It has been almost three months since the coronavirus-driven volatility hit the global economy, and the market continues to rapidly move into both the green and the red. Yet, since its March 16 low, the S&P 500 has come a long way, rising nearly 18%. Wall Street pros remind investors that one area of the market has performed significantly better than the S&P 500: the biotech sector. As a result, names inhabiting this space have found themselves under the Street’s microscope.Having said that, there is something to consider when making these investment decisions. Biotech stocks are especially volatile due to the characteristics of the industry itself. For these companies, there are only a few key indicators like study results or regulatory approvals to determine whether or not sustainable revenues are on the horizon. As a result, a favorable outcome can act as a catalyst that sends shares flying out of the ballpark. For this reason, risk-tolerant investors flock to these stocks. However, biotech stocks are famous for being risky as the opposite also holds true.This makes it difficult to separate the biotechs with massive growth prospects from those poised to strike out. Don’t worry, Wall Street analysts can lend a hand with that.During our search for compelling biotech stocks, we turned to the analysts for help. Using TipRanks’ database, we found exactly what we were looking for: three Buy-rated biotech stocks trading for under $4 with massive upside potential. We are talking returns of at least 50% over the next months.Osmotica Pharmaceuticals (OSMT)Osmotica Pharmaceuticals boasts a diverse product portfolio that addresses needs in the specialty neurology and women's healthcare space, with it also developing non-promoted complex formulations of generic drugs. Following a strong quarter in which it held up well despite COVID-19's impact, at $3.86 apiece, several members of the Street think now is the time to snap up shares.Weighing in for RBC Capital, analyst Randall Stanicky tells investors he is optimistic ahead of the July 16 PDUFA date for its lead candidate, RVL-1201 (blepharoptosis). The company still plans on launching the product right after the PDUFA, with pricing expected to be in the $75-$100 range. It should be noted that COVID-19 has forced OSMT to scale down the launch and the initial sales force. That being said, the company has a new plan. The launch will instead be more “controlled” and kick off with a core group of KOLs and other eye care professionals, with it ramping up after more states and practices reopen.Stanicky fully supports this approach, noting that the strategy “makes sense." “The U.S. is unlikely to have returned to normal by mid-summer, which is reason enough for caution. And importantly, OSMT has a diversified book of business (and liquidity) that reduces the urgency to launch. We might also add that a ‘soft’ launch keeps the door open to a potential U.S. therapeutic partnership, adding further optionality,” the analyst explained.As for the aesthetics opportunity, the approach is very similar. Stanicky points out that while OSMT has a few potential partners lined up, it isn’t in a rush to finalize the decision. “Either way, we think there could be strong demand for RVL-1201 from aesthetics providers as a complementary offering to facial toxins/fillers (and as a way to help make up for lost revenue due to COVID-19). OSMT also expressed interest in adding additional eye care or aesthetics offerings to leverage its commercial infrastructure, while potentially divesting non-core assets (eg. Women's Health),” the analyst commented.If that wasn’t enough, Stanicky cites the Ontinua ER (arbaclofen) NDA re-submission, which is slated for June, as well as the potential for both U.S. and international partnerships for RVL as possibly representing additional catalysts for shares.Taking all of this into consideration, Stanicky reiterates an Outperform (i.e. Buy) rating on OSMT stock, along with a $10 price target. Should this target be met, a twelve-month gain of 159% could be in store.Turning now to the rest of the Street, other analysts also like what they’re seeing. 3 Buys and a single Hold have been assigned in the last three months, making the consensus rating a Strong Buy. While less aggressive than Stanicky’s, the $8 average price target still leaves room for 107% upside potential. (See Osmotica stock analysis on TipRanks)Iterum Therapeutics (ITRM)With at least two million people infected with bacteria that’s resistant to antibiotics every year in the U.S., Iterum Therapeutics develops differentiated anti-infectives to combat these multi-drug resistant (MDR) pathogens. As the data readouts for its SURE 1/2 trial are expected any day now, the analyst community is telling investors to pull the trigger before its $3.45 share price goes up.Previously, ITRM landed in some hot water after announcing at the end of March that the data release would be pushed back until early in the second quarter. However, RBC Capital analyst Gregory Renza believes the delay is “unsurprising given the quick development of COVID-19 and how the company has been framing their progress and study wrap-up over this month.”"Today's update mirrors our recent conversation with management as active COVID-19 assessments have been underway where, given enrollment had already wrapped, the impact was initially viewed as minimal, but the coronavirus has affected the process of final data staging by a few weeks - we consider it as reasonable given the various restrictions under the macro-environment," Renza added.After the data is released, management stated it doesn’t foresee any delays for the NDA filing, given that the manufacturing sites were approved by the FDA before COVID-19 and the clinical module could be prepared after the SURE trial readouts. Offering further explanation, Renza said “If positive, ITRM believes that they could make a swift transition into the next phase of development, and believes that the current supply of sulopenem would be sufficient for the first year of launch.”It should come as no surprise, then, that Renza has high hopes for this biotech. To this end, he kept both an Outperform call and $8 price target on the stock. This target conveys the five-star analyst’s confidence in ITRM’s ability to soar 132% in the next year. (To watch Renza’s track record, click here)Do other analysts agree with Renza? As it turns out, they do. With 100% Street support, or 3 Buy ratings to be exact, the message is clear: ITRM is a Strong Buy. In addition, the $8 average price target matches Renza’s. (See Iterum stock analysis on TipRanks)Verastem, Inc. (VSTM)Focused on developing small molecule drugs that inhibit critical signaling pathways that promote cancer cell survival and tumor growth, Verastem believes its approach could potentially help stomp out cancer. With clinical and regulatory updates slated for late 2020, some analysts think that its $1.76 share price represents a compelling entry point.On April 27, VSTM presented the most updated results from the ongoing investigator-sponsored Phase 1 study of VS-6766, which was formerly known as CH5126766, in combination with defactinib for the treatment of KRAS mutant solid tumors. The company acquired the candidate, a RAF/MEK dual inhibitor, back in January from Chugai Pharmaceuticals. As the asset could overcome key resistance mechanisms seen with traditional MEK inhibitors such as Mekinist, it’s no wonder Wall Street focus has locked in on this biotech.Among the bulls is H.C. Wainwright analyst Sean Lee. He argues that the most encouraging outcomes were seen in eight patients with low-grade serous ovarian cancer (LGSOC). Four demonstrated a response to the therapy and all eight patients achieved disease control. Additionally, the therapy generated a response from 67% of the participants with KRAS mutant tumors, with three of the four responding patients having previously failed MEK inhibitor therapy. Not to mention the dose exhibited a strong safety profile and was well-tolerated.Expounding on this, Lee stated, “Considering that LGSOC is an orphan indication with less than 1,000 patients diagnosed in the U.S. each year and has no specific approved therapy, we believe that these results are highly relevant and could lead to an accelerated path to approval. According to management, the company plans to meet with the FDA in 1H20 to discuss the path forward, and we believe the company could initiate a registrational study in LGSOC in late-2020.”That being said, when it comes to VS-6766's use in KRAS mutant non-small cell lung cancer (NSCLC), the results varied much more across the board. The response rate was significantly lower than what is produced by KRAS inhibitors from its peers, but Lee highlights the fact that these agents only target patients with the G12C mutant form.“Conversely, VS-6766 plus defactinib targets all KRAS mutations, and initial results suggest that the combination may be particularly effective in treating G12V and G12D mutants. Therefore, while these early results in NSCLC may appear well short of expectations, we note that the number of treated patients so far remain very small and that targeting underserved patient populations could allow Verastem carve out a niche in the KRAS NSCLC market,” Lee explained.As the company is also set to enroll additional patients with G12V and G12D mutant NSCLC and pancreatic cancer, with it potentially releasing the results by the end of 2020, the deal is sealed for Lee. The analyst reiterated both his Buy recommendation and $2.75 price target, implying 56% upside potential from current levels. (To watch Lee’s track record, click here)Looking at the consensus breakdown, VSTM has received 2 Buys and 1 Hold over the last three months. As a result, the biotech earns a Moderate Buy consensus rating. At $4.50, the average price target puts the upside potential at 156%, which flies past Lee’s forecast. (See Verastem stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Is (VSTM) Outperforming Other Medical Stocks This Year?

