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Sun. Jul 14th, 2024

Sagimet Biosciences maintains Buy stock rating after sample data from Investing.com

By Vaseline Jun10,2024

On Monday, TD Cowen reaffirmed its Buy rating on shares of Sagimet Biosciences Inc (NASDAQ: SGMT), following the presentation of additional Phase 2b trial data for the company’s drug candidate denifanstat, targeting non-alcoholic steatohepatitis (NASH). The detailed results were shared last Thursday at the European Association for the Study of the Liver (EASL) conference in Milan.

The data from the FASCINATE-2 trial showed statistically significant improvements in fibrosis and NASH resolution. Furthermore, the analysis of fibrosis improvement in two phases and multiple F3 subpopulations showed a larger effect size than the intention-to-treat (ITT (NYSE:)) population. These findings have strengthened confidence in the drug’s efficacy profile.

Following the presentation, TD Cowen hosted a management event at the conference, where Sagimet Biosciences provided insights into the upcoming Phase 3 NASH trial for denifanstat. According to the company, this pivotal trial will start later this year.

The positive study results and the prospect of the initiation of the Phase 3 trial have been key factors in TD Cowen’s decision to maintain a positive view of Sagimet Biosciences. The company’s continued support reflects optimism about the drug’s potential in the NASH treatment landscape.

In other recent news, Sagimet Biosciences has made significant progress in the biopharmaceutical sector. The company has been given a Buy rating by TD Cowen, following positive topline results from the Phase 2b FASCINATE-2 trial. These results, related to the efficacy of denifanstat in the treatment of non-alcoholic steatohepatitis (NASH), are considered promising by the company.

Additionally, HC Wainwright initiated coverage on Sagimet Biosciences with a Buy rating, highlighting denifanstat’s potential as a lead therapy for metabolic dysfunction-associated steatohepatitis (MASH). The company set a price target of $32.00.

These are recent developments that have put Sagimet Biosciences in the spotlight. The company’s lead drug candidate, denifanstat, has shown significant reduction in NASH resolution and improvement in fibrosis. As a result, Sagimet Biosciences is expected to initiate Phase 3 trials by the end of 2024. This is a crucial advancement in the company’s journey, as the continued development and study of denifanstat could represent a substantial advance in the treatment of NASH.

InvestingPro Insights

In light of TD Cowen’s reaffirmed Buy rating on Sagimet Biosciences Inc (NASDAQ: SGMT), it’s worth noting that the company has a stronger cash position than debt on its balance sheet, which could provide financial flexibility as they enter Phase 3 trials. Furthermore, analysts expect revenue growth for Sagimet Biosciences in the current year, reflecting optimism about the company’s future performance.

From a valuation perspective, Sagimet Biosciences currently has a market capitalization of USD 150 million, and despite recent volatility, with the share price down over 9% in the past week, the stock has seen a significant increase of almost 30% over the past six months. . The company’s gross profit margin stands at an impressive 100%, according to data covering the trailing twelve months as of Q1 2024. However, it is important to note that the operating profit margin during the same period was negative, indicating challenges in the field of profitability.

For investors looking to dive deeper into Sagimet Biosciences, there are more InvestPro Tips available, providing further analysis and context for the company’s financial health and stock performance. Use the coupon code PRONEWS24 to get an extra 10% off an annual or bi-annual Pro and Pro+ subscription, and discover more insights to help you with your investment decisions.

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