10 Hot Penny Stocks to Buy Now

2. Sagimet Biosciences Inc. (NASDAQ:SGMT

Price: $4.10

6-Months Performance: 35.31%

Number of Hedge Fund Holders: 18

Sagimet Biosciences Inc. (NASDAQ:SGMT) is a clinical-stage biopharmaceutical company that creates drugs called fatty acid synthase inhibitors. These drugs aim to treat diseases caused by problems in metabolic pathways, especially those resulting from the overproduction of the fatty acid, palmitate. Their main drug in development is denifanstat, a pill taken once a day that selectively inhibits FASN. It is being developed to treat metabolic dysfunction-associated steatohepatitis.

The company reported advancements during its fiscal third quarter results of 2024. FDA granted Breakthrough Therapy designation to denifanstat for treating non-cirrhotic MASH with moderate to advanced liver fibrosis. This designation was supported by positive data from the Phase 2b FASCINATE-2 trial. Moreover, Sagimet Biosciences Inc. (NASDAQ:SGMT) successfully completed the end of Phase 2 interactions with the FDA for denifanstat’s development in MASH26. This supports the advancement of denifanstat into Phase 3 development.

The company is yet to generate revenues however, as of September 30, 2024, it had approximately $170 million in cash, cash equivalents, and marketable securities, which is expected to support operations through 2025. It is one of the hot penny stocks to buy now as the stock has risen 35.31% over the past 6 months.