Sagimet Biosciences, Inc. Class A (SGMT) AI Stock Analysis

• Market Cap: $188.49M
• Dividend Yield: N/A
• Average Volume (3M): 581.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.71
• Revenue Growth: N/A
• EPS Growth: -38.23%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.40
• Shares Outstanding: 31,001,108
• 10 Day Avg. Volume: 860,269
• 30 Day Avg. Volume: 581,236
• PEG Ratio: 0.59
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.32
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -2.24
• 1Y Price Target: $27.00
• Price Target Upside: 344.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): -1.91
• Revenue Forecast (FY): $100.00K

• Rating: 49 Neutral
• Price Target: $5.50 ▼(-9.54% Downside)

The score is held back primarily by weak financial performance (no revenue, widening losses, and significant ongoing cash burn) and bearish technicals (below major moving averages with negative MACD). Offsetting this, recent positive clinical and pipeline-related corporate events provide meaningful upside potential, while valuation offers limited support due to a negative P/E and no dividend.

Positive Factors

Low leverage / strong balance sheet

Extremely low debt materially reduces solvency risk and gives management flexibility to fund clinical programs, partnerships, or licensing without near-term refinancing pressure. This durability supports multi-stage R&D investments over the next 2–6 months even amid ongoing cash burn.

Positive Phase 3 acne long-term safety

Robust long-term safety data from a 52-week Phase 3 program in acne validates denifanstat's tolerability profile and derisks regulatory pathways in China. Durable safety evidence strengthens the program's commercial and partnering prospects and supports broader development in dermatology and metabolic indications.

Strategic licensing for FDC resmetirom API

Securing a global exclusive resmetirom API license enables development of a fixed-dose combo targeting F4 MASH, aligning with preclinical synergy and Phase 2 plans. This structural partnership advances product differentiation and long-term competitive positioning in NASH therapeutics.

Negative Factors

No meaningful revenue; widening losses

As a pre-commercial biotech, absence of recurring revenue and rapidly increasing operating losses create persistent funding dependency. Over several months this constrains runway, forces capital raises or dilution risk, and limits ability to sustain expanding clinical programs without external financing.

Accelerating negative free cash flow

Large and worsening negative FCF reflects cash-intensive development activity and reduces financial flexibility. Sustained outflows can force prioritization of programs, delay trials, or require dilutive financings, materially affecting the firm's ability to execute its multi-indication pipeline strategy.

Negative returns on equity

Significantly negative ROE signals that capital is being consumed rather than generating shareholder returns. If losses continue, book value erosion could limit strategic options and investor confidence, increasing the need for external capital and potentially constraining long-term R&D investments.

Sagimet Biosciences, Inc. Class A Business Overview & Revenue Model

Company Description

Sagimet Biosciences Inc., a clinical-stage biopharmaceutical company, develops therapeutics called fatty acid synthase (FASN) inhibitors for the treatment of diseases that result from dysfunctional lipid metabolism pathways. Its lead drug candidate is Denifanstat, a FASN inhibitor for the treatment of nonalcoholic steatohepatitis and acne. The company is also developing TVB-3567, a FASN inhibitor for the treatment of various types of cancers. The company was formerly known as 3-V Biosciences, Inc. and changed its name to Sagimet Biosciences Inc. in August 2019. Sagimet Biosciences Inc. was incorporated in 2006 and is headquartered in San Mateo, California.

How the Company Makes Money

Sagimet Biosciences generates revenue through the development and potential commercialization of its proprietary drug candidates. The company's revenue model is primarily based on progressing its drug pipeline through phases of clinical trials, with the aim of achieving successful regulatory approvals. Additionally, Sagimet may engage in strategic partnerships and licensing agreements with larger pharmaceutical companies, which can provide milestone payments, upfront fees, and royalties on sales. These collaborations can significantly contribute to the company's earnings by providing financial support for research and development activities, as well as expanding market reach. However, as a clinical-stage company, it may currently rely on external funding sources such as venture capital, public offerings, and grants to support its operations.

