Oct. 21 at 8:31 PM
Clear Street🏁
$SGMT Buy/
$29
$MDGL Boston Pharma -
$GSK $IVA VKTX
$ALGS
Clear Street said:
We initiate coverage of SGMT with a Buy, reflecting the highly attractive profile of once-daily oral denifanstat—an asset leveraging robust multi-modal biology akin to FGF21 analogs, which have recently driven prominent M&A activity within the MASH space.
Denifanstat's exceptional P2b F2-F3 data, outstanding P3 acne results, and forward-looking development plans for F4C in combination with Madrigal Pharmaceuticals' (MDGL: Nasdaq, Buy,
$431 PT) REZDIFFRA, all underpinned by a solid
$135.5M cash position (runway into 2027), and anticipated readouts from ongoing P1 trials, together position SGMT as a compelling growth story. Even under conservative valuation metrics, comparable to Boston Pharma's recent
$1.2B upfront acquisition, our
$29 PT implies substantial upside relative to SGMT's current
$188M EV.
