Jonathan Wolleben, an analyst from JMP Securities, reiterated the Buy rating on Sagimet Biosciences, Inc. Class A (SGMT – Research Report). The associated price target remains the same with $31.00.
Jonathan Wolleben has given his Buy rating due to a combination of factors surrounding Sagimet Biosciences’ strategic initiatives and promising developments. The clearance by the FDA for Sagimet’s investigational new drug application for TVB-3567, a next-generation fatty acid synthase (FASN) inhibitor, marks a significant step forward as it enters Phase 1 trials this year. This trial will include subjects with acne, a condition affecting a substantial portion of the U.S. population, thereby presenting a large market opportunity.
Wolleben notes the strategic move to focus on acne, leveraging the mechanistic rationale and supportive data from its partner Ascletis, which has demonstrated efficacy in Phase 2 trials. The anticipated Phase 3 data from Ascletis for denifanstat in acne will provide further insights and potentially de-risk TVB-3567’s development. The expansion into acne is seen as a valuable upside, with the potential to differentiate pricing strategies between metabolic-associated steatohepatitis (MASH) and acne treatments, enhancing Sagimet’s market position.
According to TipRanks, Wolleben is a 4-star analyst with an average return of 3.5% and a 37.29% success rate. Wolleben covers the Healthcare sector, focusing on stocks such as Structure Therapeutics, Inc. Sponsored ADR, Protagonist Therapeutics, and BioCryst.