Verastem Inc (NASDAQ: VSTM) was one of the top gainers in yesterday’s trading session. The followed an announcement that, the company had entered into a global licensing agreement with Chugai Pharmaceuticals CO. Ltd. Under the agreement, Verastem Inc. will get global development and sale of Chugai’s CH5126766 (CK127) that is currently under development for treating KRAS mutant solid tumors. 

The developmental treatment, CH5126766 is in phase 1 clinical study and expansion is ongoing for testing its efficacy in treating KRAS mutant advanced solid tumors. The tumors include for the treatment of solid tumors, and also in the treatment LGSOC (Low grade serious ovarian cancer), colorectal cancer and non-small cell lung cancer.  The study is in combination with Verastem’s Kinase inhibit named defactinib. The clinical study of the combination also has the support of a single-agent phase 2 studies of Verastem’s defactinib in KRAS mutant in NSCL, LGSOC and CH5126766 in KRAS NSCLC.

Commenting on the deal, Verastem Oncology CEO, Dan Paterson stated that, on the basis of a single-agent defactinib results from KRAS mutant NSCLC, the company did an internal pre-clinical study to make out the drug classes that had synergies with defactinib. He added that, the most synergies were seen when it was combined with CH5126766.  He further stated that, the early clinical results informed the company’s decision to sign the partnership for CH5126766 with Chugai, a partnership that will give impetus to the development program for patients suffering from KRAS mutant cancers.  He added that they planned to engage the authorities about it and chart the process of registration this year.

Looking at its price action, the company in a breakout in yesterday’s trading session. The company opened trading at $1.40 and traded between a low of $1.39 and a high of $1.89 before closing the day at $1.72. Volumes in the day stood at 22.16 million.

About Verastem Inc.

Verastem Inc is a biopharma company that focuses on developing an selling cancer medicines. It is based in Needham, Massachusetts.