Verastem, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Verastem, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

Verastem, Inc. (VSTM) filed a Annual Report (10-K) with the SEC on March 14, 2024. Verastem, Inc. filed its 2023 Form 10-K on March 14, 2024. The company's fiscal year ends on December 31st. Verastem, Inc. is incorporated in Delaware. The company's business and mailing address is 117 Kendrick Street, Suite 500, Needham, MA 02494. The business phone number is (781) 292-4200.

Why It Matters

For investors and stakeholders tracking Verastem, Inc., this filing contains several important signals. This filing provides a comprehensive overview of Verastem's financial health, strategic initiatives, and risk factors for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's performance, understand its market position, and make informed investment decisions.

Risk Assessment

Risk Level: medium — Verastem, Inc. shows moderate risk based on this filing. The company operates in the pharmaceutical preparations industry (SIC 2834), which is subject to significant regulatory oversight, clinical trial risks, and market competition, as indicated by the nature of its business and the typical risks associated with drug development and commercialization.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Verastem's current financial position and future outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-03-14 — Filing Date (Filed as of Date)
• 108 — Public Document Count (Number of documents in the filing)
• 273269467 — IRS Number (Filer's IRS Number)

Key Players & Entities

• Verastem, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• 0001558370-24-003250 (other) — Accession Number
• Needham, MA (location) — Business address city and state
• 02494 (other) — Business address zip code
• DE (location) — State of incorporation
• 2834 (other) — Standard Industrial Classification
• 001-35403 (other) — SEC File Number

FAQ

Industry Context

Verastem, Inc. operates in the pharmaceutical preparations industry, focusing on the development and commercialization of cancer therapies.

Regulatory Implications

Companies in the pharmaceutical sector are subject to stringent regulations from bodies like the FDA regarding drug development, approval, and marketing.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year ended December 31, 2023.
2. Review the business description and risk factors to understand Verastem's operational landscape.
3. Examine any disclosed legal proceedings or regulatory matters.

Year-Over-Year Comparison

This is the initial filing analyzed for the fiscal year 2023.

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value VSTM The Nasdaq Capital M
• $3.8 million — tic Cancer Network ("PanCAN") for up to $3.8 million. The grant is expected to support a Pha
• $0.5 million — agreed to provide us with an additional $0.5 million for the collection and translational an

Filing Documents

• vstm-20231231x10k.htm (10-K) — 2808KB
• vstm-20231231xex21d1.htm (EX-21.1) — 2KB
• vstm-20231231xex23d1.htm (EX-23.1) — 15KB
• vstm-20231231xex31d1.htm (EX-31.1) — 10KB
• vstm-20231231xex31d2.htm (EX-31.2) — 10KB
• vstm-20231231xex32d1.htm (EX-32.1) — 6KB
• vstm-20231231xex32d2.htm (EX-32.2) — 6KB
• vstm-20231231xex97d1.htm (EX-97.1) — 46KB
• vstm-20231231xex99d1.htm (EX-99.1) — 248KB
• vstm-20231231x10k003.jpg (GRAPHIC) — 72KB
• vstm-20231231x10k004.jpg (GRAPHIC) — 46KB
• vstm-20231231xex99d1002.jpg (GRAPHIC) — 5KB
• 0001558370-24-003250.txt (&nbsp;) — 12766KB
• vstm-20231231.xsd (EX-101.SCH) — 85KB
• vstm-20231231_cal.xml (EX-101.CAL) — 75KB
• vstm-20231231_def.xml (EX-101.DEF) — 466KB
• vstm-20231231_lab.xml (EX-101.LAB) — 708KB
• vstm-20231231_pre.xml (EX-101.PRE) — 658KB
• vstm-20231231x10k_htm.xml (XML) — 2030KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 36 Item 1B. Unresolved Staff Comments 74 Item 1C. Cybersecurity 74 Item 2.

Properties

Properties 75 Item 3.

