Sagimet Biosciences Reports $10.4 Million Net Loss in Q2 2025, Driven by Rising Operating Expenses

Sagimet Biosciences Inc. reported a net loss of $10.4 million for the second quarter of 2025, compared to a loss of $8.1 million in the same period of the previous year, marking a 28% increase in losses. For the first half of 2025, the company’s net loss reached $28.6 million, nearly double the $14.7 million loss reported for the first half of 2024. The increase in losses is attributed to a significant rise in operating expenses, which totaled $31.8 million for the six months ended June 30, 2025, up 64% from $19.4 million in the prior year. This increase was primarily driven by a 95% surge in research and development expenses, reflecting ongoing clinical trials and development activities for its lead drug candidate, denifanstat.

In terms of financial position, Sagimet's total assets decreased to $137.4 million as of June 30, 2025, down from $160.3 million at the end of 2024. The company’s cash and cash equivalents also fell significantly, from $75.8 million at the end of 2024 to $42.3 million by mid-2025. This decline in cash reserves is largely due to increased spending on clinical trials and operational costs. The company reported total liabilities of $7.2 million, up from $4.5 million at the end of the previous fiscal year, indicating a rise in accrued expenses and accounts payable.

Strategically, Sagimet has made notable advancements in its clinical programs. The company’s lead candidate, denifanstat, has received Breakthrough Therapy designation from the FDA for the treatment of metabolic dysfunction-associated steatohepatitis (MASH) and has shown promising results in clinical trials. In June 2025, Sagimet's partner, Ascletis BioScience, announced that denifanstat met all primary and secondary endpoints in a Phase 3 trial for moderate to severe acne. Additionally, the company initiated a Phase 1 clinical trial for its second drug candidate, TVB-3567, in June 2025, further expanding its pipeline.

Operationally, Sagimet has increased its workforce to support its growing clinical and administrative needs, although specific employee headcount figures were not disclosed. The company continues to rely on external funding sources, including public and private equity, to finance its operations. As of June 30, 2025, Sagimet had cash, cash equivalents, and marketable securities totaling $135.5 million, which it expects will be sufficient to fund operations for at least the next 12 months. However, the company acknowledges the need for additional capital to support ongoing and future clinical trials, as well as to expand its corporate infrastructure.

Looking ahead, Sagimet plans to continue advancing its clinical programs, with a focus on securing funding for Phase 3 trials of denifanstat in MASH and exploring potential combination therapies. The company remains optimistic about its drug candidates' prospects but recognizes the inherent risks and uncertainties associated with drug development and regulatory approval processes.