative expense grew 33% to $27.4 million, driven by higher commercial operations and personnel costs to support the product launch.
Management has raised substantial doubt about the company's ability to continue as a , citing increased R&D spending from new Phase 2 trials that outpaces current cash resources.
Cash, cash equivalents, and investments totaled $136.4 million as of June 30, 2026, with a net loss of $34.7 million for the quarter.
Substantial doubt exists about the company's ability to continue as a going concern within one year.
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Management has concluded there is substantial doubt about the company's ability to continue as a going concern within one year after the financial statement issuance date.
The company requires additional financing to execute its operating plan and may not be able to raise capital on favorable terms or at all.
Historical and anticipated future operating losses are driven by commercialization costs for AVMAPKI FAKZYNJA CO-PACK and R&D for product candidates.
Potential liquidity sources include product revenues, milestones from the Secura APA, the Note Purchase Agreement, or other strategic financings, but none are deemed probable to alleviate the going concern doubt.
Failure to raise capital could force the company to delay, reduce, or eliminate commercial and R&D activities, or cease operations entirely.