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Investing.com - Wedbush initiated coverage on Sagimet Biosciences Inc (NASDAQ:SGMT) with an Outperform rating and a price target of $28.00 on Monday. According to InvestingPro data, this target aligns with the broader analyst consensus, which remains highly bullish with targets ranging from $5 to $31.
The research firm cited the company’s development of oral fatty acid synthase (FASN) inhibitors for treating metabolic dysfunction-associated steatohepatitis (MASH) and acne, conditions affecting tens of millions of U.S. patients. The company maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and a healthy current ratio above 20.
Wedbush highlighted that Sagimet’s lead candidate denifanstat has shown strong efficacy in both MASH patients with stage F2/F3 fibrosis and patients with moderate to severe acne in completed Phase 2b and Phase 3 studies, respectively.
The firm noted Sagimet’s strategic plan to restart with Phase 1 studies combining denifanstat and resmetirom (a thyroid hormone receptor-β agonist and the first FDA-approved MASH-specific therapy) for MASH patients with F4 fibrosis, while developing follow-on candidate TVB-3567 for acne in the U.S.
Wedbush projects significant revenue potential for Sagimet, stating that even less than 10% market penetration could translate to over $1 billion in revenue for each indication due to the large prevalence of both conditions. The market appears to recognize this potential, with the stock delivering an impressive 217% return over the past year. For deeper insights into Sagimet’s growth prospects and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Sagimet Biosciences Inc. reported positive Phase 3 trial results for its acne treatment, denifanstat, conducted by its partner Ascletis in China. The trial demonstrated statistically significant improvement on all primary and secondary endpoints, with no serious adverse events or new safety signals observed among the 480 patients involved. This outcome has bolstered investor confidence, as the drug showed significant efficacy in treating moderate to severe acne vulgaris. Additionally, the trial’s design was noted to align well with FDA requirements, enhancing its credibility. Analysts at JMP Securities reiterated a Market Outperform rating with a $31 price target, while Leerink Partners maintained an Outperform rating with a $26 price target. These ratings reflect the positive reception of the trial results and the drug’s potential in the market. Furthermore, Sagimet updated executive employment agreements to enhance severance benefits, aligning with market practices. These developments mark significant progress for Sagimet as it continues its drug development plans.
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