NGM Biopharmaceuticals (NGM)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, 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 (Weak). NGM Biopharmaceuticals is a clinical-stage biopharmaceutical company focused on developing novel therapeutics for the treatment of liver, metabolic, and retinal diseases, as well as cancer. Market cap: 129M, Sector: Healthcare.
Last analyzed: Feb 8, 2026NGM Biopharmaceuticals (NGM) Healthcare & Pipeline Overview
NGM Biopharmaceuticals pioneers innovative therapies for liver, metabolic, and retinal diseases, and cancer, leveraging its robust pipeline led by Aldafermin and MK-3655 in Phase IIb trials, and strategic collaborations with Merck, positioning it for significant growth in high-need therapeutic areas.
Investment Thesis
NGM Biopharmaceuticals presents a notable research candidate due to its promising pipeline of novel therapeutics targeting significant unmet needs in liver, metabolic, retinal diseases, and cancer. The lead asset, Aldafermin, targeting NASH, a market projected to reach billions of dollars, is a key value driver. Positive Phase IIb clinical trial results for Aldafermin and MK-3655 could serve as significant catalysts, driving stock appreciation. Strategic collaborations with Merck further validate NGM's technology and provide financial support. With a market cap of $0.13 billion and a gross margin of 49.7%, NGM offers substantial upside potential if clinical trials are successful and lead to commercialization.
Based on FMP financials and quantitative analysis
Key Highlights
- Market capitalization of $0.13 billion indicates potential for growth if clinical trials are successful.
- Gross margin of 49.7% demonstrates the company's ability to generate revenue from its collaborations and early-stage assets.
- P/E ratio of -0.89 reflects the company's current lack of profitability due to ongoing R&D investments.
- Beta of 1.26 suggests the stock is more volatile than the market average.
- Strategic collaborations with Merck provide financial resources and validation of NGM's technology.
Competitors & Peers
Strengths
- Promising pipeline of novel therapeutics.
- Strategic collaborations with Merck.
- Experienced management team.
- Strong intellectual property portfolio.
Weaknesses
- Limited financial resources.
- Dependence on clinical trial outcomes.
- Lack of commercialized products.
- High cash burn rate.
Catalysts
- Upcoming: Data readout from Phase IIb clinical trial of Aldafermin for NASH.
- Upcoming: Data readout from Phase IIb clinical trial of MK-3655 for type 2 diabetes and NASH.
- Ongoing: Enrollment and progress in Phase I/II clinical trials of NGM120 and NGM707.
- Ongoing: Advancement of NGM621 through Phase II clinical trials for geographic atrophy.
- Ongoing: Potential for new collaborations and licensing agreements.
Risks
- Potential: Clinical trial failures could significantly impact the company's valuation.
- Potential: Regulatory delays or rejection of product candidates.
- Ongoing: Competition from other companies developing therapies for the same indications.
- Ongoing: Dependence on collaborations with Merck for financial support and development expertise.
- Potential: Difficulty in raising additional capital to fund ongoing research and development.
Growth Opportunities
- Aldafermin for NASH: The NASH market is expected to grow significantly in the coming years, driven by the rising prevalence of obesity and diabetes. Aldafermin, currently in Phase IIb trials, has the potential to capture a significant share of this market if approved. Success in clinical trials and subsequent commercialization could generate substantial revenue for NGM.
- MK-3655 for Type 2 Diabetes and NASH: MK-3655, also in Phase IIb trials, targets both type 2 diabetes and NASH, offering a dual-pronged approach to these metabolic diseases. The global type 2 diabetes market is substantial, and a successful therapy could provide significant growth opportunities for NGM. Positive clinical data could attract further partnerships and investment.
- NGM621 for Geographic Atrophy: NGM621, an immunoglobulin 1 monoclonal antibody in Phase II clinical trials, targets geographic atrophy, a significant unmet need in retinal diseases. The market for geographic atrophy therapies is growing, and successful development of NGM621 could position NGM as a key player in this space. Data readouts from the Phase II trials will be a key catalyst.
- NGM707 for Advanced Solid Tumors: NGM707, a dual antagonist monoclonal antibody, is in Phase I/II clinical trials for the treatment of patients with advanced solid tumors. The oncology market is vast, and successful development of NGM707 could provide significant growth opportunities for NGM. Early clinical data will be crucial in determining the future of this program.
- Strategic Collaborations with Merck: NGM's collaborations with Merck provide access to resources, expertise, and potential revenue streams. These partnerships focus on developing novel medicines for retinal and cardiovascular metabolic (CVM) diseases, including heart failure. Continued success in these collaborations could lead to further expansion of NGM's pipeline and market reach.
Opportunities
- Successful clinical trial results.
- Expansion of pipeline through internal discovery and collaborations.
- Partnerships for commercialization of approved therapies.
- Growing market for NASH and other target diseases.
Threats
- Clinical trial failures.
- Regulatory hurdles.
- Competition from other pharmaceutical and biotechnology companies.
- Patent challenges.
Competitive Advantages
- Proprietary drug discovery platform.
- Strong intellectual property portfolio.
