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Sagimet Biosciences Inc. (NASDAQ:SGMT), a biotech company whose stock has surged over 287% in the past year, announced Thursday it has entered into a sales agreement with Leerink Partners LLC, allowing the company to offer and sell up to $75 million of its Series A common stock through at-the-market (ATM) offerings. According to InvestingPro data, the company, currently valued at $308.43 million, maintains a strong financial position with more cash than debt on its balance sheet. This information is based on a statement in a press release and an accompanying SEC filing.
Under the agreement, Leerink Partners will act as sales agent, using commercially reasonable efforts to sell the shares according to instructions from Sagimet Biosciences . The agent will receive a commission of up to 3.0% of the gross proceeds from each sale. The company is not obligated to sell any specific amount of shares and may suspend or terminate the agreement at any time. InvestingPro analysis shows the company maintains a healthy current ratio of 17.55, indicating strong ability to meet short-term obligations.
Sales under the agreement may be made in transactions classified as "at the market offerings" as defined by Rule 415(a)(4) under the Securities Act of 1933. The shares will be offered under Sagimet’s existing shelf registration statement on Form S-3, filed with the Securities and Exchange Commission on August 15, 2024, and declared effective on August 26, 2024.
In a related move, Sagimet Biosciences also terminated its previous Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co., effective Thursday. No shares were sold under the Cantor agreement between August 15, 2024, and August 14, 2025.
Legal counsel for Sagimet, Goodwin Procter LLP, has issued a legal opinion related to the new sales agreement.
Sagimet Biosciences is incorporated in Delaware and is headquartered in San Mateo, California. Its Series A common stock is listed on the Nasdaq Global Market under the symbol SGMT. Currently trading at $8.67, analyst price targets range from $5 to $33, reflecting diverse views on the company’s potential. For deeper insights into Sagimet’s financials and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive research available on InvestingPro.
In other recent news, Sagimet Biosciences Inc. has been in the spotlight following significant developments. The company reported positive Phase 3 clinical trial results for its acne treatment, denifanstat, conducted by its partner Ascletis in China. The trial successfully met all primary and secondary endpoints, showing significant efficacy and no serious adverse events, which enhances the drug’s safety and tolerability profile. As a result, JMP Securities reiterated its Market Outperform rating with a $31 price target, while Leerink Partners maintained its Outperform rating with a $26 price target.
Additionally, Wedbush initiated coverage on Sagimet Biosciences with an Outperform rating and a price target of $28. The firm’s focus on developing oral fatty acid synthase inhibitors for conditions like metabolic dysfunction-associated steatohepatitis and acne was highlighted. In a separate development, Sagimet updated executive compensation agreements for key officers, aligning severance terms with market practices. These agreements provide enhanced severance benefits in the event of qualifying terminations related to a change in control event.
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