SGMT Stock Forecast & Price Target

Sagimet Biosciences is advancing its clinical-stage portfolio with the development of denifanstat, a selective fatty acid synthase (FASN) inhibitor that has demonstrated significant anti-fibrotic effects, particularly in F3 patients with nonalcoholic steatohepatitis (NASH), suggesting potential improvements in liver outcomes. The company recently received clearance for its IND application regarding TVB-3567, another FASN inhibitor targeting acne, which validates its research and may generate tiered royalty payments from net sales in Greater China, establishing a second revenue stream. Positive results from the FASCINATE-2 study indicated that denifanstat effectively reduced LDL-C levels and increased beneficial polyunsaturated triglycerides, highlighting its potential to positively impact cardiovascular health, further enhancing the company's prospects.

Sagimet Biosciences reported a net loss of $16.2 million for 4Q24, translating to a loss of $0.50 per share, highlighting a challenging financial position as the company continues to invest heavily in clinical development. The company's reliance on the success of its drug candidate, denifanstat, for treating nonalcoholic steatohepatitis (NASH) poses significant risks, including the potential for disappointing Phase 3 trial results and difficulties in securing necessary regulatory approvals in the U.S. Additionally, concerns regarding the commercial viability of denifanstat, coupled with potential delays in development timelines and funding challenges, further contribute to a negative outlook on Sagimet Biosciences's stock.