Applied Therapeutics, Inc. Announces Pricing of Public Offering of 3,000,000 Shares of Common Stock

Rhea-AI Summary

Applied Therapeutics, Inc. (NASDAQ: APLT) has priced its underwritten public offering of 3,000,000 shares at $23.00 per share, expected to generate gross proceeds of $69 million. The offering, which could increase by an additional 450,000 shares if underwriters exercise their options, will close on February 17, 2021. The funds will be utilized for advancing clinical and preclinical developments as well as general corporate purposes. Goldman Sachs, Cowen, and UBS are the joint book-running managers for this offering.

Positive

• Expected gross proceeds of $69 million to advance product candidates.
• Funding allocated for clinical and preclinical development and commercialization.

Negative

• Dilution risk for existing shareholders due to the new share offering.

NEW YORK, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Applied Therapeutics, Inc. (NASDAQ: APLT) (the “Company”), a clinical-stage biopharmaceutical company developing a pipeline of novel drug candidates against validated molecular targets in indications of high unmet medical need, today announced the pricing of its underwritten public offering of 3,000,000 shares of its common stock, par value $0.0001 per share, at a price to the public of $23.00 per share. The gross proceeds to the Company from the offering, before deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company, are expected to be $69 million. The Company has granted the underwriters a 30-day option to purchase up to 450,000 additional shares of its common stock at the price to the public, less underwriting discounts and commissions.

The Company intends to use the net proceeds from this offering, together with its existing cash, to advance clinical and preclinical development of its product candidates, prepare for commercialization and other general corporate purposes.

Goldman Sachs & Co. LLC, Cowen and UBS Investment Bank are acting as joint book-running managers for the offering. Baird is acting as lead manager for the offering. The offering is expected to close on February 17, 2021, subject to customary closing conditions.

The offering is being made only by means of a previously filed effective registration statement (including a base prospectus) and a preliminary prospectus supplement. Copies of the final prospectus supplement and the accompanying prospectus relating to the proposed offering, when available, may be obtained from: Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing Prospectus-ny@ny.email.gs.com; Cowen and Company, LLC, c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717, Attn: Prospectus Department, or by telephone at (833) 297-2926; or UBS Securities LLC, Attn: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, by telephone at (888) 827-7275 or by email at ol-prospectus-request@ubs.com. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the proposed offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Applied Therapeutics
Applied Therapeutics is a clinical-stage biopharmaceutical company developing a pipeline of novel drug candidates against validated molecular targets in indications of high unmet medical need. The Company’s lead drug candidate, AT-007, is a novel central nervous system penetrant aldose reductase inhibitor (ARI) for the treatment of Galactosemia, a rare pediatric metabolic disease. The Company initiated a pivotal Phase 1/2 clinical trial in June 2019, read out positive top-line biomarker data in adult Galactosemia patients in January 2020 and announced full data from the trial in April 2020. A pediatric Galactosemia study commenced in June 2020. The Company is also developing AT-001, a novel potent ARI that is being developed for the treatment of Diabetic Cardiomyopathy, or DbCM, a fatal fibrosis of the heart. The Company initiated a Phase 3 registrational study in DbCM in September 2019. The preclinical pipeline also includes AT-003, an ARI designed to cross through the back of the eye when dosed orally, for the treatment of diabetic retinopathy, as well as novel dual PI3k inhibitors in preclinical development for orphan oncology indications.

Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements regarding the Company’s anticipated use of the net proceeds from the offering and other statements regarding the offering. All statements contained in this press release other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “targets,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors.

All forward-looking statements speak only as of the date on which it is made. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in our annual, quarterly and other reports we file with the SEC. We undertake no duty to update these forward-looking statements, even though our situation may change in the future. Furthermore, we cannot guarantee future results, events, levels of activity, performance, projections or achievements.

Contacts

Investors:

Maeve Conneighton
(212) 600-1902 or
appliedtherapeutics@argotpartners.com

Media:

Gleb Sagitov
media@appliedtherapeutics.com

FAQ

What is the share price for APLT's recent public offering?

The share price for Applied Therapeutics' recent public offering is $23.00.

How much money is APLT expected to raise from the offering?

Applied Therapeutics expects to raise approximately $69 million from the offering.

What will the proceeds from the APLT offering be used for?

The proceeds will be used to advance clinical and preclinical development of product candidates and for general corporate purposes.

When will the APLT offering close?

The offering is expected to close on February 17, 2021.

Are there any risks associated with APLT's stock offering?

Yes, there is a risk of dilution for existing shareholders due to the issuance of new shares.