Buy Rating for Sagimet Biosciences Driven by Promising Clinical Data and Market Potential of Denifanstat

Leerink Partners analyst Thomas Smith has reiterated their bullish stance on SGMT stock, giving a Buy rating on June 17.

Thomas Smith’s rating is based on the promising clinical data and market potential of Sagimet Biosciences’ lead asset, denifanstat, in treating moderate-to-severe acne. The recent Phase 3 results from their partner Ascletis in China demonstrated that denifanstat effectively reduces lesion counts, showing competitive efficacy compared to existing acne treatments.
Furthermore, the company is advancing its next-generation FASN inhibitor, TVB-3567, with a Phase 1 trial underway and plans for a Phase 2 trial, indicating a strong pipeline. The potential for denifanstat as a differentiated therapy in both acne and nonalcoholic steatohepatitis (NASH) further supports the Buy rating, as it could serve as a monotherapy or in combination with other treatments, expanding its market opportunities.

In another report released on June 17, Piper Sandler also maintained a Buy rating on the stock with a $67.00 price target.