Why Verastem Stock Spiked Today

Verastem (NASDAQ: VSTM), a small-cap cancer specialist, saw its shares briefly spike by as much as 29% Monday morning. The drugmaker's stock started today's trading session off on a strong note in response to a clinical collaboration agreement with biotech heavyweight Amgen (NASDAQ: AMGN).

Before the opening bell, Verastem announced that the two companies agreed to evaluate VS-6766 in combination with Lumakras (sotorasib) in KRAS G12C-mutant non-small cell lung cancer (NSCLC). VS-6766 is Verastem's experimental RAF/MEK inhibitor, and Lumakras is Amgen's Food and Drug Administration approved treatment for adult patients with KRASG12C-mutated NSCLC. Preclinical data reportedly showed that this unique combo acts synergistically in this setting.

Since the opening bell, Verastem's shares have steadily faded over the course of today's trading session, with the biotech's stock essentially trading flat as of 2:53 p.m. EDT Monday afternoon. 

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Source Fool.com