Analyst Edward Nash from Canaccord Genuity maintained a Buy rating on Sagimet Biosciences, Inc. Class A and keeping the price target at $28.00.
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Edward Nash has given his Buy rating due to a combination of factors that highlight the potential of Sagimet Biosciences, Inc. Class A. The company is advancing its FASN inhibitor, denifanstat, in combination with the THR-β agonist resmetirom for the treatment of MASH, with a Phase I clinical trial planned for the second half of 2025. This combination therapy is promising because it theoretically offers a synergistic effect, blocking fat accumulation and enhancing fat burn, which is crucial for addressing MASH.
Furthermore, previous preclinical studies have shown that denifanstat, when used with resmetirom, effectively reduces liver fat and improves liver fibrosis in animal models. The safety profile of denifanstat, demonstrated in prior Phase II studies, adds to its appeal as a component of the combination therapy. The upcoming Phase I study aims to explore potential drug-drug interactions and optimize dosing for future Phase II development. Sagimet’s confidence in the trial’s success and the potential progression to Phase II in 2026 supports the Buy rating.
In another report released on August 11, Wedbush also initiated coverage with a Buy rating on the stock with a $28.00 price target.
SGMT’s price has also changed dramatically for the past six months – from $4.400 to $9.580, which is a 117.73% increase.