Sagimet Biosciences Inc. saw its shares jump sharply on Monday after the company announced the pricing of a $175 million stock offering, with proceeds earmarked for a pivotal U.S. Phase 3 clinical trial of denifanstat for acne. The financing signals a strategic shift toward dermatology, putting its MASH liver-disease program on hold for now.
The company priced 29.17 million shares at $6 each, aiming to raise approximately $175 million. Shares surged about 38% to $8.12 in heavy afternoon trading, after hitting an intraday high of $9.34. Volume exceeded 48 million shares, reflecting strong investor interest in the company's refocused pipeline.
Sagimet plans to use the proceeds, combined with its existing cash reserves, to fund the U.S. Phase 3 acne trial for denifanstat and sustain its acne programs through 2028. The company reported approximately $104.5 million in cash, cash equivalents, and marketable securities as of March 31, though that figure is preliminary and unaudited.
Denifanstat targets fatty acid synthase (FASN), an enzyme involved in fat production. By blocking FASN, the drug aims to reduce sebum, the oily substance linked to acne, and also address skin inflammation. The company is targeting mid-2026 to submit an Investigational New Drug (IND) application to the FDA for denifanstat in acne, with plans to launch the registrational Phase 3 trial in the second half of 2026, pending regulatory clearance.
CEO David Happel noted that the decision to advance denifanstat for acne in the U.S. follows a successful Phase 3 trial conducted by its license partner, Ascletis Bioscience, in China. That study included 240 patients and showed that a once-daily 50 mg dose of denifanstat was generally well tolerated over 52 weeks.
In addition to denifanstat, Sagimet is funding development of TVB-3567, a second FASN inhibitor, through Phase 2 topline data, and is advancing a topical FASN candidate toward an IND filing. CFO Thierry Chauche emphasized the company's priority on its dermatology franchise, noting that it will seek non-dilutive capital to support the MASH program.
The MASH program has been paused, with Sagimet stating it will not move forward unless it secures non-dilutive funding. The company had been exploring a combination of denifanstat with Madrigal Pharmaceuticals' Rezdiffra (resmetirom), which received accelerated U.S. approval for MASH in 2024, and Novo Nordisk's Wegovy, the first GLP-1 approved for MASH. Phase 1 pharmacokinetics for the combination wrapped up in December 2025, and a Phase 2 trial could begin in the second half of 2026 if funding is secured.
Leerink Partners, TD Cowen, Guggenheim Securities, and Oppenheimer & Co. are acting as joint bookrunners for the offering, with Canaccord Genuity, H.C. Wainwright & Co., and Jones serving as co-lead managers. The offering is expected to close around April 28.
