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On Wednesday, Leerink Partners reiterated its Outperform rating for Sagimet Biosciences Inc (NASDAQ: SGMT), maintaining a price target of $26.00. According to InvestingPro data, analysts’ targets for SGMT range from $5 to $67, with a strong consensus recommendation of 1.29 (Strong Buy). The decision follows positive topline results from a Phase 3 trial conducted by Sagimet’s partner in China, Ascletis, on the drug denifanstat in patients with moderate-to-severe acne.
The trial results showed significant efficacy for denifanstat, a fatty acid synthase (FASN) inhibitor, in the 12-week study. The drug was well-tolerated, with no reports of hair thinning and only mild-to-moderate drug-related adverse events among approximately 240 patients. This outcome enhances the safety and tolerability profile of denifanstat as Sagimet continues its development plans in nonalcoholic steatohepatitis (NASH) and acne. InvestingPro data shows the company maintains a strong financial position with a current ratio of 20.34 and more cash than debt on its balance sheet, providing runway for its development programs.
Sagimet’s partner, Ascletis, is conducting a Phase 3 trial evaluating oral 50mg QD denifanstat in patients with severe acne vulgaris. The positive topline results reinforce the drug’s safety and efficacy, reducing risks for Sagimet’s clinical efforts to advance the next-generation FASN inhibitor, TVB-3567, into a Phase 1 study in the second half of 2025 as a potential acne treatment.
Leerink Partners’ analysts view denifanstat as a potentially differentiated treatment, either as a monotherapy or in combination, particularly in the broader NASH space. The firm continues to see Sagimet as an attractive investment opportunity. InvestingPro analysis suggests the stock is currently undervalued, with additional metrics and insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.
In other recent news, Sagimet Biosciences announced positive Phase 3 clinical trial results for its acne treatment, denifanstat. The trial, conducted in China by licensing partner Ascletis Bioscience, met all primary and secondary endpoints, demonstrating significant efficacy in treating moderate to severe acne vulgaris. This development has bolstered investor confidence, with Leerink Partners maintaining an Outperform rating for Sagimet. The analyst firm sees these results as enhancing the safety dataset and clinical profile for FASN inhibition in acne and NASH treatments. Additionally, Sagimet Biosciences disclosed that Dr. Merdad Parsey will not seek re-election to the board of directors. This decision, detailed in an 8-K filing with the U.S. Securities and Exchange Commission, was not due to any disagreements with the company. Dr. Parsey will continue his duties until the Annual Meeting of Stockholders on June 9, 2025. The company has not provided further details on the impact of this board change or potential candidates for the vacant position.
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