Sagimet rises as Oppenheimer initiates coverage with 'outperform'

Madrigal Pharmaceuticals

06/12/2024 16:02

** Drug developer Sagimet Biosciences'  SGMT.O  shares rise
8.4% to $5.05
    ** Oppenheimer starts coverage with "outperform" rating and
PT at $30 — a 543.8% premium to Thursday's close of $4.66
    ** Brokerage sees "underappreciated opportunity" in co's
lead experimental drug, denifanstat, being developed to treat
metabolic dysfunction-associated steatohepatitis (MASH)
    ** MASH is a severe liver disease caused by fat buildup,
leading to inflammation and damage
    ** The MASH market is dominated by Madrigal Pharmaceuticals'
 MDGL.O  Rezdiffra
    ** "We see SGMT as ultimately benefiting from MDGL's
build-out of the MASH market as diagnosis rates and
reimbursement improve," brokerage says 
    ** Oppenheimer expects risk-adjusted peak total revenues of
~$1.9 bln for denifanstat in 2040      
    ** Including session's move, stock down 8.5% YTD

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com;))