NEW YORK, Jan. 29, 2026 (GLOBE NEWSWIRE) -- Applied Therapeutics, Inc. (Nasdaq: APLT) (the “Company” or “Applied”), a clinical-stage biopharmaceutical company dedicated to creating transformative treatments for rare diseases, today released the following letter to stockholders regarding the pending tender offer by AT2B, Inc. (“Purchaser”), an indirect wholly owned subsidiary of Cycle Group Holdings Limited (“Cycle”). January 29, 2026 Dear Applied Therapeutics Stockholders, As announced on December 11, 2025, ...

Core Viewpoint - Shares of Applied Therapeutics Inc. (APLT) have experienced a significant decline of 46.8% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1] Technical Analysis - The hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick, suggesting that the stock may have found support after a downtrend [4] - This pattern signals that bears might be losing control, and the emergence of buying interest could indicate a potential trend reversal [5] Fundamental Analysis - Rising optimism among Wall Street analysts regarding APLT's future earnings enhances the prospects for a trend reversal [2] - Over the last 30 days, the consensus EPS estimate for APLT has increased by 1.9%, indicating that analysts expect better earnings than previously predicted [8] - APLT currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10]

Company Performance - Lululemon Athletica Inc. reported quarterly earnings of $2.59 per share, exceeding the analyst estimate of $2.27 by 14.15% [2] - The company's quarterly revenue reached $2.57 billion, surpassing the Street estimate of $2.48 billion and increasing from $2.4 billion in the same period last year [2] Market Movements - cbdMD Inc. shares surged 101% to $1.26 after regaining full compliance with NYSE American listing standards [9] - Akanda Corp shares rose 42% to $1.12 following a report on potential reclassification of marijuana as a Schedule III drug [9] - Zedge Inc. shares increased by 33% to $3.24 after reporting better-than-expected quarterly financial results [9] - Applied Therapeutics Inc. shares fell 48% to $0.11 after Cycle Pharmaceuticals announced plans to acquire the company [9] - Fermi Inc. shares dropped 40% to $9.19 after First Tenant notified the company of AICA termination [9] - Tenaya Therapeutics Inc. shares decreased by 29% to $0.97 after announcing a $60 million public offering priced at $1.20 per unit [9]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the sale of Applied Therapeutics, Inc. to Cycle Group Holdings Limited for $0.088 per share in cash plus a contingent value right for potential additional payments [1] Company Summary - The sale price of Applied Therapeutics is set at $0.088 per share in cash [1] - Shareholders are encouraged to explore their legal rights and options regarding the sale [1]

Core Insights - Applied Therapeutics has entered into a definitive agreement for Cycle Group Holdings Limited to acquire the company, focusing on advancing its lead drug candidate, govorestat, for rare CNS metabolic diseases [1][3][6] Company Overview - Applied Therapeutics is a clinical-stage biopharmaceutical company dedicated to developing novel drug candidates targeting rare diseases, with its lead candidate being govorestat, an Aldose Reductase Inhibitor for CNS rare metabolic diseases [2][10] Acquisition Details - Cycle will initiate a tender offer to acquire all outstanding shares of Applied common stock at a price of $0.088 per share in cash, along with a non-transferrable contingent value right (CVR) for potential additional payments [3][4] - The CVR includes payments based on FDA approvals and sales milestones, with potential cash payments of up to $0.10 for FDA approval of new drug applications for specific indications and up to $0.20 for achieving worldwide net sales of $200 million [8] Financial Support - Applied has issued a Promissory Note to Cycle, allowing for loans up to $8.5 million to support its working capital needs, with repayment obligations triggered if the transaction is terminated [5] Board Approval - The merger agreement was unanimously approved by the Applied Board of Directors after evaluating strategic alternatives, determining it to be in the best interest of the company and its stockholders [6]

Core Insights - Applied Therapeutics Inc. (APLT) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates [1][4][11] Earnings Estimates and Stock Price Impact - The Zacks rating system is primarily driven by changes in a company's earnings estimates, which are crucial for stock price movements [2][5] - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, influencing their buying or selling decisions [5][6] Recent Performance and Projections - The Zacks Consensus Estimate for Applied Therapeutics has increased by 11.9% over the past three months, with expectations of -$0.52 earnings per share for the fiscal year ending December 2025, showing no year-over-year change [9] - The upgrade to Zacks Rank 2 places Applied Therapeutics in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10][11] Zacks Rating System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks averaging a +25% annual return since 1988 [8] - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% are rated as "Buy" [10]

