Analyst Joseph Schwartz of Leerink Partners reiterated a Buy rating on Applied Therapeutics, with a price target of $3.00.
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Joseph Schwartz has given his Buy rating due to a combination of factors that highlight Applied Therapeutics’ strategic positioning and potential for future growth. The company has been actively engaging with the FDA to determine a regulatory path forward for govorestat in the treatment of SORD deficiency, which could lead to a new drug application submission. This engagement signals a commitment to advancing their pipeline despite previous regulatory setbacks.
Additionally, the data from the Phase 2/3 INSPIRE study, although not meeting the primary endpoint, showed promising results in terms of sorbitol reduction and patient-reported outcomes, suggesting a potential slowdown in disease progression. The mechanism of action for govorestat aligns well with the pathophysiology of SORD deficiency, providing a strong scientific rationale for its continued development. Furthermore, the company’s initiative to sponsor a Urine Sorbitol Assay at no cost to patients and caregivers is a strategic move to facilitate the identification of SORD patients, which could enhance patient recruitment and support future clinical trials.
According to TipRanks, Schwartz is a 5-star analyst with an average return of 17.3% and a 49.09% success rate. Schwartz covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, uniQure, and Ascendis Pharma.