- Strategic collaborations with major pharmaceutical companies.
- Experienced management team with expertise in drug development.
About NGM
NGM Biopharmaceuticals, Inc., founded in 2007 and headquartered in South San Francisco, California, is a biopharmaceutical company dedicated to discovering and developing novel therapeutics. The company focuses on addressing unmet medical needs in liver and metabolic diseases, retinal diseases, and cancer. NGM's approach involves leveraging its scientific understanding of key biological pathways to create innovative treatments. Their 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 clinical trials for the treatment of type 2 diabetes and NASH. NGM is also developing NGM120, an antagonist antibody targeting GFRAL, in Phase I/II trials, NGM621, an immunoglobulin 1 monoclonal antibody in Phase II clinical trials for the treatment of geographic atrophy, and NGM707, a dual antagonist monoclonal antibody targeting immunoglobulin-like transcript 2 and 4, in Phase I/II trials for advanced solid tumors. The company has established strategic research collaborations, product development, and license agreements with Merck Sharp & Dohme Corp. and Merck & Co., Inc., focusing on developing novel medicines for retinal and cardiovascular metabolic (CVM) diseases, including heart failure.
What They Do
- Discovers and develops novel therapeutics.
- Focuses on liver and metabolic diseases.
- Develops treatments for retinal diseases.
- Creates therapies for cancer.
- Conducts clinical trials to evaluate product candidates.
- Partners with pharmaceutical companies for research and development.
Business Model
- Develops and out-licenses novel therapeutics.
- Generates revenue through research collaborations and licensing agreements.
- Advances product candidates through clinical trials.
- Seeks partnerships for commercialization of approved therapies.
Industry Context
NGM Biopharmaceuticals operates within the biotechnology industry, which is characterized by high growth potential and significant investment in research and development. The industry is driven by the increasing prevalence of chronic diseases, such as NASH, type 2 diabetes, and cancer. The competitive landscape includes established pharmaceutical companies and other biotech firms, such as aTyr Pharma (ATYR), DBTx (DBTX), Graybug Vision (GRAY), Kintara Therapeutics (KNTE), and Pardes Biosciences (PRDS), all vying for market share in these therapeutic areas. NGM differentiates itself through its focus on novel biological pathways and strategic partnerships.
Key Customers
- Patients with liver diseases, such as NASH.
- Patients with metabolic diseases, such as type 2 diabetes.
- Patients with retinal diseases, such as geographic atrophy.
- Patients with advanced solid tumors.
- Pharmaceutical companies through collaborations and licensing agreements.
Financials
Chart & Info
NGM Biopharmaceuticals (NGM) stock price: $1.54 (-0.02, -1.28%)
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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.
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.
Competitors & Peers
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NGM Healthcare Stock FAQ
What does NGM Biopharmaceuticals, Inc. do?
NGM Biopharmaceuticals is a clinical-stage biopharmaceutical company focused on discovering and developing novel therapeutics for the treatment of liver, metabolic, and retinal diseases, as well as cancer. Their pipeline includes product candidates like Aldafermin, an engineered analog of human hormone fibroblast growth factor 19, which is in Phase IIb clinical trials for the treatment of non-alcoholic steatohepatitis (NASH). The company also has strategic collaborations with Merck to develop novel medicines for retinal and cardiovascular metabolic diseases, highlighting its commitment to addressing unmet medical needs through innovative research and development.
Is NGM stock worth researching?
NGM Biopharmaceuticals presents a speculative investment opportunity with high potential upside and significant risks. The company's pipeline, particularly Aldafermin for NASH and MK-3655 for type 2 diabetes and NASH, offers substantial growth potential if clinical trials are successful. However, the company's negative P/E ratio and dependence on clinical trial outcomes make it a high-risk investment. Investors should carefully consider their risk tolerance and conduct thorough due diligence before investing in NGM stock. Positive data readouts could drive significant stock appreciation.
What are the main risks for NGM?
NGM Biopharmaceuticals faces several key risks, including the potential for clinical trial failures, regulatory hurdles, and competition from other companies developing therapies for the same indications. The company's dependence on collaborations with Merck for financial support and development expertise also poses a risk. Additionally, NGM may face challenges in raising additional capital to fund ongoing research and development. These risks are inherent in the biotechnology industry and could significantly impact the company's valuation and future prospects.
What are the key factors to evaluate for NGM?
NGM Biopharmaceuticals (NGM) currently holds an AI score of 49/100, indicating low score. Key strength: Promising pipeline of novel therapeutics.. Primary risk to monitor: Potential: Clinical trial failures could significantly impact the company's valuation.. This is not financial advice.
How frequently does NGM data refresh on this page?
NGM prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven NGM's recent stock price performance?
Recent price movement in NGM Biopharmaceuticals (NGM) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Promising pipeline of novel therapeutics.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider NGM overvalued or undervalued right now?
Determining whether NGM Biopharmaceuticals (NGM) is overvalued or undervalued requires examining multiple metrics. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying NGM?
Before investing in NGM Biopharmaceuticals (NGM), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
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. Investment decisions should be based on individual risk tolerance and due diligence.