Sagimet Biosciences (SGMT) is making "good progress" in advancing denifanstat as a treatment for moderate to severe acne for the US market, Wedbush Securities said in a note Tuesday.
The investment firm said positive data from studies conducted in China suggest limited clinical risk for the experimental therapy, which is expected to enter phase 3 testing in H2 after regulatory clearance.
The company expects fast patient enrollment in the phase 3 study, with topline data possible by the end of 2027 or in early 2028, according to the note.
Wedbush said Sagimet ended Q2 with $257.6 million in cash after raising $175 million in April, with its cash runway expected to extend through 2028 and beyond the anticipated denifanstat phase 3 readout.
The firm said recent investor discussions reinforced the view that Sagimet remains "deeply undervalued" and continues to offer significant upside despite recent share gains.
Wedbush Securities has an outperform rating on Sagimet Biosciences, with a price target of $28.
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