Why Verastem Stock Jumped Briefly This Morning

Shares of Verastem (NASDAQ: VSTM) jumped by as much as 11% this morning after the company reported second-quarter earnings and announced a deal to sell development rights to a drug. The stock gave up those gains and closed breakeven for the day.

Revenue in the second quarter was $4.3 million, which resulted in an adjusted net loss of $20.5 million, or $0.12 per share. The developmental biotech company finished the quarter with $160.8 million in cash. Verastem also said it had entered into a definitive agreement to sell its global commercial and development rights to COPIKTRA (duvelisib) to Secura Bio in a deal worth up to $311 million. That transaction includes an up-front payment of $70 million, with additional possible payouts if Secura Bio can achieve various regulatory and sales milestones.

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Source Fool.com