Barclays Upgrades Sagimet Biosciences Inc (SGMT) to Overweight

Barclays analyst Eliana Merle upgraded Sagimet Biosciences Inc (NASDAQ: SGMT) from Equalweight to Overweight with a price target of $18.00 (from $8.00).

The analyst comments: “We recently caught up with SGMT. We increase our price target to $18 from $8 and upgrade to an Overweight rating from Equal Weight as we increase credit to acne and update our estimates after model review. We think at an EV of ~$400M (~$750M cap 9/8, ~$250M cash exiting 2Q) SGMT shares underprice the opportunity for defanistat as a safe oral in acne where we see a large market with limited novel mechanisms approved—we est ~$2B in unadjusted peak sales potential.

Defanistat registrational Ph3 recently initiated with enrollment expected to begin 4Q and data are expected by YE27; for TVB-3567 (next-gen FASN inhibitor) a Ph1 is ongoing with plans to initiate a Ph2 for acne by YE (the company also plans to develop a topical formulation of '3567 for acne). We note defanistat was successful in China Ph3 and is currently under review there (partnered with Ascletis) and we est. potential approval late '26/early '27; we think this reads through positively to the US Ph3 success (data expected by YE27) and opp'y in acne.

We note defanistat currently under review for acne in China after positive Ph3 data there which we view as derisking and a positive for the US Ph3/opp'y in acne. In China, the NDA for denifanstat for acne was accepted in December; mgmt has noted a ~10- to 16-month window to approval, which will trigger a milestone (SGMT also gets royalties). We thought data from defanistat in acne from the China Ph3 were encouraging; from our understanding the pathology of acne is similar across global populations. When we spoke to mgmt they cited they expect efficacy of defanistat in the US Ph3 to be similar to that seen in China and noted consistent placebo rates seen in historical trials globally.”

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 $10.71 yesterday.

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