BUZZ - Verastem stock surges on encouraging cancer drug data; Bailey succeeds Patterson as CEO

October 14 - ** Shares of cancer drug manufacturer Verastem (VSTM.O) rose 15.3% in premarket trading to $8.6

** The company stated its experimental drug (link) VS-7375 reduced tumors in patients with various advanced pancreatic and colorectal cancers during early to mid-stage clinical trials

** After consultations with the U.S. Food and Drug Administration (FDA), VSTM plans to launch late-stage clinical trials for pancreatic cancer by the end of 2026

** Additionally, the company announced that Daniel Paterson will step down (link) as CEO and president after 15 years at VSTM; Michael P. Bailey will succeed him in the role

** VSTM raised its third-quarter net product revenue forecast to $23.9 million to $24.1 million, higher than $11.2 million in the same period last year—according to U.S. Securities and Exchange Commission (SEC) filings

** The company publicly offered 30.94 million shares of common stock at $8 per share, raising $250 million (link); the offering price is a 7.4% premium over the previous trading day's closing price of $7.45

** All 10 brokerages gave the stock a "Buy" or higher rating; the median target price is $14

** As of the previous trading day's close, the stock had fallen 3.5% year-to-date

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