Sagimet Biosciences Reports $18.2 Million Net Loss and Advances Clinical Pipeline

Sagimet Biosciences Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $18.2 million, a substantial increase from the $6.6 million loss reported in the same period last year, marking a 174% rise. Total operating expenses surged to $19.9 million, up from $8.8 million in the prior year, driven primarily by a 192% increase in research and development costs, which reached $15.3 million compared to $5.3 million in the previous year. This increase reflects the company's ongoing investment in clinical trials, particularly for its lead drug candidate, denifanstat.

In terms of liquidity, Sagimet's cash, cash equivalents, and marketable securities totaled $144.6 million as of March 31, 2025, a decrease from $160.3 million at the end of 2024. The company utilized $14.5 million in cash for operating activities during the quarter, primarily funding clinical development and corporate infrastructure. The company has not generated revenue from product sales, relying instead on financing from public and private equity offerings, including a follow-on offering in January 2024 that raised $104.7 million.

Strategically, Sagimet has made notable advancements in its clinical pipeline. The company successfully completed a Phase 2b clinical trial for denifanstat, which targets metabolic dysfunction-associated steatohepatitis (MASH). The trial yielded positive results, leading to the drug's designation as a Breakthrough Therapy by the FDA. Additionally, Sagimet received Investigational New Drug (IND) clearance for its second FASN inhibitor, TVB-3567, which is set to enter a Phase 1 clinical trial for acne in the second half of 2025.

Operationally, the company has expanded its workforce, with a notable increase in personnel costs contributing to the rise in general and administrative expenses, which grew by 29% to $4.5 million. Sagimet's employee headcount is expected to continue increasing as the company scales its operations to support ongoing clinical trials and regulatory submissions. The company is also exploring various funding options to support its Phase 3 clinical trials for denifanstat, indicating a proactive approach to securing the necessary capital for future growth.

Looking ahead, Sagimet anticipates continued losses as it invests heavily in research and development. The company expects its existing cash reserves to sustain operations for at least the next 12 months, but it acknowledges the need for additional funding to support its clinical programs and corporate infrastructure. The management remains optimistic about the potential of its drug candidates and is focused on advancing them through the necessary regulatory pathways.