Hold Rating for Applied Therapeutics Amid Mixed Results from Govorestat Trial

William Blair analyst Sami Corwin has reiterated their neutral stance on APLT stock, giving a Hold rating on May 13.

Sami Corwin’s rating is based on a combination of factors related to the recent data presented by Applied Therapeutics. The company shared updated results from their Phase II/III INSPIRE trial for govorestat, a treatment for sorbitol dehydrogenase deficiency, at a recent conference. While the data showed a significant reduction in blood sorbitol levels, the primary and secondary clinical endpoints did not achieve statistical significance. This raises questions about the effectiveness of the 10-meter walk-run test as a measure of disease progression.
Despite the lack of statistical significance in some clinical endpoints, there was a notable correlation between sorbitol reduction and improvements in certain clinical measures. The reduction in sorbitol was consistent over 18 and 24 months, and there was a significant correlation with changes in the 10MWRT and the CMT-FOM Lower Limb domain at 12 months. These mixed results suggest potential but also highlight uncertainties, leading to a Hold rating as the company seeks further clarity through a pre-NDA meeting.

In another report released on May 13, RBC Capital also maintained a Hold rating on the stock with a $1.50 price target.