Applied Therapeutics Inc.

Applied Therapeutics, