Ascletis' Denifanstat Receives Approval for Acne Treatment

Written by Emily J. Thompson, Senior Investment Analyst

Source: Newsfilter

Updated: Jan 29 2026

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SGMT+2.02%

Should l Buy SGMT?

Source: Newsfilter

Clinical Trial Results: Denifanstat (ASC40) demonstrated favorable safety and tolerability in a Phase III open-label study involving 240 patients over 40 weeks, with all adverse events being mild or moderate, indicating strong potential for acne treatment applications.
Efficacy Validation: The previously conducted randomized double-blind trial confirmed that Denifanstat (ASC40) met all primary and secondary endpoints, showcasing its exceptional efficacy in treating moderate to severe acne, potentially positioning it as the first drug targeting the root cause of acne.
Mechanism Innovation: Denifanstat (ASC40) uniquely addresses the primary causes of acne by directly inhibiting sebum production and inflammatory responses, setting it apart from other treatments and likely attracting a broader patient base.
Market Prospects: The acceptance of Denifanstat (ASC40) for New Drug Application by the China National Medical Products Administration marks a significant breakthrough for Ascletis in the acne treatment sector, expected to generate substantial market share and revenue growth for the company.

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Analyst Views on SGMT

Wall Street analysts forecast SGMT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SGMT is 28.57 USD with a low forecast of 25.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

8 Analyst Rating

8 Buy

0 Hold

0 Sell

Strong Buy

Current: 5.440

Low

25.00

Averages

28.57

High

35.00

Current: 5.440

Low

25.00

Averages

28.57

High

35.00

Guggenheim

Seamus Fernandez

Buy

initiated

$27

2026-02-03

Reason

Guggenheim

Seamus Fernandez

Price Target

$27

AI Analysis

2026-02-03

initiated

Buy

Reason

Guggenheim analyst Seamus Fernandez initiated coverage of Sagimet Biosciences with a Buy rating and $27 price target. The firm believes the company has "two distinct, underappreciated potential blockbuster opportunities" for its FASN inhibitor portfolio in advanced F4 MASH and moderate-to-severe acne, the analyst tells investors. In MASH, lead asset denifanstat's Phase 2b FASCINATE-2 data demonstrated competitive efficacy as an oral therapy, while in acne, partner Ascletis has validated denifanstat's efficacy across a Phase 2 and 3 study in China, the analyst noted.

Clear Street

NULL -> Buy

maintain

$29 -> $37

2026-02-03

Reason

Clear Street

Price Target

$29 -> $37

2026-02-03

maintain

NULL -> Buy

Reason

Clear Street raised the firm's price target on Sagimet Biosciences to $37 from $29 and keeps a Buy rating on the shares. The firm says the 52-week open-label Phase 3 safety update for denifanstat "was largely a clearing event." Although efficacy was not the primary focus, Sagimet noted sustained and progressive improvement over time in patients who remained on denifanstat beyond the initial 12 weeks, the analyst tells investors in a research note. Clear Street sees this as a validating long-term dataset with direct read-through to Sagimet's next-generation FASN inhibitor, TVB-3567.

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About SGMT

Sagimet Biosciences Inc. is a clinical-stage biopharmaceutical company developing fatty acid synthase (FASN) inhibitors that are designed to target dysfunctional metabolic and fibrotic pathways in diseases resulting from the overproduction of the fatty acid, palmitate. The Company's lead drug candidate, denifanstat, is an oral, once-daily pill and selective FASN inhibitor in development for the treatment of metabolic dysfunction associated steatohepatitis (MASH). Denifanstat has been granted Breakthrough Therapy designation by the FDA for the treatment of non-cirrhotic MASH with moderate to advanced liver fibrosis. The Company is also exploring the use of its FASN inhibitors, which include denifanstat and its pipeline product candidate, TVB-3567, in acne and in select forms of cancer. Denifanstat is being tested in China by its license partner, Ascletis BioScience Co. Ltd., for moderate to severe acne vulgaris and recurrent glioblastoma multiforme in combination with bevacizumab.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Sagimet Stock Increases Following Acne Treatment Success

5 days agoBarron's

Stock Performance: Shares of Sagimet Biosciences increased by up to 12% on Tuesday morning.
Clinical Trial Results: The rise in stock price was driven by positive results from clinical trials for its acne treatment.
Analyst Recommendation: Guggenheim Securities issued a new Buy recommendation for Sagimet Biosciences.
Market Reaction: The combination of clinical success and analyst support contributed to the stock's upward movement.

Guggenheim Initiates Buy on Sagimet Biosciences with Blockbuster Potential

5 days agoseekingalpha

Buy Rating Initiation: Guggenheim has initiated a buy rating on Sagimet Biosciences (SGMT), suggesting that its assets targeting metabolic dysfunction-associated steatohepatitis (MASH) and acne could become a blockbuster drug, with shares rising approximately 10% in Tuesday morning trading.
Price Target Set: The firm has set a price target of $27, indicating about a 333% upside based on the February 2 close, reflecting optimistic market expectations for the company's future growth.
Clinical Progress: Sagimet's lead candidate, denifanstat, is currently in phase 2 for MASH and phase 3 for acne, while also being studied in phase 1 for solid tumors, showcasing its potential for multiple indications.
Market Opportunity: Analysts noted that phase 2b data for denifanstat in MASH could position it well for a fixed-dose combination with Madrigal Pharmaceuticals' Rezdiffra, targeting a market potential exceeding $5 billion for F4 cirrhotic MASH, indicating a broad market outlook for the drug.

Sagimet Biosciences Shares Drop 9% Following Partner's Trial Data Release

Jan 29 2026seekingalpha

Trial Data Release: Ascletis Pharma's initial data for ASC40 indicates a favorable safety and tolerability profile after 40 weeks in a study of 240 moderate-to-severe acne patients in China, potentially boosting market confidence.
Market Reaction: Sagimet Biosciences saw a premarket drop of approximately 9% on Thursday, reflecting investor concerns over the clinical data from its partner Ascletis, which may impact the company's future market performance.
Regulatory Review Progress: Ascletis is undergoing regulatory review for denifanstat in China, following a successful 100% efficacy rate in a double-blind Phase 3 trial involving 480 patients, laying a foundation for future market launch.
Strategic Partnership Impact: The collaboration between Sagimet and Ascletis is crucial for new drug development; although current data did not significantly boost stock prices, successful clinical outcomes could present long-term market opportunities for both companies.