William Blair has initiated coverage on Applied Therapeutics (NASDAQ: NASDAQ:APLT) with an Outperform rating in view of the company's potential in the rare disease space.
The firm's analyst, on Wednesday, pointed out that Applied Therapeutics is progressing with a portfolio of drugs aimed at rare diseases and broader indications, with significant milestones expected in the upcoming year.
The company's new drug application for govorestat (AT-007), designed to treat galactosemia, is currently under review by the FDA. Galactosemia is a rare genetic disorder with no approved treatments, affecting approximately 3,000 individuals in the United States and around 7,000 worldwide. Patients with this condition cannot properly metabolize the sugar galactose, leading to severe neurological issues.
The analyst from William Blair noted that govorestat has demonstrated clear efficacy in combating galactosemia, which is caused by mutations that result in enzyme deficiencies. The condition's systemic nature suggests that a small-molecule drug like govorestat, capable of reaching multiple tissues, may be more effective than gene therapies or biologics.
InvestingPro Insights
As Applied Therapeutics (NASDAQ:APLT) navigates the regulatory pathway for its promising drug govorestat, investors and analysts are closely monitoring the company’s financial health and market performance. According to InvestingPro data, Applied Therapeutics boasts a market capitalization of approximately $569.05 million, illustrating a sizeable presence in the biotech industry. Despite the absence of profitability in the last twelve months, the company holds an intriguing position with more cash than debt on its balance sheet, which could provide some financial flexibility moving forward.
While the company's stock has experienced significant volatility, it has also delivered a high return over the last year, with a 179.78% price total return. This performance is coupled with a large price uptick over the last six months, indicating a surge of investor confidence possibly tied to the anticipated FDA decision on govorestat. However, it's worth noting that analysts have revised their earnings expectations downwards for the upcoming period and anticipate a sales decline in the current year.
For those looking to delve deeper into Applied Therapeutics' future prospects and financial details, InvestingPro offers additional insights. Currently, there are 9 more InvestingPro Tips available, providing a comprehensive analysis of the company's financials and market potential. Readers interested in these valuable insights can use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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