Executive Summary

Q2 2022 delivered no revenue ($0.0M) as milestone-related receipts did not recur; operating expenses rose 30% year over year, driving a wider GAAP net loss of $21.95M ($0.12 per share) and non-GAAP adjusted net loss of $20.10M ($0.11 per share) .
Management highlighted encouraging interim efficacy from the RAMP 201 LGSOC trial (confirmed responses in both KRAS-mutant and KRAS wild-type; favorable safety with ~6% discontinuations) and will continue all four cohorts to allow data maturity before selecting a go-forward regimen .
Balance sheet remained solid with $94.3M in cash, cash equivalents and investments; company reiterated an expected cash runway until at least 2025, supported by an Oxford Finance facility and milestones/royalties from the COPIKTRA sale .
Near-term catalysts: RAMP 202 KRAS G12V NSCLC topline results and initiation of Part B (2H 2022), plus initial results from RAMP 203/204 KRAS G12C combinations; IP strengthened via a novel VS-6766 dosing regimen patent extending protection to 2038 .

What Went Well and What Went Wrong

What Went Well

RAMP 201 interim analysis showed confirmed responses in both monotherapy and combo arms across KRAS-mutant and KRAS wild-type LGSOC; safety remained favorable (~6% AE-related discontinuations). “We are encouraged by the anti-tumor activity… We look forward to evaluating a more mature data set to select the go forward regimen.” — Brian Stuglik, CEO .
Strategic validation and external support: Verastem received PanCAN’s first Therapeutic Accelerator Award to evaluate VS-6766 + defactinib with standard chemotherapy in first-line metastatic pancreatic cancer .
IP and program momentum: USPTO granted Patent No. 11,400,090 for intermittent twice-weekly dosing of VS-6766, extending protection through 2038; RAMP 202 (KRAS G12V NSCLC) and RAMP 203/204 (KRAS G12C combos) continued enrolling toward 2H 2022 readouts .

What Went Wrong

Revenue was $0.0M (vs $2.6M in Q1 2022 and $0.5M in Q2 2021), reflecting the absence of non-recurring milestone revenue; total operating expenses rose to $21.4M (+30% year over year), widening the GAAP net loss to $21.95M and non-GAAP adjusted net loss to $20.10M .
R&D spend climbed 54% year over year to $14.89M due to higher drug product/substance costs and CRO/investigator fees, pressuring near-term P&L without offsetting revenue streams .
Regimen selection in RAMP 201 delayed by data immaturity; with ~80% of patients still on treatment (median follow-up ~4 months), the decision will await additional accrual/maturity, extending the timeline to final regimen selection .

Financial Results

Metric	Q2 2021	Q1 2022	Q2 2022
Revenue ($USD Millions)	$0.5	$2.6	$0.0
Total Operating Expenses ($USD Millions)	$16.4	$19.6	$21.4
Research & Development ($USD Millions)	$9.73	$13.64	$14.89
Selling, General & Administrative ($USD Millions)	$6.71	$5.90	$6.51
Net Loss ($USD Millions)	$(16.90)	$(17.00)	$(21.95)
GAAP EPS ($USD)	$(0.10)	$(0.09)	$(0.12)
Non-GAAP Adjusted Net Loss ($USD Millions)	$(14.04)	N/A	$(20.10)
Non-GAAP Adjusted EPS ($USD)	$(0.08)	N/A	$(0.11)
Cash, Cash Equivalents & Investments ($USD Millions)	N/A	$106.3	$94.3

Notes:

Year over year: operating expenses +$5.0M; R&D +$5.16M; GAAP EPS loss widened by $0.02 .
Sequential (Q1 → Q2): revenue fell by $2.6M; operating expenses +$1.8M; GAAP EPS loss widened by $0.03 .

No segments or product revenue breakdown in Q2; revenue is primarily milestone/transition services when recognized .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Runway	Through 2025	“Expected cash runway through 2025” (with Oxford facility and COPIKTRA milestones)	“Cash runway until at least 2025” (supported by Oxford facility, expected milestones/royalties)	Maintained
RAMP 201 Regimen Selection	2H 2022+	Planned interim to inform selection	Selection timing driven by data maturity; continue all four cohorts; complete enrollment 2H 2022	Deferred (pending maturity)
RAMP 202 Topline/Part B	2H 2022	Topline Part A, initiate Part B in 2H 2022	Topline Part A and Part B initiation targeted for 2H 2022; regulatory discussions planned	Maintained
KRAS G12C Combo Readouts	2H 2022	Initial results expected 2H 2022	Initial results remain expected 2H 2022	Maintained

No numeric guidance was provided for revenue, margins, OpEx, OI&E, tax rate, or dividends in Q2 2022 .

