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Goldman says this little-known biotech stock could more than double


Clinical-stage biopharmaceutical company Sagimet Biosciences could see its treatments reach a breakout stage, which could send its share price soaring, according to Goldman Sachs. Sagimet Biosciences focuses on developing fatty acid synthase (FASN) inhibitors , which can treat a range of diseases including various cancers, non-alcoholic steatohepatitis (NASH) and acne. The company’s interim data has shown its lead treatment candidate, denifanstant, can reduce liver fat levels for patients with NASH — which could help support the treatments’ advancement to a pivotal program. Analyst Andrea Tan initiated a buy rating on shares. Her price target of $33 implies 107% upside from Monday’s close. The stock has been publicly traded since July 14, and it’s trading slightly below its IPO level. SGMT 1M mountain SGMT “While we acknowledge the competitive landscape, denifanstat’s differentiated mechanism of action (direct targeting of hepatocytes, immune cells, and stellate cells to address underlying steatosis, inflammation, and fibrosis), alongside a predictive biomarker panel, could support a best-in-class profile and capture a blockbuster opportunity in F2/F3 NASH patients,” Tan wrote in a Tuesday note. F2 and F3 refer to the stages of NASH-associated fibrosis. Investors are focused on upcoming biopsy results of the second phase of the denifanstat study on liver fat levels, said Tan. Positive results from this phase would support advancement into a pivotal phase three study, she added. The “role of FASN in other indications could offer upside,” Tan noted. Denifanstat is currently in a phase-two clinical trial for moderate to severe acne. Increased expression of FASN has also been associated with reduced survival in several tumor cell types, which the company is currently in the early stages of evaluating. –CNBC’s Michael Bloom contributed to this report.

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