Analyst Conference Summary

biotechnology

conference date: August 6, 2026 @ 1:30 PM Pacific Time
for quarter ending: June 30, 2026 (second quarter, Q2 2026)

Forward-looking statements

Overview: Product revenue ramp accelerated.

Basic data (GAAP):

Revenue was $40.1 million, up sequentially from $18.7 million and up from $2.1 million in the year-earlier quarter.

Net Income was negative $34.7 million, up sequentially from negative $37 million, and down from negative $25.9 million year-earlier.

EPS (Earnings per Share), diluted, were negative $0.35, up sequentially from negative $0.46, and up from negative $0.62 year-earlier.

Guidance:

Cash runway into 2H 2027.

Conference Highlights:

CEO Dan Paterson said, "The second quarter marked meaningful progress across our commercial business and pipeline programs, with strong quarter-over-quarter growth for Avmapki Fakzynja Co-pack driven by new patient starts and increased refills. In the first-half clinical update for VS-7375, we demonstrated encouraging activity across multiple KRAS G12D-driven tumors, including pancreatic, colorectal, and non-small cell lung cancers. VS-7375 demonstrated dose-dependent anti-tumor activity, favorable PK supporting target exposure, and a manageable safety and tolerability profile without many of the on-target toxicities seen with panRAS approaches. With the first patients dosed across our three registration-directed Phase 2 trials, we expect to complete enrollment by year-end. We remain focused on advancing what we believe is a differentiated KRAS G12D inhibitor with the potential to fundamentally change outcomes and the treatment experience for patients with KRAS G12D-driven cancers, and we look forward to sharing additional clinical data in October. . . The incremental $90 million in non-dilutive funding strengthens our balance sheet and allows us to get beyond key data read outs, continue evaluating strategic partnerships, and preserve strategic flexibility as we evaluate future financing opportunities." Most of the jump in Q2 revenue was from $15 million sale of Copiktra license.

Believes LGSOC business will be self-sustaining by the end of 2026.

Seeing consistent new patient starts and repeat prescibing. Copack prescribers increased in Q2 2026. Saw some discontinuations from patients who were sicker than those in the study. Managing adverse events is also important to renewals. Establishing the co-pack as first therapy at LGSOC recurrence. Physicians are becoming more confident in the therapy.

In May 2026, the Phase 1/2 VS-7375 study continued at the 1200 mg. dose. Preliminary data cleared 400mg through 900mg doses with no dose-limiting toxicities. The FDA granted Fast Track for metastatic adenocarcinoma of the pancreas (PDAC) and for the treatment of patients with KRAS G12D-mutated locally advanced or metastatic PDAC who have received at least one prior line of standard systemic therapy. Also in Q2 2026, with FDA feedback, Phase 2 trials are underway, with first dosing expected in mid-2026, separately for KRAS G12D mutated 2L pancreatic ductal adenocarcinoma (PDAC) and 2L/3L non-small cell lung cancer (NSCLC) (monotherapy) and 2L+ colorectal cancer (CRC) in combination with cetuximab.

In Q2 2025 Avutometinib plus Defactinib in combination with chemotherapy in first-line metastatic PDAC, in the Phase 1/2 trial, reported a dose level 1 ORR of 83%. Enrollment was completed in Q3 2025, with a data update expected in 1H 2026.

In June 2026 Verastem updated data from RAMP 205 trial of avutometinib plus defactinib and chemotherapy for first-line metastatic pancreatic ductal cancer (PDAC). Trial achieved a 52% confirmed objective response rate (cORR), with both an 86% overall survival rate and 68% progression-free survival rate at six months.

In July 2026 reported updated avutometinib plus defactinib data for 16 patients with recurrent low-grade Serous ovarian cancer (LGSOC), at 12 month follow up. 44% overall response rate and a 94% disease control rate

Net product revenue (Avmapki and Fakzynja (co-pack)) was $25.1 million, up 34% sequentially from $18.7 million. A confirmatory Phase 3 trial is underway with enrollment completed in Q1 2026. A topline readout of the confirmatory RAMP 301 trial is expected in mid-2027. A new marketing campaign launched in April 2026. The combination of Avmapki and Fakzynja (co-pack) was approved by the FDA on May 8, 2025 for adults with KRAS-mutated recurrent low-grade serous ovarian cancer (LGSOC), who have received a prior therapy.

Genfleet continued to evaluate VS-7375 (GFH375) in China. For KRAS G12D cancers. In Q2 or early Q3 2026 first patients were dosed in three Phase 2 trials evaluating 2L PDAC, 2L/3L NSCLC, and 2L CRC. Updated data is expecte in October 2027. In December 2025 a Phase 3 study in pretreated KRAS mutated metastatic pancreatic cancer was initiated. Additional data for PDAC announced in Q4 2025 was positive. In China partner in 2026 GFH375 was granted Breakthrough therapy designation in second line metastatic pancreatic cancer and in second line NSCLC. There VS-7345 is called GFH375. Verastem plans to meet with the FDA before the end of 2026 to review Phase 3 pivotal trial designs in 1L mPDAC, 1L mCRC, and 1L advanced NSCLC. First patient enrollment in each trial planned for 1H 2027.

Verastem received $15.0 million from sale of Copiktra license and related assets revenue in Q2 2026. This was due upon Secura achieving cumulative worldwide net sales exceeding $200.0 million.

Cash and equivalents ended at $136 million, down sequentially from $182 million. Long term debt was $74 million. In Q3 non-dilutive royalty financing agreement with Oberland Capital to provide up to $75 million in cash, including $50 million at closing.

Non-GAAP net income was negative $31 million, up sequentially from negative $43 million, and up from negative $41 million year-earlier. Non-GAAP diluted EPS was negative $0.31, up sequentially from negative $0.43, and up from negative $0.62 year-earlier. Note share count increased from about 66 million to about 100 million.

Total operating costs were $73 million. Cost of sales $4 million, R&D $41 million, SG&A $27 million. Loss from operations $33 million. Other expense $0 million. Interest income net $1 million. Change in fair value of warrant liability $0 million. Change in fair value of notes down $2 million.

Q&A selective summary:

7375 partnership activity? Work on Arasca potential partnership. What roles would be. We have had considerable inbound interest. G12D data has spurred additional interest. Judgment call on how early or late you do the partnership. New funding has given us strategic flexibility.

Gross margins? Current run rate is reasonable. Cost of sales is royalty based.

7375 October update? Bar for best in class? 24% response rate for competitor's accelerated approval was good. 30% goal for us is very good. Easy to take v. difficult is also important.

Genfleet ORR translatability to US? We do get compared all the time. Benchmark will be comparison to US products. We believe hitting the target really hard will translate to depth of response.

Copack sales, new starts, duration? Increase was a combination of new prescribers, new starts and longer durations.

New patient starts turn into refills very quickly. We see starts in both academic and community settings.

Our KRAS G12D gets more consistent and longer responses that competitors as it can be increased in dose without side effects. We should see this in the October clinical data.

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