Legal Proceedings

Legal Proceedings 75 Item 4. Mine Safety Disclosures 75 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuers Purchases of Equity Securities 76 Item 6. Reserved 77 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 78 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 89 Item 8. Consolidated Financial Statements and Supplementary Data 89 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 90 Item 9A.

Controls and Procedures

Controls and Procedures 90 Item 9B. Other Information 91 Item 9C. Disclosure Regarding Foreign Jurisdictions 91 PART III Item 10. Directors, Executive Officers and Corporate Governance 91 Item 11.

Executive Compensation

Executive Compensation 91 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 91 Item 13. Certain Relationships and Related Transactions, and Director Independence 91 Item 14. Principal Accountant Fees and Services 92 PART IV Item 15. Exhibits and Financial Statement Schedules 93 Item 16. Form 10-K Summary 93 EXHIBIT INDEX 94

SIGNATURES

SIGNATURES 98 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements related to present facts or current conditions or historical facts, contained in this Annual Report on Form 10-K, including statements regarding our strategy, future operations, future financial position, including our ability to continue as a going concern through one year from the date of the audited financial statements for the year ended December 31, 2023, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. Such statements relate to, among other things, the development and activity of our programs and product candidates, avutometinib (rapidly accelerated fibrosarcoma ("RAF")/ mitogen-activated protein kinase kinase ("MEK") program) and defactinib (focal adhesion kinase ("FAK") program), the structure of our planned and pending clinical trials, the potential clinical value of our clinical trials, and the timeline and indications for clinical development, regulatory submissions and commercialization of 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. Forward-looking statements are not guarantees of future performance and our actual results could differ materially from the results discussed in the forward-looking statements we make. Applicable risks and uncertainties include the risks and uncertainties, among other things, regarding: the success in the development and potential commercialization of our product candidates, including avutometinib in combination with other compounds, including defactinib, LUMAKRAS and others; the uncertain

Business

Item 1. Business OVERVIEW We are a late-stage development biopharmaceutical company, with an ongoing registration directed trial, committed to advancing new medicines for patients battling cancer. Our pipeline is focused on novel anticancer agents that inhibit critical signaling pathways in cancer that promote cancer cell survival and tumor growth, particularly RAF/MEK inhibition and FAK inhibition. Our most advanced product candidates, avutometinib and defactinib, are being investigated in both preclinical and clinical studies for the treatment of various solid tumors, including, but not limited to low-grade serous ovarian cancer ("LGSOC"), non-small cell lung cancer ("NSCLC"), pancreatic cancer, colorectal cancer ("CRC"), and melanoma. We believe that avutometinib may be beneficial as a therapeutic, as a single agent or when used together in combination with defactinib, other agents, other pathway inhibitors, or other current and emerging standard of care treatments in cancers that do not adequately respond to currently available therapies. Avutometinib is an orally available first-in-class unique small molecule RAF/MEK clamp that inhibits the ras sarcoma ("RAS")/RAF/MEK, ERK mitogen activated pathway kinase ("MAPK") pathway which is involved in cell proliferation, migration, transformation, and survival of tumor cells. In contrast to other MEK-only inhibitors, avutometinib is a dual RAF/MEK clamp that blocks MEK kinase activity and induces th e fo rmation of dominant negative RAF-MEK complexes preventing phosphorylation of MEK by A-Raf proto-oncogene, serine/threonine kinase ("ARAF"), B-Raf proto-oncogene serine/threonine kinase ("BRAF") and C-raf proto-oncogene serine/threonine kinase ("CRAF"). MEK-only inhibitors (e.g. trametinib) may have limited efficacy because they induce MEK phosphorylation ("pMEK") by relieving extracellular-signal-regulated-kinase ("ERK")-dependent feed back inhibition of RAF. By inhibiting RAF-mediated phosphorylation of MEK, av

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View this 10-K filing on SEC EDGAR