Applied Therapeutics Takes Action Against Fraudulent “Short Report”

Rhea-AI Summary

Applied Therapeutics has responded to a fraudulent short report posted on July 1, 2020, which contains manipulated data intended to mislead investors and manipulate its stock price. The company is collaborating with law enforcement and has engaged legal counsel to address this criminal activity. Despite these challenges, Applied Therapeutics reaffirms its commitment to delivering innovative drug candidates, highlighting its focus on high unmet medical needs, including treatments for Galactosemia and Diabetic Cardiomyopathy.

Positive

• The company is proactively addressing the fraudulent report by working with law enforcement.
• Applied Therapeutics is committed to its innovative drug development pipeline, including AT-007 for Galactosemia and AT-001 for Diabetic Cardiomyopathy.

Negative

• The fraudulent report could negatively impact investor confidence and stock price.
• The company faces challenges from malicious stock manipulation attempts, potentially affecting its market position.

On July 1, 2020, a fraudulent “short report” was posted.

The fraudulent report includes manipulated company graphs and figures, fraudulent misrepresentation of data, and factual misstatements.

Applied Therapeutics will work with law enforcement and regulators to ensure this criminal stock manipulation is prosecuted to the fullest extent of the law.

NEW YORK, July 06, 2020 (GLOBE NEWSWIRE) -- Applied Therapeutics, Inc. (Nasdaq: APLT), a clinical-stage biopharmaceutical company developing a pipeline of novel drug candidates against validated molecular targets in indications of high unmet medical need, announced that it has uncovered fraudulent attempts to manipulate the Applied Therapeutics stock.

On July 1, 2020, a fraudulent “short report,” was posted on an online platform from an untraceable and anonymous source. Immediately following, individuals believed to have taken short positions in Applied Therapeutics’ stock shared the report on social media. The report includes fabricated graphs and fraudulent data which it falsely attributes to Applied Therapeutics for the apparent purpose of manipulating the company’s stock price. 

Applied Therapeutics will work with law enforcement and regulators to ensure that this criminal activity is prosecuted. The company has hired Reed Brodsky of Gibson, Dunn & Crutcher, a former federal prosecutor at the United States Attorney’s Office for the Southern District of New York, to assist in this matter. 

Applied Therapeutics stands behind its data and high-quality, innovative development programs, and reinforces its commitment to value creation for investors through technology advancement.

About Applied Therapeutics, Inc.
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. 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” that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, included in this press release regarding strategy, future operations, prospects, plans and objectives of management, including words such as “may,” “will,” “expect,” “anticipate,” “plan,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are forward-looking statements. These include, without limitation, statements regarding (i) our plan to move quickly towards regulatory filing following our pivotal Phase 2 ACTION-Galactosemia study, while preparing for Galactosemia commercial launch and growing our organization, (ii) the design, scope and results of our clinical trials, (iii) the timing of the initiation and completion of our clinical trials, (iv) the likelihood that data from our clinical trials will support future development of our product candidates, and (v) the likelihood of obtaining regulatory approval of our product candidates and qualifying for any special designations, such as orphan drug designation. Forward-looking statements in this release involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, and we, therefore cannot assure you that our plans, intentions, expectations or strategies will be attained or achieved. Such risks and uncertainties include, without limitation, (i) our plans to develop and commercialize our product candidates, (ii) the initiation, timing, progress and results of our current and future preclinical studies and clinical trials and our research and development programs, (iii) our ability to take advantage of expedited regulatory pathways for any of our product candidates, (iv) our estimates regarding expenses, future revenue, capital requirements and needs for additional financing, (v) our ability to successfully acquire or license additional product candidates on reasonable terms, (vi) our ability to maintain and establish collaborations or obtain additional funding, (vii) our ability to obtain regulatory approval of our current and future product candidates, (viii) our expectations regarding the potential market size and the rate and degree of market acceptance of such product candidates, (ix) our ability to fund our working capital requirements and expectations regarding the sufficiency of our capital resources, (x) the implementation of our business model and strategic plans for our business and product candidates, (xi) our intellectual property position and the duration of our patent rights, (xii) developments or disputes concerning our intellectual property or other proprietary rights, (xiii) our expectations regarding government and third-party payor coverage and reimbursement, (xiv) our ability to compete in the markets we serve, (xv) the impact of government laws and regulations and liabilities thereunder, (xvi) developments relating to our competitors and our industry, (xvii) the impact of the COVID-19 pandemic on the timing and progress of our ongoing clinical trials and our business in general and (xviii) other factors that may impact our financial results. In light of the significant uncertainties in these forward-looking statements, you should not rely upon forward-looking statements as predictions of future events. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur at all. Factors that may cause actual results to differ from those expressed or implied in the forward-looking statements in this press release are discussed in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” contained therein. Except as otherwise required by law, we disclaim any intention or obligation to update or revise any forward-looking statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise.

Contacts

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

Media:
Lex Suvanto
(646) 775-8337
Lex.Suvanto@edelman.com

Laurie Hays
(917) 951-0472
Laurie.Hays@edelman.com

 

FAQ

What is the recent fraudulent report about Applied Therapeutics (APLT)?

On July 1, 2020, a fraudulent short report was posted, containing manipulated graphs and fake data to mislead investors.

How is Applied Therapeutics (APLT) responding to the fraudulent report?

Applied Therapeutics is working with law enforcement and has hired legal counsel to prosecute those responsible.

What are the implications of the fraudulent report for Applied Therapeutics (APLT)?

The fraudulent report could undermine investor confidence and potentially affect Applied Therapeutics' stock price.

What are the key drug candidates being developed by Applied Therapeutics (APLT)?

The company's lead candidates include AT-007 for Galactosemia and AT-001 for Diabetic Cardiomyopathy.