Cycle Pharmaceuticals to Acquire Applied Therapeutics

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]