Home / Going-concern warnings / Verastem, Inc.
Filed 2026-03-04 路 Form 10-K 路 Accession 0001104659-26-023444 small
Price before filing: $5.68 (2026-03-03 close, split/dividend-adjusted)
Market cap at flag: $571.1M (2026-03-04) 路 Latest: $866.0M (2026-10-16)
| Window | VSTM | SPY | vs SPY | |
|---|---|---|---|---|
| 30 days | -3.5% | -2.9% | -0.6% | 2026-04-06 |
| 90 days | -32.9% | +12.0% | -44.9% | 2026-06-02 |
| 180 days | +27.1% | +13.3% | +13.8% | 2026-08-31 |
Return from the last close before the filing date to the first close on/after the window end. Pending windows have not fully elapsed. Past performance says nothing certain about the future.
90 days before the flag: 4 insiders sold $252K (13 sales)
30 days after: none reported.
| Date | Insider | Type | Shares | Price | Value | 10b5-1 plan | Source |
|---|---|---|---|---|---|---|---|
| 2025-12-04 | Paterson Dan President and CEO, Director | Sale | 2,000 | $10.00 | $20K | yes | Form 4 |
| 2025-12-05 | Paterson Dan President and CEO, Director | Sale | 2,000 | $10.61 | $21K | yes | Form 4 |
| 2025-12-08 | Paterson Dan President and CEO, Director | Sale | 2,000 | $10.50 | $21K | yes | Form 4 |
| 2025-12-09 | Paterson Dan President and CEO, Director | Sale | 2,000 | $10.25 | $20K | yes | Form 4 |
| 2025-12-10 | Paterson Dan President and CEO, Director | Sale | 2,000 | $10.07 | $20K | yes | Form 4 |
| 2025-12-11 | Paterson Dan President and CEO, Director | Sale | 2,000 | $10.00 | $20K | yes | Form 4 |
| 2025-12-16 | Gagnon Robert E. Director | Sale | 283 | $9.14 | $3K | yes | Form 4 |
| 2025-12-16 | Paterson Dan President and CEO, Director | Sale | 393 | $9.14 | $4K | yes | Form 4 |
| 2025-12-16 | Stuglik Brian M Director | Sale | 592 | $9.14 | $5K | yes | Form 4 |
| 2025-12-24 | Calkins Daniel Chief Financial Officer | Sale | 80 | $7.86 | $629 | yes | Form 4 |
| 2026-01-12 | Calkins Daniel Chief Financial Officer | Sale | 5,039 | $7.16 | $36K | yes | Form 4 |
| 2026-01-12 | Paterson Dan President and CEO, Director | Sale | 10,321 | $7.16 | $74K | yes | Form 4 |
| 2026-02-04 | Paterson Dan President and CEO, Director | Sale | 970 | $6.69 | $6K | yes | Form 4 |
| 2026-03-04: red flag filed | |||||||
Open-market purchases and sales (Form 4 codes P and S) by officers, directors and 10% owners, by transaction date, from 2025-12-04 to 2026-04-03. Excludes option exercises, grants, gifts and tax withholding. Amended filings replace the originals; joint filings count once. Foreign private issuers do not file Form 4. Many insider sales are pre-scheduled (10b5-1 plans) and are not by themselves a sign of wrongdoing.
"As of December 31, 2024, the Company had concluded that there was substantial doubt about its ability to continue as a going concern primarily due to anticipated operating losses for the foreseeable future since the Company did not yet have regulatory approval to sell any of its product candidates, and the Company continued to incur operating costs to execute its strategic plan, including costs related to research..."
Quoted from the filing. Source
The filing states that substantial doubt exists about the company's ability to continue as a going concern: it may not have enough cash to last the next 12 months. Expect dilution, debt deals or worse. An auditor's going-concern paragraph is the strongest form of this warning.
Going-concern opinion issued by: Ernst & Young LLP
Source: independent auditor report in Form 10-K (period 2025-12-31)
Why this score: in auditor's report
Read the original filing on SEC.gov →
Not investment advice. Automated summary; verify against the filing.
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