William Blair downgrades Applied Therapeutics on revenue uncertainty

William Blair downgraded Applied Therapeutics (APLT) to Market Perform from Outperform without a price target While the management turnover “was a necessary step in beginning to rebuild the company s reputation and credibility,” Applied’s business update makes it increasingly unclear when it could begin generating revenue given the marketing authorization application in galactosemia was withdrawn and the new drug application in sorbitol dehydrogenase will no longer be submitted in Q1, the analyst tells investors in a research note. Blair sees the company as bearing increased financial risk given its limited cash runway. The stock will continue to trade at current levels until there is a line of sight into when or how either govo-restat program will progress toward registration, contends the firm.