Sagimet Biosciences experienced a significant rise in its stock price, climbing 22% by Friday afternoon, after the company”s experimental drug, Denifanstat, demonstrated positive outcomes in a late-stage clinical trial targeting moderate to severe acne vulgaris.
The clinical trial was conducted by Ascletis Bioscience, Sagimet”s licensing partner in China, involving 480 participants diagnosed with moderate to severe acne. The study”s primary aim was to assess the safety and efficacy of Denifanstat as a treatment for this common skin condition.
Denifanstat, administered orally at a daily dosage of 50 mg, resulted in statistically significant and clinically relevant improvements across all primary and secondary efficacy endpoints. Notably, the primary endpoints included metrics such as the percentage change in total lesion count and the percentage change in inflammatory lesion count.
At the 12-week mark, the treatment success rates for Denifanstat were reported to be more than double that of the placebo group, showing considerable reductions in both inflammatory and non-inflammatory lesions. Additionally, the company indicated that the drug was generally well-tolerated among participants.
Looking ahead, Ascletis announced plans to submit a new drug application to the China National Medical Products Administration for Denifanstat in the near future.
Meanwhile, Sagimet is also exploring the use of Denifanstat for treating metabolic dysfunction associated steatohepatitis, a severe liver condition characterized by fat accumulation, inflammation, and damage to liver cells.
On the investment front, there was a notable shift in sentiment regarding the stock among retail investors on Stocktwits, with opinions moving from bearish to bullish. The volume of discussions related to the stock surged from normal to extremely high levels following the positive trial results. One user highlighted the potential of the Chinese market as a contributing factor to the stock”s performance, noting that SGMT has nearly doubled in value this year.
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