Brandon Folkes, an analyst from H.C. Wainwright, has initiated a new Buy rating on Sagimet Biosciences, Inc. Class A (SGMT).
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Brandon Folkes has given his Buy rating due to a combination of factors that highlight Sagimet Biosciences’ innovative approach and promising clinical developments. The company is advancing a potentially best-in-class fatty acid synthase (FASN) inhibitor platform, which shows promise across multiple therapeutic areas, including metabolic dysfunction-associated steatohepatitis (MASH) and dermatology, with longer-term prospects in oncology.
The lead program, denifanstat, has demonstrated significant clinical activity in MASH, particularly in patients with F2–F3 fibrosis, showing meaningful histological and biomarker improvements. This positions the drug well for Phase 3 development. Additionally, the company’s efforts in dermatology with TVB-3567, supported by positive Phase 3 data from a similar compound, further validate the potential of their FASN platform. These developments, along with the differentiated mechanism of action of their drugs, suggest a strong potential for market uptake and possible blockbuster status if approved.
Folkes covers the Healthcare sector, focusing on stocks such as Omeros, Milestone Pharmaceuticals, and Trevi Therapeutics. According to TipRanks, Folkes has an average return of -6.3% and a 33.46% success rate on recommended stocks.
In another report released on July 24, Canaccord Genuity also initiated coverage with a Buy rating on the stock with a $28.00 price target.