Baker Bros. Advisors 13F: New $2.2M Stake in Verastem (VSTM)

Baker Bros. Advisors established a brand-new stake in cancer-focused biotech company Verastem, Inc. (NASDAQ: VSTM). According to a regulatory filing for the period ending May 15, 2026, the fund acquired 584,757 shares of the biotechnology firm. The newly initiated position was valued at $2,233,771.70 at the time of the filing.

Baker Bros. Enters Verastem at a Higher Price Point

The healthcare-focused investment fund bought into Verastem with an average cost basis of $6.26 per share. Because this is a brand-new position for Baker Bros. Advisors, there is no previous share count to compare it to. This purchase represents a fresh bet on the Massachusetts-based biotechnology developer, though the stock has faced downward pressure since the reporting period closed.

Verastem Stock Slides Since the Spring Filing

On Sunday, Verastem stock was trading at $3.82. That price is down significantly from the $6.26 cost basis Baker Bros. paid during the period ending in mid-May. The stock has been trading in a wide 52-week range of $3.43 to $10.82. The stock is currently trading under its 50-day moving average of $6.79 and its 200-day moving average of $6.13.

Recent Earnings and Financial Metrics

For its latest financial period, Verastem reported revenue of $87,526,000.0, showing a revenue growth rate of 17.754%. However, the biotech firm is still in its development stage and is not currently profitable. It posted an earnings per share (EPS) of -$2.44, with a negative return on equity of -4.7116103% and a net margin of -2.31586. Investors are keeping an eye on the company's next earnings report, scheduled for November 3, 2026.

Insider Buying and Selling at Verastem, Inc.

Following the timeline of Baker Bros.' purchase, there has been some activity from company executives. On June 22, 2026, Chief Financial Officer Daniel Calkins sold 4,089 shares of company stock. The transaction was valued at $17,089.16, with the shares sold at an average price of $4.18. This sale was set up in advance under a pre-arranged Rule 10b5-1 trading plan, which executives often use to sell shares automatically at set intervals.

Wall Street Analysts Keep High Price Targets

Even with the stock's recent decline, Wall Street analysts remain highly optimistic. On October 16, 2026, Mizuho maintained its Outperform rating and raised its price target to $14.0 from $13.0. A day earlier, on October 15, 2026, Jefferies kept its Buy rating and raised its target from $11.0 to $13.0, while RBC Capital maintained its Outperform rating, boosting its target from $14.0 to $19.0. BTIG also kept its Buy rating on October 15, 2026, lifting its target from $18.0 to $24.0, following its earlier reiterations of an $18.0 target on October 5 and October 8. Back on September 17, 2026, Wolfe Research initiated coverage on Verastem with an Outperform rating. Across nine analyst opinions, the stock carries a consensus recommendation of "strong_buy" with a mean price target of $14.67.

Developing Cancer Treatments in Needham

Verastem is a development-stage biopharmaceutical company headquartered in Needham, Massachusetts. The company focuses on creating oral cancer drugs, specifically targeting pathways commonly activated in solid tumors and recurrent low-grade serous ovarian cancer. Its pipeline includes drug candidates like Avutometinib and Defactinib, which are being tested in multiple clinical studies and collaborative trials with larger pharmaceutical partners.

What to Watch at Verastem, Inc.

Market observers will want to see if Baker Bros. Advisors maintains or adjusts this position in subsequent filings. The upcoming earnings release on November 3, 2026, will provide crucial updates on Verastem's clinical trials and cash burn. Keep in mind that 13F filings are backward-looking reports that show what institutional investors held at the end of a specific quarter, so they do not show real-time portfolio changes.