Promising Potential of Sagimet Biosciences: Buy Rating Affirmed by Positive Phase 3 Trial Results and Strategic Advancements

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

Thomas Smith has given his Buy rating due to a combination of factors that highlight the promising potential of Sagimet Biosciences, Inc. Class A. The recent positive topline results from a Phase 3 trial conducted by their partner Ascletis in China demonstrated the efficacy and safety of denifanstat, a FASN inhibitor, in treating moderate-to-severe acne. These results not only validate the scientific rationale for FASN inhibition but also enhance the safety profile of denifanstat, as the study reported only mild-to-moderate adverse events and no significant issues like hair thinning.
Furthermore, the data from this trial bolster confidence in Sagimet’s ongoing development plans, particularly in their lead indication of NASH. The successful trial outcomes also reduce the risk associated with advancing their next-generation FASN inhibitor, TVB-3567, into further clinical studies. Overall, Smith views Sagimet as an attractive investment opportunity within the broader NASH space, given the potential of denifanstat to be used as a monotherapy or in combination with other treatments, such as MDGL’s Rezdiffra.

In another report released yesterday, JonesTrading also reiterated a Buy rating on the stock with a $15.00 price target.