APLT Stock Forecast & Price Target

Applied Therapeutics Inc. has a promising outlook due to its developments in addressing rare metabolic diseases through its pipeline, particularly with Govorestat, which has demonstrated clear improvements on biomarkers for both galactosemia and SORD Deficiency. The company's focus on rare disease indications may provide regulatory advantages and allow for quicker market adoption with a smaller salesforce, enhancing its commercial potential. Furthermore, the lack of major safety concerns in its clinical trials adds to investor confidence, supporting expectations of significant long-term revenue opportunities exceeding $500 million in the U.S. market.

Applied Therapeutics Inc faces significant financial challenges, with research and development (R&D) expenses of $7.8 million falling notably short of the projected $10.8 million, indicating reduced spending in key clinical trials. The company's general and administrative (SG&A) expenses were also lower than expected at $17.7 million, reflecting cost-cutting measures that could signal financial distress. Additionally, regulatory risks loom large, particularly concerning deficiencies in the galactosemia clinical package and the uncertain viability of its drug candidates, which could adversely impact the stock's future performance.