Sagimet Stock Soars To 10-Month High, Retail’s Fired Up Over Presentation On Lead MASH Drug Candidate

Shares of Sagimet Biosciences soared nearly 40% on Monday, reaching levels not seen since March 2024, as retail sentiment surged following news of an upcoming presentation linked to its lead drug candidate. 

The clinical-stage biopharma company, which is developing novel therapeutics targeting metabolic and fibrotic diseases, announced that it will present at the 9th Annual MASH-TAG Conference in Park City, Utah, from Jan. 9 to 11.

The presentation will spotlight the company’s lead drug candidate, denifanstat, an oral, once-daily fatty acid synthase (FASN) inhibitor, which has shown promising results in the Phase 2b FASCINATE-2 study for the treatment of metabolic dysfunction-associated steatohepatitis (MASH). 

SGMT sentiment and message volume Jan 6 as of 11:35 am ET | source: Stocktwits

Retail sentiment on Stocktwits turned ‘extremely bullish,’ with Sagimet’s stock trending among the top 20 tickers as of mid-morning. 

Many investors eagerly await further announcements at the conference, with some buying based on rumors of a significant update.

The study demonstrated a positive anti-fibrotic effect, providing strong support for the drug’s potential in treating liver diseases caused by excessive fat buildup and inflammation.

Sagimet’s FASN inhibitors aim to address the dysfunctional metabolic pathways responsible for the overproduction of palmitate, a fatty acid linked to diseases like MASH. 

Denifanstat’s progress has been noteworthy, with Breakthrough Therapy designation granted by the FDA for treating non-cirrhotic MASH with moderate to advanced liver fibrosis (F2-F3).

Oppenheimer’s recent coverage of Sagimet with an ‘outperform’ rating and a $30 price target, which implies more than a 340% upside from current levels, has also contributed to the stock’s upward movement. 

The brokerage firm highlighted denifanstat’s potential in the MASH market, which is currently dominated by Madrigal Pharmaceuticals’ Resmetirom. 

Oppenheimer estimates denifanstat could achieve peak revenues of around $1.9 billion by 2040, solidifying its long-term growth prospects.

Sagimet stock has gained nearly 50% so far this year.

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