As of late, it has definitely been a great time to be an investor in Verastem, Inc. (VSTM).

Verastem, Inc. (Nasdaq:VSTM) (Verastem Oncology or the Company), a biopharmaceutical company focused on developing and commercializing medicines to improve the survival and quality of life of cancer patients, today announced the grant of options to purchase 127,500 shares of its common stock to nine new employees. The awards were granted as an inducement material to the employees' acceptance of employment with Verastem Oncology in accordance with Nasdaq Listing Rule 5635(c)(4). The options have an exercise price equal to $2.48 per share, the closing price of Verastem Oncology's common stock as reported by Nasdaq on April 1, 2020. The stock options that were granted to the nine new employees will vest at a rate of twenty-five percent (25%) on the one year anniversary of the employee's date of hire, with the remaining shares vesting quarterly over the next three (3) years in equal quarterly amounts, provided the employees continue to serve as employees of or other service providers to Verastem Oncology on each such vesting date.

Verastem, Inc. (Nasdaq:VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to developing and commercializing new medicines for patients battling cancer, today announced that it has appointed John H. Johnson to its Board of Directors. Mr. Johnson’s career covers multiple executive management roles at leading global corporations where he was responsible for overseeing oncology and immunology drug development initiatives and commercialization. Mr. Johnson will serve on the Compensation and Nominating and Governance Committees.

Verastem has been struggling lately, but the selling pressure may be coming to an end soon.

Verastem, Inc. (Nasdaq:VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to developing and commercializing new medicines for patients battling cancer, today reported financial results for the three months and full-year ended December 31, 2019, and provided an overview of recent corporate highlights.

Investors need to pay close attention to Verastem (VSTM) stock based on the movements in the options market lately.

Verastem, Inc. (Nasdaq:VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to developing and commercializing new medicines for patients battling cancer, today announced that the Company will present at the Jefferies Virtual Healthcare Conference on Thursday, June 4, 2020 at 2:30 p.m. EDT.

