Verastem Oncology Reports 50% Response Rate for VS-7375 in Pancreatic Cancer, Raises $250 Million and Names New CEO

Verastem Oncology delivered a busy Wednesday on multiple fronts, reporting strong early clinical data for its oral KRAS G12D inhibitor VS-7375, pricing a $250 million equity offering, and announcing a CEO succession. The Phase 1/2a trial showed a 50% confirmed objective response rate in second-line pancreatic ductal adenocarcinoma, with two complete responses also observed in later-line disease. In non-small cell lung cancer, 43% of 23 previously treated patients receiving the 600 mg daily dose showed confirmed responses. The FDA has also aligned with Verastem on a Phase 3 design, clearing the path toward a pivotal study.

To fund that expansion, Verastem priced an underwritten offering of 30.94 million shares at $8 each and pre-funded warrants covering an additional 310,000 shares at just under $8, together raising approximately $250 million. The company also named Michael P. Bailey as incoming President and CEO, replacing Daniel Paterson, who is retiring after a 35-year career in biopharma and will remain on the board as an advisor. Shares were up roughly 7.9% in pre-market trading.

Elsewhere in biotech, Viking Therapeutics formally launched its Phase 3 obesity program for oral VK2735, initiating two trials, SUNRISE-1 and SUNRISE-2, each targeting enrollment of 560 adults with a primary endpoint of percent change in body weight from baseline versus placebo after 68 weeks. The oral formulation of VK2735 puts Viking squarely in competition with injectable GLP-1 leaders in what has become one of the most contested segments of drug development.

Vir Biotechnology surged 11.1% in pre-market trading after announcing a multi-program collaboration with Gilead Sciences to develop novel PRO-XTEN dual-masked T-cell engagers for solid tumors. Vir receives $90 million upfront, consisting of $65 million in cash and a $25 million equity investment at a 30% premium. The deal is the second built around Vir's proprietary PRO-XTEN masking technology, which is designed to selectively activate cancer-killing T-cell engagers within the tumor microenvironment.

Arrowhead Pharmaceuticals also moved sharply higher, up 5.5% pre-market, after reporting that its investigational RNAi therapy ARO-MAPT reduced tau levels by 73% in early Alzheimer's disease trial data. UltraRare sold a rare pediatric disease priority review voucher for $203 million. Atara Biotherapeutics received FDA acceptance of its BLA resubmission for tabelecleucel, with a PDUFA date of March 31, 2027. Verastem rival Liquidia reached a settlement with United Therapeutics, a development Investor's Business Daily noted sent one of the two stocks sharply higher. Generate Biomedicines and Zealand Pharma announced an AI-based drug discovery deal, while Scinai Immunotherapeutics disclosed a $4 million financing round that sent its shares tumbling.