NGM Biopharmaceuticals (NGM)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
NGM Biopharmaceuticals (NGM) trades at $1.54 with AI Score 49/100 (Grade C). NGM Biopharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing novel therapeutics for liver, metabolic, and retinal diseases, as well as cancer. Market cap: $128.53M, Sector: Healthcare.
Last analyzed: May 10, 2026Analyst Coverage for NGM: NGM does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates NGM against Healthcare peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
NGM: 3/7 perspectives are bearish. Dominant signal: Seth Klarman bearish.
NGM Biopharmaceuticals (NGM) Healthcare & Pipeline Overview
NGM Biopharmaceuticals, Inc. is a clinical-stage biotechnology firm specializing in novel therapeutics for liver, metabolic, and retinal diseases, and cancer. Their pipeline features Aldafermin and MK-3655, both in Phase IIb trials targeting NASH and type 2 diabetes, positioning them in a competitive landscape focused on unmet medical needs.
What Is the Investment Thesis for NGM?
NGM Biopharmaceuticals presents a high-risk, high-reward investment profile typical of clinical-stage biotech companies. The primary value driver is the successful completion of Phase IIb trials for Aldafermin and MK-3655, targeting the large and growing NASH and type 2 diabetes markets. Positive data readouts could significantly increase the company's market capitalization, which currently stands at $0.13 billion. Key catalysts include upcoming clinical trial results and potential partnership agreements. However, the company's negative profit margin of -3223.3% underscores the need for successful commercialization or strategic partnerships to achieve profitability. The company's beta of 1.26 suggests higher volatility compared to the broader market. Investors should closely monitor clinical trial progress, regulatory developments, and cash burn rate.
Based on FMP financials and quantitative analysis
NGM Key Highlights
- Market capitalization of $0.13 billion reflects the company's current valuation in the biotechnology sector.
- Gross margin of 49.7% indicates the potential for profitability upon successful commercialization of its product candidates.
- Negative profit margin of -3223.3% highlights the significant R&D expenses associated with clinical-stage drug development.
- Aldafermin and MK-3655 are in Phase IIb clinical trials, targeting the large NASH and type 2 diabetes markets.
- Collaboration agreements with Merck Sharp & Dohme Corp. and Merck & Co., Inc. provide financial support and validation of NGM's research programs.
Who Are NGM's Competitors?
NGM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| GILD Gilead Sciences, Inc. | $124.75 | -0.89% | $154.89B | 55 |
| ICPT Intercept Pharmaceuticals, Inc. | $19.00 | +0.21% | $794.69M | 51 |
| MRK Merck & Co., Inc. | $119.99 | -0.64% | $296.35B | 64 |
| SNDX Syndax Pharmaceuticals, Inc. | $18.02 | +0.61% | $1.60B | 79 |
| ANAB AnaptysBio, Inc. | $54.24 | +4.11% | $2.34B | 79 |
| ABCL AbCellera Biologics Inc. | $5.23 | -0.76% | $1.60B | 76 |
| CGEN Compugen Ltd. | $2.02 | -0.98% | $191.00M | 76 |
| NWPHF Newron Pharmaceuticals S.p.A. | $20.00 | +0.00% | $416.12M | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are NGM's Key Strengths?
- Innovative drug discovery platform.
- Strong pipeline of clinical-stage drug candidates.
- Strategic collaborations with major pharmaceutical companies.
- Experienced management team.
What Are NGM's Weaknesses?
- High cash burn rate due to significant R&D expenses.
- Reliance on successful clinical trial outcomes.
- Limited revenue generation prior to commercialization.
- Negative profit margin.
What Could Drive NGM Stock Higher?
- Data readout from Phase IIb clinical trial of Aldafermin for NASH (expected in late 2026).
- Data readout from Phase IIb clinical trial of MK-3655 for type 2 diabetes and NASH (expected in early 2027).
- Progress in Phase I/II clinical trials for NGM120 and NGM707.
- Potential for new strategic partnerships and collaborations.
- Advancements in the development of NGM621 for geographic atrophy.
What Are the Key Risks for NGM?
- Failure of Aldafermin or MK-3655 in Phase IIb or subsequent clinical trials.
- Regulatory delays or rejection of NGM's drug candidates.
- High cash burn rate and need for additional financing.
- Competition from other companies developing therapies for the same indications.
- Patent challenges or loss of intellectual property protection.
What Are the Growth Opportunities for NGM?
- Aldafermin for NASH: The NASH market is projected to reach billions of dollars in the next decade. Positive Phase IIb results for Aldafermin could position NGM as a key player in this space. The timeline for potential FDA approval and commercialization is estimated to be 3-5 years, contingent on successful Phase III trials. NGM's competitive advantage lies in Aldafermin's unique mechanism of action as an FGF19 analog.