Sagimet Biosciences, Inc. Class A Financial Statement Overview

Summary

Financials reflect a development-stage biotech: no meaningful revenue, widening net losses (TTM net loss about -$57.7M), and sustained negative operating/free cash flow (TTM FCF about -$44.8M). The balance sheet is a relative strength with very low debt versus equity, but ongoing burn and negative returns on equity materially weigh on the score.

Income Statement

The company remains pre-commercial, with revenue at $0 in 2024 and TTM (Trailing-Twelve-Months) after a modest $2.0M in 2023. Losses have widened meaningfully, with net loss increasing from about -$27.9M (2023) to -$45.6M (2024) and -$57.7M in TTM (Trailing-Twelve-Months), indicating rising operating spend ahead of scale. While this profile can be typical for biotech, the current trajectory reflects weak earnings quality and limited near-term visibility from the income statement alone.

Balance Sheet

Leverage is very low, with total debt of ~$0.12M in TTM (Trailing-Twelve-Months) against ~$119.3M of equity (debt-to-equity ~0.001), which is a clear strength and reduces financial risk. The balance sheet also shows a major improvement versus 2020–2022, when equity was negative, suggesting significant recapitalization since then. The key weakness is that ongoing losses are driving negative returns on equity (about -42% in TTM (Trailing-Twelve-Months)), which can pressure book value over time if cash burn persists.

Cash Flow

Cash generation is weak, with operating cash flow and free cash flow both negative across periods, including about -$44.8M in TTM (Trailing-Twelve-Months). Free cash flow deterioration is notable, with TTM (Trailing-Twelve-Months) free cash flow growth around -17%, implying accelerating cash burn. A positive is that free cash flow broadly tracks reported net loss (free cash flow to net income ~1.0), suggesting losses are not being masked by large non-cash addbacks, but the magnitude of outflows remains a clear risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	2.00M	0.00	0.00	0.00
Gross Profit	0.00	0.00	2.00M	0.00	0.00	0.00
EBITDA	-60.90M	-45.57M	-30.74M	-31.05M	-23.72M	-11.40M
Net Income	-57.67M	-45.57M	-27.88M	-30.50M	-24.44M	-11.37M
Balance Sheet
Total Assets	128.40M	160.26M	96.72M	33.03M	59.03M	68.96M
Cash, Cash Equivalents and Short-Term Investments	116.69M	151.25M	94.90M	32.34M	56.73M	68.70M
Total Debt	115.00K	78.00K	65.00K	211.00K	348.00K	210.00K
Total Liabilities	9.15M	4.45M	5.65M	219.98M	217.29M	204.87M
Stockholders Equity	119.25M	155.81M	91.06M	-186.95M	-158.26M	-135.91M
Cash Flow
Free Cash Flow	-44.84M	-42.44M	-23.77M	-24.49M	-21.71M	-10.42M
Operating Cash Flow	-44.84M	-42.44M	-23.77M	-24.49M	-21.71M	-10.42M
Investing Cash Flow	48.00K	-61.68M	12.58M	-32.01M	0.00	20.00K
Financing Cash Flow	275.00K	104.82M	86.17M	-73.00K	9.74M	68.89M

Sagimet Biosciences, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMT, the sentiment is Neutral. The current price of 6.08 is above the 20-day moving average (MA) of 6.08, below the 50-day MA of 6.18, and below the 200-day MA of 6.75, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 65.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGMT.

Sagimet Biosciences, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDTX	59 Neutral	$136.17M	6.59	19.23%	―	―	―
AVIR	58 Neutral	$320.32M	-2.31	-37.98%	―	―	14.33%
TRDA	52 Neutral	$413.53M	-4.32	-27.11%	―	-71.42%	-248.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CABA	50 Neutral	$241.63M	-0.99	-101.06%	―	―	-17.21%
SGMT	49 Neutral	$188.49M	-3.40	-39.78%	―	―	-38.23%
CDXS	42 Neutral	$119.23M	-1.76	-114.26%	―	-17.87%	14.42%

Sagimet Biosciences, Inc. Class A Corporate Events

Sagimet Biosciences Reports Positive Phase 3 Acne Data

On February 2, 2026, Sagimet Biosciences reported that its Chinese license partner Ascletis Pharma released positive topline data from a 52-week Phase 3 program of denifanstat (ASC40) in patients with moderate to severe acne, including an open-label extension trial evaluating long-term safety. In the multi-center ASC40-304 study, 240 patients who had completed a prior 12-week randomized Phase 3 trial received once-daily oral denifanstat 50 mg for up to 40 additional weeks; treatment was generally well tolerated, with only mild to moderate treatment-related adverse events, low rates of common side effects such as dry eye and dry skin, no denifanstat-related serious adverse events, and no permanent discontinuations attributed to the drug. Patients experienced further improvements across all key efficacy measures—including Investigator’s Global Assessment response rates and reductions in total and inflammatory lesion counts—beyond those seen at 12 weeks, strengthening the clinical case for FASN inhibition as a novel mechanism in acne and supporting Sagimet’s broader strategy to advance denifanstat and next-generation FASN inhibitors across dermatologic and metabolic indications.

The most recent analyst rating on (SGMT) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Sagimet Biosciences, Inc. Class A stock, see the SGMT Stock Forecast page.

Sagimet Highlights Positive MASH Combo Data and Pipeline Progress

On 18 December 2025, Sagimet Biosciences updated its investor presentation and issued a press release reporting positive results from a Phase 1 pharmacokinetic trial evaluating a combination of its FASN inhibitor denifanstat with the thyroid hormone receptor beta agonist resmetirom, a pairing supported by preclinical evidence of synergistic effects in MASH. The refreshed materials highlight denifanstat’s progress in MASH, where a Phase 2b trial previously met histology primary and multiple secondary endpoints and the program has FDA Breakthrough Therapy designation with Phase 3 readiness, as well as the completion of a Phase 1 hepatic impairment study and the new Phase 1 combination PK data that pave the way for a planned Phase 2 trial in MASH cirrhosis (F4) in the second half of 2026. The company also underscores growing momentum in dermatology, with licensee Ascletis having reported that a Phase 3 acne trial of denifanstat in China met all primary and secondary endpoints and that a new drug application for moderate to severe acne was accepted by China’s NMPA in December 2025, while Sagimet advances TVB-3567 in a first-in-human Phase 1 acne study, collectively strengthening its clinical pipeline and reinforcing its strategic positioning in metabolic and inflammatory diseases.

The most recent analyst rating on (SGMT) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Sagimet Biosciences, Inc. Class A stock, see the SGMT Stock Forecast page.

Sagimet Biosciences enters global license agreement with TAPI

Sagimet Biosciences Inc. announced its entrance into a license agreement with TAPI Technology & API Services, a subsidiary of Teva Pharmaceutical Industries Ltd., on December 17, 2025. This collaboration grants Sagimet a global, exclusive license to TAPI’s innovative resmetirom active pharmaceutical ingredient (API), supporting the development of a fixed-dose combination (FDC) product featuring denifanstat and resmetirom. The program aims to address critical unmet needs for cirrhosis patients affected by F4-stage MASH. This move marks a significant step forward for Sagimet’s research and development efforts as it aligns with preclinical data showing synergy in treating liver diseases, positioning Sagimet for further advancement in the field.

The most recent analyst rating on (SGMT) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Sagimet Biosciences, Inc. Class A stock, see the SGMT Stock Forecast page.

Sagimet Biosciences Reports Q3 Results and Updates

On November 13, 2025, Sagimet Biosciences reported its third-quarter financial results and provided corporate updates, including ongoing clinical trials. The company is conducting a Phase 1 trial to assess the pharmacokinetics of a combination of denifanstat and resmetirom, with results expected in the first half of 2026. Additionally, Sagimet’s partner, Ascletis, plans to submit a New Drug Application in China for denifanstat to treat acne. The company also announced leadership promotions and highlighted recent presentations at medical conferences, showcasing positive outcomes in clinical trials for both MASH and acne.

The most recent analyst rating on (SGMT) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Sagimet Biosciences, Inc. Class A stock, see the SGMT Stock Forecast page.