Broadcom named strategic vendor for Walmart virtualization solutions
Sagimet Biosciences Inc. (SGMT), a clinical-stage biopharmaceutical company with a market capitalization of $171.6 million, revised executive employment agreements with key officers on June 6, 2025, adjusting severance terms to align with market practices. The company’s stock has shown remarkable momentum, gaining nearly 47% in the past week according to InvestingPro data. The changes involve David Happel, the CEO, Thierry Chauche, the CFO, and Eduardo Bruno Martins, M.D., D.Phil., a named executive officer. These amendments, referred to as the Amended Agreements, enhance severance benefits upon certain terminations close to a change in control event.
The Amended Agreements stipulate that in the event of a qualifying termination, the executives will receive severance pay based on their base salary and target bonuses, continued health insurance contributions, full vesting of stock options and awards, and extended exercisability of stock options. InvestingPro analysis shows the company maintains a strong financial position with minimal debt and a healthy current ratio of 20.34, indicating robust liquidity to meet its obligations.
Specifically, CEO David Happel’s agreement entitles him to 24 months of severance pay and benefits, CFO Thierry Chauche to 15 months, and Dr. Martins also to 15 months. These benefits include base salary, target bonus, prorated bonuses for the current year, COBRA payments, stock vesting acceleration, and extended stock option exercisability.
Furthermore, at the Annual Meeting on June 9, 2025, stockholders elected Elizabeth Grammer (ETR:GMMG) and Beth Seidenberg, M.D. to the Board as Class II directors and ratified the appointment of Deloitte & Touche LLP as the company’s independent auditor for the fiscal year 2025.
The detailed terms of the Amended Agreements will be included in Sagimet Biosciences’ upcoming Quarterly Report on Form 10-Q for the quarter ending June 30, 2025. This information is based on a press release statement.
In other recent news, Sagimet Biosciences Inc. announced positive results from a Phase 3 clinical trial for its acne treatment, denifanstat. Conducted by its partner Ascletis in China, the trial met all primary and secondary endpoints, demonstrating significant efficacy in treating moderate to severe acne vulgaris. Leerink Partners reiterated its Outperform rating on Sagimet, maintaining a price target of $26.00, following these favorable outcomes. The firm noted the drug’s potential as a differentiated treatment option in both acne and nonalcoholic steatohepatitis (NASH). Furthermore, Sagimet disclosed that Dr. Merdad Parsey will not seek re-election to the company’s board of directors, a decision unrelated to any disagreements with the company. This change was reported in a recent 8-K filing with the U.S. Securities and Exchange Commission. The company expressed appreciation for Dr. Parsey’s contributions during his tenure. Meanwhile, Sagimet has initiated a Phase 1 clinical trial for another FASN inhibitor, TVB-3567, targeting the acne market in the U.S. Additionally, Ascletis plans to seek approval for denifanstat from the China National Medical (TASE:BLWV) Products Administration.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.