Earnings Call Themes & Trends

Transcript for Q2 2022 was not available in our document set; themes are synthesized from press releases.

Topic	Previous Mentions (Q4 2021, Q1 2022)	Current Period (Q2 2022)	Trend
LGSOC RAMP 201 efficacy and safety	Enrollment complete in selection phase; planning for 2Q22 interim; Breakthrough Therapy Designation in LGSOC	Interim indicated confirmed responses in monotherapy and combo arms across KRAS-mutant and KRAS wild-type; favorable safety; regimen selection deferred pending data maturity	Positive efficacy reiterated; timeline extended due to immaturity
KRAS G12V NSCLC (RAMP 202)	Selection phase enrollment complete; preparing Part B and topline in 2H 2022	Topline Part A expected, initiate Part B, regulatory discussions in 2H 2022	On track
KRAS G12C combos (RAMP 203/204)	Opened/enrolling; initial results expected 2H 2022	Continued enrollment; initial results expected 2H 2022	On track
Pancreatic Cancer program	n/a	Received PanCAN Therapeutic Accelerator Award to evaluate VS-6766 + defactinib with SOC chemo in 1L metastatic pancreatic cancer	New positive development
IP/Patent	Financing and program updates; no patent detail	USPTO granted intermittent dosing patent for VS-6766; protection through 2038	Strengthened IP
Financing/Runway	Cash runway through 2025; Oxford facility up to $150M	“At least 2025” runway reiterated	Stable

Management Commentary

“In the second quarter, we announced findings from the interim analysis of our registration-directed RAMP 201 trial… and are encouraged by the anti-tumor activity that we have seen to date in patients with both KRAS mutant and KRAS wild-type tumors. We look forward to evaluating a more mature data set to select the go forward regimen.” — Brian Stuglik, CEO .
“We are encouraged by the positive anti-tumor activity… This interim analysis adds to our optimism about the potential for VS-6766 with or without defactinib and our commitment to advancing the first new treatment specifically developed and approved for women with low-grade serous ovarian cancer…” — Brian Stuglik, CEO (RAMP 201 update) .
Corporate progress: Patent grant for VS-6766 intermittent dosing regimen; PanCAN award to support first-line metastatic pancreatic cancer trial; continued enrollment across RAMP 202/203/204 .

Q&A Highlights

Earnings call transcript for Q2 2022 was not available in our document set; no direct Q&A excerpts could be verified. Primary investor topics inferred from releases: RAMP 201 regimen selection timing, RAMP 202 topline/Part B plans, KRAS G12C combo timelines, and cash runway .

Estimates Context

Wall Street consensus estimates via S&P Global for Q2 2022 were unavailable at the time of request due to service limits; therefore, comparative analysis versus consensus EPS/revenue is not included. If needed, we can refresh once access to S&P Global estimates is restored.

Key Takeaways for Investors

Execution remains clinical-data led: RAMP 201 showed confirmed responses across arms and genotypes; selection is deferred to allow robust data maturity—reduces binary risk but extends timeline .
Balance sheet is adequate for near-term milestones with $94.3M in cash and reiterated runway to at least 2025; Oxford facility provides contingent liquidity, but P&L remains dependent on milestone timing absent product revenue .
Near-term readouts (RAMP 202 Part A topline, KRAS G12C combos) are potential stock catalysts; strength of efficacy signal in KRAS G12V NSCLC could be particularly impactful if sustained .
IP strengthening (dosing patent to 2038) and PanCAN support broaden strategic optionality and defensibility around VS-6766’s regimen and combinations .
Expense trajectory reflects accelerated R&D (R&D +54% YoY), consistent with trial activity; absent milestones, quarterly losses may widen—expect continued earnings volatility tied to non-recurring revenues .
For trading: watch for press releases on RAMP 202 topline and any RAMP 201 regimen decision; updates may drive sentiment more than quarterly financials given development-stage status .

Sources: Q2 2022 Form 8-K and press release (including financial statements and non-GAAP reconciliation) ; RAMP 201 interim update (June 6, 2022) ; Verastem investor site Q2 2022 press release and Q1 2022 press release ; Q4 2021 press release .

Verastem, Inc. (VSTM)·Q2 2022 Earnings Summary