Wedbush Starts Sagimet Biosciences Inc (SGMT) at Outperform

Wedbush analyst Yun Zhong initiates coverage on Sagimet Biosciences Inc (NASDAQ: SGMT) with a Outperform rating and a price target of $28.00.

The analyst comments "Sagimet is developing potent and selective oral fatty acid synthase (FASN) inhibitors for the treatment of metabolic dysfunction-associated steatohepatitis (MASH) and acne, two large indications that each affects tens of millions of patients in the U.S. Lead candidate denifanstat has demonstrated strong efficacy in both MASH patients with stage F2/F3 fibrosis and patients with moderate to severe acne in completed Ph2b and Ph3 studies, respectively. Therefore, although Sagimet's strategic plan is to start from Ph1 studies again with the combination of denifanstat and resmetirom, a thyroid hormone receptor-β agonist and the first MASH-specific therapy to receive FDA approval, for MASH patients with F4 fibrosis (cirrhosis), and to develop follow-on candidate TVB-3567 for acne in the U.S., we see both programs as significantly de-risked. Due to the large prevalences, even <10% market penetration will translate into >$1B revenue in each indication for Sagimet."

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 $8.73 yesterday.

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