Leerink Partners Reiterates Outperform Rating on Sagimet Biosciences Inc (SGMT)

Leerink Partners analyst Thomas Smith reiterated an Outperform rating and $26.00 price target on Sagimet Biosciences Inc (NASDAQ: SGMT)

The analyst comments "Bottom Line: SGMT’s (OP) partner in China, Ascletis (1672- HK, not rated), announced positive topline results from their Phase 3 trial of denifanstat (deni, FASN inhibitor) in patients with moderate-to-severe acne. Deni produced compelling efficacy in this 12-week pivotal study, further validating the strong scientific rationale for FASN inhibition in acne. Importantly, deni was also well-tolerated in this study, with no mention of hair thinning in the topline release and only mild-to-moderate drug-related AEs observed across ~240pts – providing positive readthrough to deni’s safety/tolerability profile as SGMT executes their ongoing development plans in NASH and acne. Recall SGMT’s partner Ascletis is conducting a Phase 3 trial (NCT06192264) evaluating oral 50mg QD denifanstat in patients with severe acne vulgaris. With these topline results, we believe the data (1) reinforce an attractive balance of safety and efficacy for denifanstat in SGMT’s lead NASH indication, and (2) meaningfully de-risk SGMT's clinical efforts to advance next-gen FASN inhibitor TVB-3567 into a Phase 1 study in 2H25 as an asset being developed strategically as a treatment for acne. Overall, we believe these topline Phase 3 acne results from Ascletis in China meaningfully add to deni's safety dataset, and suggest an attractive clinical profile for FASN inhibition in acne and NASH. We continue to view deni as potentially differentiated as a monotherapy or combination agent, and consider SGMT to be an attractive play on the broader NASH space. See our note on the company's recent virtual KOL event highlighting the potential for combination therapy of denifanstat and MDGL's (OP) Rezdiffra in NASH HERE. Reiterate OP."

For an analyst ratings summary and ratings history on Sagimet Biosciences Inc click here. For more ratings news on Sagimet Biosciences Inc click here.

Shares of Sagimet Biosciences Inc closed at $3.63 yesterday.

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