- MK-3655 for Type 2 Diabetes and NASH: MK-3655 targets both type 2 diabetes and NASH, offering a dual-pronged approach to address these interconnected metabolic diseases. The global type 2 diabetes market is substantial, providing a significant commercial opportunity. Positive Phase IIb data could lead to partnerships or further development, with a similar 3-5 year timeline for potential commercialization. The competitive advantage lies in its agonistic antibody mechanism targeting fibroblast growth factor receptor 1c-beta-klotho.
- NGM621 for Geographic Atrophy: NGM621, currently in Phase II clinical trials, targets geographic atrophy, a significant cause of vision loss. The market for geographic atrophy treatments is growing, driven by an aging population. Successful trial outcomes could lead to a valuable asset in the retinal disease space, with potential commercialization within 4-6 years. Its competitive advantage is its immunoglobulin 1 monoclonal antibody mechanism.
- NGM707 for Advanced Solid Tumors: NGM707, a dual antagonist monoclonal antibody, is in Phase I/II trials for advanced solid tumors. The oncology market is vast, and successful development could lead to significant revenue streams. The timeline for potential commercialization is longer, estimated at 5-7 years, due to the early stage of development. Its competitive advantage lies in its dual-targeting mechanism of immunoglobulin-like transcript 2/immunoglobulin-like transcript 4.
- Strategic Partnerships: NGM's existing collaborations with Merck Sharp & Dohme Corp. and Merck & Co., Inc. provide a foundation for future partnerships. Expanding these collaborations or securing new partnerships could provide additional funding, expertise, and market access. The timeline for new partnerships is variable, but ongoing discussions and data readouts could catalyze new agreements within the next 1-2 years. These partnerships validate NGM's research and development capabilities.
What Opportunities Does NGM Have?
- Growing market for NASH and type 2 diabetes therapies.
- Potential for new strategic partnerships.
- Expansion of pipeline into new therapeutic areas.
- Positive clinical trial results leading to regulatory approvals.
What Threats Does NGM Face?
- Clinical trial failures.
- Regulatory setbacks.
- Competition from other pharmaceutical and biotechnology companies.
- Patent challenges.
What Are NGM's Competitive Advantages?
- Proprietary drug discovery platform generates novel therapeutic candidates.
- Strong intellectual property portfolio protects its drug candidates.
- Strategic collaborations with major pharmaceutical companies validate its technology.
- Experienced management team with expertise in drug development and commercialization.
What Does NGM Do?
NGM Biopharmaceuticals, Inc., founded in 2007 and headquartered in South San Francisco, California, is a biopharmaceutical company dedicated to the discovery and development of innovative therapeutics. The company focuses on addressing unmet medical needs in liver and metabolic diseases, retinal diseases, and cancer. NGM's lead product candidate, Aldafermin, is an engineered analog of the human hormone fibroblast growth factor 19 (FGF19), currently in Phase IIb clinical trials for the treatment of non-alcoholic steatohepatitis (NASH). Another key asset, MK-3655, is an agonistic antibody that activates fibroblast growth factor receptor 1c-beta-klotho, also in Phase IIb trials for treating type 2 diabetes and NASH. NGM's broader pipeline includes NGM120, an antagonist antibody targeting GFRAL, in Phase I/II trials; NGM621, an immunoglobulin 1 monoclonal antibody in Phase II trials for geographic atrophy; and NGM707, a dual antagonist monoclonal antibody targeting immunoglobulin-like transcript 2/immunoglobulin-like transcript 4, in Phase I/II trials for advanced solid tumors. Additionally, NGM is developing NGM831 and NGM438 for advanced solid tumors. The company collaborates with Merck Sharp & Dohme Corp. and Merck & Co., Inc., focusing on developing novel medicines for retinal and cardiovascular-metabolic (CVM) diseases, including heart failure. NGM operates with a team of 138 employees, striving to translate innovative science into impactful therapies.
What Products and Services Does NGM Offer?
- Discovers and develops novel therapeutics for liver diseases.
- Focuses on treatments for metabolic diseases like type 2 diabetes and NASH.
- Develops therapies for retinal diseases, including geographic atrophy.
- Engages in research and development of cancer treatments.
- Conducts clinical trials to evaluate the safety and efficacy of its product candidates.
- Collaborates with pharmaceutical companies for research and development.
- Utilizes engineered analogs and antibodies to target specific disease pathways.
How Does NGM Make Money?
- Develops proprietary drug candidates through internal research and development.
- Out-licenses or co-develops drug candidates with larger pharmaceutical companies.
- Generates revenue through milestone payments and royalties from partnered programs.
- Funds research and development through equity financing and strategic collaborations.
What Industry Does NGM Operate In?
NGM Biopharmaceuticals operates within the highly competitive biotechnology industry, characterized by intense research and development, stringent regulatory requirements, and high capital needs. The company focuses on liver, metabolic, and retinal diseases, and cancer, aligning with significant unmet medical needs and large market opportunities. The NASH market, in particular, is expected to grow substantially in the coming years, driven by the increasing prevalence of obesity and diabetes. Competition includes established pharmaceutical companies and other biotech firms developing novel therapies for these indications.
