Verastem Oncology (Nasdaq: VSTM) has announced a debt refinancing agreement with Oberland Capital Management LLC, providing a credit facility of up to $150 million and a $7.5 million equity investment. This financial restructuring includes a strategic commercialization partnership with IQVIA to support the potential launch of the combination of avutometinib and defactinib in recurrent KRAS mutant low-grade serous ovarian cancer (LGSOC).
Financial Restructuring and Strategic Partnership
The agreement with Oberland Capital involves a private placement of 1,416,939 shares of Verastem's common stock at $5.2931 per share, totaling $7.5 million. Oberland also has the option to participate in future equity offerings up to $2.5 million. The initial $75 million from the notes and the equity investment will be used to repay the existing $42.7 million loan with Oxford Finance, which has been terminated. Verastem anticipates a pro-forma cash balance of $128.6 million as of December 31, 2024, after these transactions.
The collaboration with IQVIA is designed to leverage IQVIA's expertise and resources to accelerate key launch capabilities for the avutometinib and defactinib combination, while Verastem maintains strategic oversight.
Avutometinib and Defactinib Combination
Avutometinib is an oral RAF/MEK clamp that inhibits MEK1/2 kinase activities and induces inactive complexes of MEK with ARAF, BRAF, and CRAF, potentially leading to a more complete and durable anti-tumor response. Defactinib is an oral, selective inhibitor of focal adhesion kinase (FAK) and proline-rich tyrosine kinase-2 (Pyk2), which regulate cell proliferation, survival, migration, and invasion.
Verastem is currently conducting the RAMP 301 Phase 3 confirmatory trial (NCT06072781), evaluating the combination of avutometinib and defactinib versus standard chemotherapy or hormonal therapy for recurrent LGSOC. The FDA has granted Priority Review for the New Drug Application (NDA) for this combination, with a PDUFA date of June 30, 2025. The FDA also granted Breakthrough Therapy Designation in May 2021 and Orphan Drug Designation for the treatment of LGSOC.
Expansion of Pipeline: VS-7375
Verastem has exercised its option to license VS-7375 (GFH375), a KRAS G12D inhibitor, from GenFleet Therapeutics. Preliminary Phase 1 data from a study in China were also announced. This strategic move expands Verastem's pipeline of novel small molecule drugs targeting RAS/MAPK pathway-driven cancers.
Ongoing Clinical Trials and Collaborations
Verastem is also collaborating with Amgen to evaluate LUMAKRAS™ (sotorasib) in combination with avutometinib and defactinib in KRAS G12C mutant non-small cell lung cancer (NSCLC) as part of the RAMP 203 trial (NCT05074810). The FDA granted Fast Track Designation for this triplet combination in April 2024. Additionally, RAMP 205 (NCT05669482), a Phase 1b/2 clinical trial evaluating avutometinib and defactinib with gemcitabine/nab-paclitaxel in front-line metastatic pancreatic cancer, is supported by the PanCAN Therapeutic Accelerator Award. The FDA has also granted Orphan Drug Designation to the avutometinib and defactinib combination for pancreatic cancer.
