Applied Therapeutics Raises $40 Million in IPO to Advance Clinical Trials for Diabetic Complications

Recently, VCBeat (WeChat Official Account: vcbeat) learned that Applied Therapeutics (NASDAQ: APLT) priced its public offering of 4 million shares of common stock at $10 per share. Notably, this price is below the previously announced range of $14–$16. Cowen and UBS Investment Bank served as joint book-running managers for the offering, with Baird acting as lead manager.

It is reported that Applied Therapeutics completed its Series A and Series B financing rounds in February 2017 and February 2019, raising $6.1 million and $25 million, respectively.

Applied Therapeutics plans to allocate these funds toward the pivotal Phase 2/3 clinical trial of AT-001 for the treatment of diabetic cardiomyopathy, as well as to support the concurrent initiation of Phase 1 clinical trials for AT-007, indicated for the treatment of adult galactosemia, and AT-003, indicated for the treatment of diabetic retinopathy. The remaining funds will be used for other research and development activities and general corporate operations.

Applied Therapeutics is a clinical-stage biopharmaceutical company founded in New York in 2016. The company focuses on molecules that have been validated to play a critical role in disease pathways but have previously failed to reach development success due to poor efficacy and tolerability. Applied Therapeutics leverages cutting-edge technologies to design optimized drug candidates and uses biomarkers to confirm biological activity.

Applied Therapeutics’ lead candidate, AT-001, is a novel aldose reductase inhibitor (ARI) characterized by extensive systemic exposure and peripheral nerve permeability, developed for the treatment of diabetic cardiomyopathy (DbCM). To date, there is no approved therapy for diabetic cardiomyopathy.

Furthermore, the company is investigating the application of AT-001 in diabetic peripheral neuropathy (DPN). DPN is a debilitating neurodegenerative disorder for which there are currently no approved treatments in the United States. Approximately 50% of the global diabetic population suffers from DPN.

Applied Therapeutics’ second lead candidate, AT-007, is a central nervous system (CNS)-penetrant aldose reductase inhibitor (ARI). The company is investigating AT-007 for the treatment of galactosemia, a condition for which no approved therapies currently exist. AT-007 is in the late stages of preclinical development and is expected to enter Phase I clinical trials in 2019.

AT-003 is indicated for the treatment of diabetic retinopathy (DR). DR is an ocular disease occurring in patients with diabetes, and current treatment options are limited to high-cost biologics administered via intravitreal injection. Applied Therapeutics plans to advance AT-003 into Phase I clinical trials in 2020.

(Compiled by Song Chenchen)