Citi ups Applied Therapeutics target, opens ‘positive catalyst watch’

Citi raised the firm’s price target on Applied Therapeutics to $11 from $8 and keeps a Buy rating on the shares. The analyst also added a “90-day positive catalyst watch” on the shares into the November 28 FDA action date for govorestat in galactosemia. The firm thinks the positive read from the cancelled FDA panel meeting is merited vis a vis approval likelihood. The analyst believes “strongly” that govorestat will attain FDA approval, despite the nominally missed primary endpoint, as the totality of evidence favoring clinical benefit has been established and there are no currently available therapies for galactosemia. Citi increased its probability of success to 85% from 60%.