Applied Therapeutics To Lay Off Nearly Half Its Staff, Board Explores M&A Options

• The company stated that there is no deadline for the strategic alternative finding process.
• The firm also noted that it intends to request an additional meeting with the FDA to decide on a design for its late-stage study of Govorestat for the treatment of Charcot-Marie-Tooth Sorbitol Dehydrogenase Deficiency.

Applied Therapeutics, Inc. (APLT) said on Thursday that it is laying off approximately 46% of its workforce as it seeks to conserve cash, while its Board of Directors explores strategic alternatives for the company.

The board is considering mergers, acquisitions, partnerships, joint ventures, licensing arrangements, or other strategic transactions to maximise shareholder value, the company said. There is no deadline for the process, Applied Therapeutics noted, while also adding that the review might not result in a transaction.

Drug Pipeline Updates

The company also said it intends to request an additional meeting with the U.S. Food and Drug Administration to decide on a design for its late-stage study of Govorestat for the treatment of Charcot-Marie-Tooth Sorbitol Dehydrogenase (SORD) Deficiency. In this disorder, the body can’t properly metabolize sorbitol, leading to its toxic accumulation that damages peripheral nerves and causes progressive symptoms like limb weakness, numbness, and difficulty walking.

The company held a meeting with the FDA in the third quarter and is now evaluating the meeting minutes and follow-up correspondence.

It is also evaluating the next steps for developing Govorestat for the treatment of Classic Galactosemia, a disorder in which the body cannot break down the sugar galactose.  

Govorestat is the company’s lead drug candidate for the treatment of CNS rare metabolic diseases or inherited conditions affecting the brain, such as Classic Galactosemia, Charcot-Marie-Tooth Sorbitol Dehydrogenase Deficiency, and phosphomannomutase 2 congenital disorder of glycosylation.

How Did Stocktwits Users React?

APLT shares traded marginally in the red at the time of writing. On Stocktwits, retail sentiment stayed within the ‘extremely bullish’ territory over the past 12 months while message volume stayed at ‘extremely high’ levels.

APLT shares fell 67% this year and by 97% over the past 12 months. 

Also See: Moderna Secures $1.5B Credit Facility As It Seeks To Pivot Away From Vaccines

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