And they’re off to the races. All three of the major U.S. stock indexes popped on Monday after biotech company Moderna reported its experimental COVID-19 vaccine produced encouraging results in its Phase 1 trial, with it appearing to be safe and able to generate an immune response against the virus.While the news has inspired optimism among market watchers, one investing guru is saying slow your roll. Billionaire Steve Cohen told the employees of his investment firm, Point72 Asset Management, to use caution amid the market’s slight rebounds from low points.In a note to his staff, Cohen wrote, “Markets don’t come back in a straight line; after an earthquake there are tremors. We need to continue to be disciplined. We are seeing plenty of opportunities to generate returns, but I don’t want us taking undue risks.”Using what’s known as a multi-strategy approach which involves stock market investments as well as global investments in several asset classes all at once based on macroeconomic trends, Cohen is considered one of the best in the business. The legendary stock picker has the track record to back up his reputation.Taking a page from Cohen’s playbook, we scanned a recent 13F filing disclosing Point72’s recent buys and found three healthcare stocks that looked promising. After running each through TipRanks’ database, we learned that some Wall Street analysts are also avid fans of the Buy-rated tickers.Verastem (VSTM)Targeting the critical signaling pathways in cancer, Verastem is developing a diverse portfolio of small molecule drugs that could potentially stop the disease in its tracks. Based on this pipeline that includes phosphoinositide 3-kinase (PI3K) and focal adhesion kinase (FAK) inhibitors, some see significant gains in VSTM’s future. Cohen is among those that have high hopes for this healthcare name. Pulling the trigger on VSTM for the first time, Point72 purchased more than 6.1 million shares. The value of the firm’s new holding comes in at over $16 million.Meanwhile, five-star analyst Alethia Young, of Cantor Fitzgerald, cites recently released data on VS-6766 and Defactinib in ovarian and non-small-cell lung carcinoma (NSCLC) as the major component of her bullish thesis. For ovarian cancer, a 67% response rate was seen in six patients in the KRAS subgroup.The candidate also demonstrated activity in a subgroup of NSCLC KRAS G12V patients, with it producing a 10% response rate in the overall KRAS group of ten patients treated in the combo study. This suggests that G12V was the main driver of the effect. Young added, “In addition to the investigator run NSCLC cohort, VSTM studied G12V in another seven patients achieving a 57% ORR.” Additionally, while toxicities related to MEK/RAF and FAK were expected, the go forward dose appeared to be tolerable.Expounding on the implications of the data, Young said, “We find these data encouraging based on current market cap size since they have found likely two indications in subgroups where the monotherapy or combinations are active. We wonder if there will be questions around not seeing activity in the broader KRAS NSCLC subgroup, but overall we think this early signal in a hard to treat KRAS subgroup population is positive.”It should also be noted that challenging experiences with PI3K delta have created some headwinds, but Young still thinks the commercial potential for these therapies is underappreciated by investors. “Verastem’s Copiktra is approved for CLL and FL/SLL, which are two large markets. Our doctor checks suggest that PI3K is a viable class certainly in relapsed or refractory patients,” she stated.Bearing this in mind, Young left an Overweight rating and $6 price target on the stock. Should this target be met, a twelve-month gain of 233% could be in store. (To watch Young’s track record, click here)Looking at the consensus breakdown, 2 Buys and 1 Hold add up to a Moderate Buy analyst consensus. At $4.50, the average price target implies nearly 149% upside potential. (See Verastem stock analysis on TipRanks)Amicus Therapeutics (FOLD)Focused on delivering high-quality therapies for people living with rare metabolic diseases, Amicus Therapeutics takes its place at the forefront of the space. With a jam-packed development pipeline, it’s no wonder FOLD has scored fans. Cohen’s firm just gave the healthcare stock a nod of approval. Acquiring a new FOLD holding, Point72 picked up 2,242,900 shares valued at $20,724,000.Turning now to the analyst community, FOLD has received significant support. One of the analysts in its corner is Leerink's Joseph Schwartz, who points out that despite the COVID-19 pandemic, FOLD exceeded expectations for Q1 2020 revenue thanks to high pt. demand. The five-star analyst also noted, “Favorable reimbursement dynamics also continued to tailwinds for Galafold sales in Q1 2020. As strong adoption of Galafold continues, FOLD management reiterated that revenue continues to track towards full-year 2020 guidance of $250 to $260 million.”Additionally, Schwartz argues that in the last year, FOLD has increased its focus on cost management while still remaining committed to developing its product candidates, helping