Sagimet Biosciences, Inc.: A Promising Investment in the NASH Market with Strategic Growth Initiatives

In a report released on May 9, Thomas Smith from Leerink Partners maintained a Buy rating on Sagimet Biosciences, Inc. Class A (SGMT – Research Report), with a price target of $26.00.

Thomas Smith has given his Buy rating due to a combination of factors that highlight Sagimet Biosciences, Inc.’s potential in the biopharmaceutical sector. The company is operationally prepared to commence its Phase 3 NASH program, although it is currently exploring various financing options to support the program’s primary readouts. This strategic approach to securing funding, including potential partnerships and royalty deals, indicates a proactive management team focused on long-term growth.
Additionally, Sagimet’s lead asset, denifanstat, has shown promising preclinical data, particularly in combination with resmetirom, which could lead to the development of a fixed-dose combination product for NASH. The company’s ongoing collaboration with Ascletis in China and the expected data from a Phase 3 acne trial further bolster confidence in denifanstat’s safety profile. These developments, combined with the company’s attractive valuation relative to its peers, position Sagimet as a compelling investment opportunity in the NASH market.

According to TipRanks, Smith is a top 100 analyst with an average return of 32.3% and a 44.54% success rate. Smith covers the Healthcare sector, focusing on stocks such as Viking Therapeutics, Cartesian Therapeutics, and Immunovant.