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Replies to #289 on Verastem (VSTM)

MaineMan5

09/26/18 10:09 AM

#290 RE: realfast95 #289

Not sure why you are saying the company will never be profitable or why doctors won't prescribe the drug. The Stocktwits report you mention may indeed be compelling and I would love to read it and have others comment on it, but the company's actions tell another story (rapid ramp-up of sales force, immediate agreement with China), at least right now. There are no other alternatives for these relapsed patients. If there is a proven drug out there that can extend life when the alternative is to do nothing, why would it not be prescribed?

In terms of institutional ownership, you're right - they have resources and knowledge we don't. I'm not talking short term traders, but institutional investors who put their money into companies based on long term fundamental factors and projected future revenues / profits. As of 6/30/2018, BlackRock tripled their position to 3.5 million shares and Fidelity started a new 4 million share position. Consonance Capital, a fund specializing in pharma and managed by MDs, bought 7.16 million (approx. 10% of current outstanding shares) shares in a direct offering in June for $6 - at a price 10% over the market price at the time. Time will tell whether it will be prescribed or not, and I am willing to give this strong management team the benefit of the doubt for now.

buckysherm

09/26/18 6:34 PM

#291 RE: realfast95 #289

Yeah, but that company has $28 Mill in revenue. For VSTM, With only 2,000 patients / year that will mean $150+ Mill / year. Plus royalties from China, Europe, Japan ...