The Applied Therapeutics IPO: What You Need To Know

If you haven’t found a cure for your fading portfolio in the Street’s hundreds of biotechs, one market newbie wants a shot.

The IPO

Applied Therapeutics Inc. will issue 4 million shares on the Nasdaq under ticker APLT, according to the firm’s S-1 filing. Priced between $14 and $16, the offering represents 23.5 percent of outstanding shares and is expected to bring in about $73.6 million.

The underwriters include Citigroup, Cowen and UBS.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

The pharmaceutical company launched in 2016 to develop therapies for conditions with a high unmet need.

Its AT-001 candidate will enter a Phase 2/3 study this year for diabetic cardiomyopathy and continue early stage trials for diabetic peripheral neuropathy and acute myocardial infarction. Management estimates about 77 million patients suffer from the primary indication, a fatal heart fibrosis with no available treatment.

Meanwhile, AT-007 will enter a Phase 1 trial in 2019 for galactosemia, and AT-003 will begin a Phase 1 trial in 2020 for diabetic retinopathy.

The Finances

In 2018, Applied Therapeutics recorded a $16.52-million net loss. The previous year saw a loss of just $4.28 million.

Applied Therapeutics has not yet generated revenue.

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