Sagimet Biosciences Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing fatty acid synthase (FASN) inhibitors for metabolic and fibrotic diseases, experienced a notable increase in total current assets, which rose to $157.2 million from $96.6 million as of December 31, 2023. Cash and cash equivalents slightly increased to $77.0 million, while short-term marketable securities surged to $75.5 million from $19.8 million.

Despite these asset increases, Sagimet reported no license revenue for the quarter, a decline from $2.0 million in the same period last year. Research and development expenses escalated significantly to $12.7 million, up from $5.0 million, reflecting a 155% increase. Total operating expenses for the quarter reached $16.9 million, compared to $9.5 million in the prior year, leading to a loss from operations of $16.9 million, a 127% increase year-over-year. The net loss for the quarter was $14.6 million, compared to $6.4 million in Q3 2023, marking a 130% increase.

For the nine months ended September 30, 2024, the net loss totaled $29.4 million, up from $19.7 million in the same period of 2023. The company’s accumulated deficit increased to $279.1 million. Cash used in operating activities also rose to $31.4 million, compared to $16.7 million in the previous year, primarily funding clinical development and manufacturing activities for its lead drug candidate, denifanstat.

Sagimet's strategic initiatives included a successful follow-on offering in January 2024, raising $104.7 million from the sale of 9 million shares of Series A common stock. The company also established an at-the-market offering to sell up to $75.0 million of Series A common stock, although no sales were made during the reporting period.

The company’s lead drug candidate, denifanstat, received Breakthrough Therapy designation from the FDA in October 2024 for the treatment of non-cirrhotic metabolic dysfunction-associated steatohepatitis (MASH) with moderate to advanced liver fibrosis. Sagimet plans to initiate two Phase 3 trials by the end of 2024, further advancing its clinical pipeline.

Overall, while Sagimet Biosciences Inc. has strengthened its financial position through capital raises, it continues to face challenges in revenue generation and increasing operational losses as it invests heavily in research and development.