Who Are NGM's Key Customers?
- Large pharmaceutical companies seeking to expand their pipelines.
- Patients suffering from liver, metabolic, and retinal diseases, and cancer.
- Healthcare providers who prescribe and administer NGM's therapies.
- Research institutions and collaborators involved in clinical trials.
NGM Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests those in the know see value, a potentially strong signal.
- The community seems optimistic about NGM's pipeline, particularly their lead drug candidate.
- Market perception is shifting towards biotech companies with promising mid-stage clinical trials.
- There's a growing belief that NGM is an attractive acquisition target for larger pharma.
Bear Case
- Some insiders may be selling shares for personal reasons unrelated to company performance.
- Community sentiment can be fickle; today's darling could be tomorrow's disappointment.
- The market is increasingly risk-averse due to macroeconomic uncertainty, impacting biotech valuations.
- Competition in NGM's therapeutic areas is fierce, with larger players having deeper pockets.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · January 2026
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NGM Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NGM.
Price Targets
Wall Street price target analysis for NGM.
NGM MoonshotScore
What does this score mean?
The MoonshotScore rates NGM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
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Leadership: David J. Woodhouse
Chief Executive Officer
David J. Woodhouse serves as the Chief Executive Officer of NGM Biopharmaceuticals, Inc. His career spans several leadership roles in the biotechnology and pharmaceutical industries. Prior to joining NGM, he held positions at various companies, contributing to drug development and strategic planning. Woodhouse brings extensive experience in managing clinical-stage programs and navigating the regulatory landscape. His expertise is crucial for guiding NGM through its clinical trials and potential commercialization phases. He manages 138 employees.
Track Record: Under David J. Woodhouse's leadership, NGM Biopharmaceuticals has advanced its key drug candidates, Aldafermin and MK-3655, into Phase IIb clinical trials. He has overseen strategic collaborations with Merck Sharp & Dohme Corp. and Merck & Co., Inc., enhancing the company's financial stability and research capabilities. His focus on pipeline development and strategic partnerships has positioned NGM for potential future growth.
NGM Healthcare Stock FAQ
What does NGM Biopharmaceuticals, Inc. do?
NGM Biopharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing novel therapeutics for liver, metabolic, and retinal diseases, as well as cancer. Their pipeline includes Aldafermin for NASH, an engineered analog of human hormone fibroblast growth factor 19, and MK-3655 for type 2 diabetes and NASH, an agonistic antibody that activates fibroblast growth factor receptor 1c-beta-klotho. Both are currently in Phase IIb clinical trials. The company also has several other products in earlier stages of development.
What do analysts say about NGM stock?
Analyst coverage of NGM Biopharmaceuticals is limited, reflecting its small market capitalization and clinical-stage status. Consensus estimates vary widely depending on the perceived probability of success for Aldafermin and MK-3655. Key valuation metrics include potential peak sales for these drug candidates and the company's cash runway. Investors should carefully consider the risks and uncertainties associated with clinical-stage biotech companies before investing. Analyst opinions are subject to change based on clinical trial results and regulatory developments.
What are the main risks for NGM?
The main risks for NGM Biopharmaceuticals include clinical trial failures, regulatory setbacks, and competition from other companies developing therapies for the same indications. The company's high cash burn rate and reliance on successful clinical trial outcomes also pose significant risks. Additionally, patent challenges and the loss of intellectual property protection could negatively impact the company's value. Investors should carefully assess these risks before investing in NGM.
How does NGM Biopharmaceuticals, Inc. navigate regulatory approval processes?
NGM Biopharmaceuticals navigates regulatory approval processes primarily through adherence to FDA guidelines and close collaboration with regulatory agencies. The company conducts rigorous preclinical and clinical trials to generate data supporting the safety and efficacy of its drug candidates. NGM also engages in ongoing communication with the FDA to address any concerns and ensure compliance with regulatory requirements. Successful navigation of these processes is critical for obtaining regulatory approvals and commercializing its products.
What revenue streams does NGM Biopharmaceuticals, Inc. have in healthcare?
As a clinical-stage biopharmaceutical company, NGM Biopharmaceuticals currently generates limited revenue primarily through collaboration agreements and milestone payments from partners like Merck Sharp & Dohme Corp. and Merck & Co., Inc. The company does not yet have any products approved for commercial sale. Future revenue streams will depend on the successful development and commercialization of its drug candidates, including Aldafermin and MK-3655. Royalties from partnered programs could also contribute to future revenue.
What are the key factors to evaluate for NGM?
NGM Biopharmaceuticals (NGM) holds an AI score of 49/100 (low). Not financial advice.
How frequently does NGM data refresh on this page?
NGM prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven NGM's recent stock price performance?
NGM Biopharmaceuticals (NGM) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Innovative drug discovery platform. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on publicly available sources and may be subject to change.
- Clinical trial outcomes are inherently uncertain and may impact the company's future prospects.