Applied Therapeutics target lowered to $8, ‘catalyst watch’ removed at Citi

Citi analyst Yigal Nochomovitz lowered the firm’s price target on Applied Therapeutics (APLT) to $8 from $13 and keeps a Buy rating on the shares, calling the Complete Response Letter received from the FDA for govorestat in galactosemia a “head-scratcher.” It appears the FDA could not get past the missed primary endpoint given full approval was at stake, says the analyst, who is now lowering the firm’s view on the odds of success in galactosemia to 50% given the CRL news. However, the firm argues that the SORD program alone, which is independent and being reviewed by Neurology I under accelerated approval, is worth $6 per share, so a Buy rating is “still warranted.” The analyst also removed the “90-day positive catalyst watch” that the firm previously had placed on the shares.