the company “turn a corner.” As part of this strategy, more cost saving initiatives have been put in place to mitigate any impacts from COVID-19, allowing its cash runway to extend through the second half of 2022.Most exciting for Schwartz, though, is that Phase 3 PROPEL for AT-GAA, its “crown jewel”, remains on track and manufacturing and supply is intact globally. Adding to the good news, AT-GAA was granted a rolling BLA submission, which is set to start in the second half of this year. This means that top-line data could be released in the first half of 2021.As the development of FOLD’s gene therapy portfolio is also progressing, with it planning to have clinical development, manufacturing and regulatory discussions for both the CLN6 and CLN3 Battens gene therapy programs, the deal is sealed for Schwartz.To this end, Schwartz maintained an Outperform call and $19 price target. This target conveys his confidence in FOLD’s ability to climb 51% higher in the next year. (To watch Schwartz’s track record, click here)What does the rest of the Street think about FOLD? It turns out that other analysts also have high hopes. With 5 Buys and a single Hold, the word on the Street is that this stock is a Strong Buy. In addition, the $20.58 average price target puts the upside potential at 65%. (See Amicus stock analysis on TipRanks)Insmed (INSM)Last but not least we have Insmed, which works on developing effective therapies for patients suffering from serious and rare diseases. While COVID-19 has weighed on the company, there are major catalysts on the horizon that could potentially fuel upside for shares.Point72 takes its place on the bulls’ side. Boosting its holding by a whopping 1,283%, the firm snapped up 3.3 million shares. As for the value of this new addition, it lands at $53.4 million.Like Cohen, H.C. Wainwright analyst Andrew Fein is optimistic. “In spite of investor uncertainty associated the with COVID-19 pandemic, we view the apparent progression of all pipeline programs in lieu of such headwinds as positive for the stock,” Fein commented.Looking specifically at ARIKAYCE, growth has slowed as a result of the public health crisis, but the five-star analyst argues that several factors suggest the momentum for sales growth will persist. These include the submission of an NDA in March in Japan, which boasts the largest diagnosed MAC lung disease population, and the pending EU marketing authorization. This would set INSM up for a Germany launch by year-end, followed up by a UK launch shortly after.The most noteworthy potential catalyst in terms of prescriptions and determining treatment duration, though, will be updated guidelines from both the American Thoracic Society (ATS) and the Infectious Disease Society of America (IDSA). It also doesn’t hurt that there’s a peer-reviewed paper offering solutions to address the adverse events that are sometimes witnessed with ARIKAYCE use and a patient reported outcome (PRO) tool for ARIKAYCE in non-tuberculosis (NTM) disease is being developed, with the trial kicking off in the beginning of the second half of 2020.Fein added, “Insmed announced that it has not yet observed any disruptions in the supply chain for ARIKAYCE production and should be able to meet global demand through 2022...Insmed believes that the current climate is causing a bolus of patients, which could lead to a major upswing in patients being treated with ARIKAYCE in 2H20.”If that wasn’t enough, Brensocatib, formerly INS1007, is on a clear path to Phase 3 trial initiation in bronchiectasis and is being studied in severe COVID-19 patients. “We feel the development of Brensocatib remains promising as we recall the announcement that AstraZeneca decided to exercise the first option to advance Brensocatib development in chronic obstructive pulmonary disease (COPD) or asthma patients,” Fein noted. Treprostinil Palmitil, previously INS1009, could also see Phase 1 initiation in pulmonary arterial hypertension in the second half of 2020.Based on all of the above, Fein reiterated his Buy rating and $52 price target. Given this target, shares could skyrocket 103% in the next twelve months. (To watch Fein’s track record, click here)With only Buy ratings assigned in the last three months, 6 to be exact, the message is clear: INSM is a Strong Buy. The $47.83 average price target is less aggressive than Fein’s, but it still leaves room for 87% upside potential. (See Insmed stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Verastem, Inc. (NASDAQ: VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to developing and commercializing new medicines for patients battling cancer, today announced that in light of public health and safety precautions related to COVID-19, including restrictions on in-person gatherings, the Company’s 2020 annual meeting of stockholders will be changed from an in-person meeting to a virtual-only meeting. As previously announced, the annual meeting will be held on May 19, 2020 at 9 a.m. Eastern Time, but stockholders will not be able to attend in person. The virtual meeting will provide stockholders with the ability to participate, vote their shares, and ask questions.

