Applied Therapeutics downgraded to Sector Perform from Outperform at RBC

RBC Capital analyst Brian Abrahams downgraded Applied Therapeutics (APLT) to Sector Perform from Outperform with a price target of $4, down from $12. The complete response letter for govorestat in galactosemia is disappointing and “creates significant uncertainties” around a future path forward for the drug in that indication, the analyst tells investors in a research note. The firm still sees “meaningful residual value” from sorbitol dehydrogenase deficiency where a new drug application submission is expected in Q1. However, there remains uncertainties as to whether Applied can assemble a convincing enough data package, and this will take time to play out, says RBC. It sees the shares trading in-line from here in the near-term.