3. Sagimet Biosciences Inc. (NASDAQ:SGMT)
Number of Hedge Fund Investors: 17
Sagimet Biosciences Inc (NASDAQ: SGMT) is a clinical-stage biopharmaceutical firm that is developing a treatment for metabolic dysfunction-related disorders by inhibiting fatty acid synthase. This strategy focuses on fatty acid overproduction, which has been linked to conditions such as acne, metabolic dysfunction-associated steatohepatitis (MASH), and some malignancies. Denifanstat is proceeding to phase 3 after successful trial findings that promise to address major and rising health problems connected to MASH, which is expected to become the primary cause of liver transplants by 2030.
SGMT is one of the Best New Penny Stocks To Buy Now. The company made its IPO on July 14, 2023. Insider Monkey disclosed 17 funds that owned SGMT hedge funds in Q1 2024.
TD Cowen maintained its Buy rating on Sagimet Biosciences Inc (NASDAQ: SGMT) after additional positive results from the Phase 2b study of denifanstat, which treats non-alcoholic steatohepatitis (NASH), were released. At the European Association for the Study of the Liver (EASL) conference in Milan, the findings were presented. Confidence in the drug’s efficacy was boosted by the FASCINATE-2 trial data, which showed statistically significant improvements in fibrosis and NASH resolution, especially in a two-stage fibrosis improvement and multiple F3 subpopulations, which demonstrated a larger effect size than the intention-to-treat (ITT) population.
At the EASL conference, TD Cowen organized a management event where Sagimet Biosciences presented the Phase 3 NASH trial for denifanstat, which is scheduled to start later this year. TD Cowen’s optimistic assessment of the company has been influenced by these encouraging results as well as the planned Phase 3 investigation.
Furthermore, H.C. Wainwright began covering Sagimet with a Buy rating, highlighting the potential of denifanstat as a cornerstone treatment for steatohepatitis associated with metabolic dysfunction (MASH), and establishing a $32.00 price objective.
As of March 31, 2024, the firm had $193.7 million in cash, cash equivalents, and marketable securities. Denifanstat has demonstrated stronger fibrotic effects in advanced F3 populations, which have a higher unmet demand in medicine. New findings demonstrated that denifanstat is statistically significant in both NASH resolution and fibrosis improvement, lowering the risk of Phase 3 trials, and establishing Sagimet Biosciences as a significant participant in the biopharmaceutical industry. Phase 3 is coming up in the second half of 2024, so the business is definitely getting close to the finish line.
SGMT is regarded as an appealing investment in the broader NASH space, trading at a discount ($3.00) to competitors, per analysts. Sagimet Biosciences Inc. (NASDAQ:SGMT) has an average price target of $35.8 and a “buy” recommendation from analysts, suggesting an upside potential of 1,093.33% for investors.