Verastem, Inc. (Nasdaq:VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to developing and commercializing new medicines for patients battling cancer, today reported financial results for the three months ending March 31, 2020, and provided an overview of recent corporate highlights.

Investors need to pay close attention to Verastem (VSTM) stock based on the movements in the options market lately.

Is (VSTM) Outperforming Other Medical Stocks This Year?

NEW YORK, April 09, 2020 -- Fields Kupka & Shukurov LLP is investigating potential breach of fiduciary duty claims involving the board of directors of Verastem, Inc..

Verastem, Inc. (Nasdaq:VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to developing and commercializing new medicines for patients battling cancer, today announced results from the ongoing investigator-initiated Phase 1 clinical study investigating VS-6766, its RAF/MEK inhibitor, in combination with defactinib, its FAK inhibitor, in patients with KRAS mutant advanced solid tumors. The data will be presented as a virtual poster today at the American Association for Cancer Research (AACR) 2020 Virtual Annual Meeting I.

Verastem, Inc. (Nasdaq:VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to developing and commercializing new medicines for patients battling cancer, today announced that an abstract highlighting preliminary results from the ongoing investigator-initiated clinical study investigating VS-6766, its RAF/MEK inhibitor, in combination with defactinib, its FAK inhibitor, in patients with KRAS mutant advanced solid tumors has been selected for a virtual poster presentation at the upcoming American Association for Cancer Research (AACR) 2020 Virtual Annual Meeting I, taking place April 27-28, 2020.

Shares of Verastem (NASDAQ: VSTM) -- a small-cap oncology-focused biotech -- were up by 10.9% as of 2:12 p.m. EDT on Monday. The company has not reported any news, though, so the reason behind that stock market rise is a bit of a mystery. Verastem's stock has been highly volatile all year, and not just because of the coronavirus-fueled market crash.

Verastem (VSTM) is seeing positive earnings estimate revisions, suggesting that it could be a solid choice for investors.

Verastem, Inc. (Nasdaq:VSTM) (also known as Verastem Oncology), a biopharmaceutical company committed to developing and commercializing new medicines for patients battling cancer, today announced that management will host an investor conference call to discuss the clinical data from the ongoing investigator-initiated study investigating VS-6766, its RAF/MEK inhibitor, in combination with defactinib, its FAK inhibitor, in patients with KRAS mutant advanced solid tumors. The conference call coincides with the presentation of this data at the upcoming American Association for Cancer Research (AACR) 2020 Virtual Annual Meeting I. The investor conference call is scheduled for Monday, April 27, 2020 at 8:00 a.m. ET.