Core Viewpoint - Applied Therapeutics has initiated a process to explore strategic alternatives to maximize shareholder value, which may include mergers, acquisitions, partnerships, and other strategic transactions [1][2][3] Strategic Alternatives - The Board is evaluating a broad range of opportunities to enhance shareholder value, including potential mergers, acquisitions, partnerships, joint ventures, and licensing arrangements [2] - There is no set timetable for the completion of this strategic review process, and the company will not provide further public comments unless necessary [3] Workforce Reduction - The company is reducing its workforce by approximately 46% as part of cost-containment and cash conservation measures [4] Commitment to Patients - The interim CEO emphasized the company's commitment to advancing govorestat for patients with rare diseases while maximizing shareholder value [5] Regulatory Updates - The company completed a Type C meeting with the FDA regarding govorestat for the treatment of Charcot-Marie-Tooth Sorbitol Dehydrogenase Deficiency (CMT-SORD) and plans to submit a request for an additional Type C meeting to discuss a potential Phase 3 trial design [6] - Feedback from the FDA regarding govorestat for Classic Galactosemia is being evaluated, with potential discussions for a Phase 3 trial design to follow [7] Company Overview - Applied Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel drug candidates for rare diseases, with its lead candidate being govorestat, aimed at treating CNS rare metabolic diseases [8]

Core Insights - Several small-cap biotech and therapeutics companies experienced significant gains in after-hours trading, driven by earnings updates, financial guidance, and regulatory developments [1] Company Summaries - Inotiv, Inc. (NOTV) saw a 36.61% increase in after-hours trading to $0.94, recovering from a 33.20% decline at the close, following preliminary Q4 revenue expectations of $137.5 million to $138.5 million and full-year revenue projections of $512.5 million to $513.5 million [2] - Applied Therapeutics, Inc. (APLT) rose 16.89% to $0.33 after a 30.19% gain at the close, with investors reacting positively to a narrower Q3 net loss of $19.0 million, or $0.13 per share, compared to a $68.6 million loss, or $0.48 per share, in the same quarter last year [3] - Alumis Inc. (ALMS) advanced 7.09% to $5.97, despite reporting a Q3 net loss of $110.8 million, wider than the $93.1 million loss in the prior year, with $2.1 million in collaboration income potentially boosting investor confidence [4] - TELA Bio, Inc. (TELA) increased 7.89% to $1.23 after a 14.08% gain at the close, reporting a reduced Q3 net loss of $8.6 million compared to $10.4 million a year earlier, with revenue growth of 9% to $20.7 million and revised 2025 guidance projecting at least 16% revenue growth over 2024 [5] - Corcept Therapeutics Inc. (CORT) gained 4.90% to $78.80, reflecting continued investor interest despite no specific news released [6] - BioRestorative Therapies, Inc. (BRTX) jumped 8.06% to $1.34, rebounding from a 6.77% decline at the close, following the announcement of a Type B meeting with the FDA to discuss a potential accelerated Biologics License Application pathway for its BRTX-100 program [7]

Core Insights - The after-hours trading session on November 14, 2025, saw significant movements in biotech and therapeutics stocks due to various corporate updates and financial results [1] Company Summaries - Repare Therapeutics Inc. (RPTX) experienced a 30.32% increase, closing at $2.15, following the announcement of a definitive agreement for acquisition by XenoTherapeutics, with shareholders set to receive $1.82 per share plus a contingent value right. The company reported cash and cash equivalents of $112.6 million as of September 30, 2025, up from $109.5 million at the end of June [2] - Senti Biosciences, Inc. (SNTI) rose 7.45% to $1.73 after reporting a net loss of $18.1 million, or $0.69 per share, for Q3 2025. Cash and cash equivalents decreased to $12.2 million from $48.3 million at year-end 2024 [3] - Applied Therapeutics, Inc. (APLT) advanced 8.15% to $0.24, reporting a net loss of $19.0 million, or $0.13 per share, for Q3 2025, an improvement from a net loss of $68.6 million, or $0.48 per share, in the same period of 2024. Cash and cash equivalents totaled $11.9 million, down from $79.4 million at the end of 2024 [4] - RenovoRx, Inc. (RNXT) climbed 6.28% to $0.80, reporting revenues of approximately $266,000 for Q3 2025, with a net loss of $2.9 million compared to $2.5 million in the same period of 2024 [5] - Nuvalent, Inc. (NUVL) gained 9.33%, closing at $105.50, and announced plans for a webcast to discuss pivotal data for its investigational ALK-selective inhibitor in patients with advanced ALK-positive non-small cell lung cancer [6]

Core Viewpoint - Applied Therapeutics, Inc. is experiencing a significant decline in stock price while providing updates on its regulatory strategy for Govorestat related to Charcot-Marie-Tooth Sorbitol Dehydrogenase Deficiency (CMT-SORD) following a Type C meeting with the FDA [1][4]. Regulatory Strategy - The company received official meeting minutes from the FDA regarding Govorestat for CMT-SORD, which is a genetic defect that leads to toxic sorbitol buildup in cells, damaging peripheral nerves [2]. - Key open issues discussed in the meeting included the need for conclusive evidence on the pathophysiology of CMT-SORD, the use of sorbitol levels as a surrogate endpoint, selection of a primary endpoint for a potential Phase 3 trial, and carcinogenicity testing [3]. - The company plans to request an additional Type C meeting with the FDA to further discuss the design of a potential Phase 3 trial [3]. Financial Position - As of September 30, 2025, the company reported cash and cash equivalents totaling $11.9 million [4]. - The stock price of APLT has decreased by 58.8%, trading at $0.37 during the latest check [4].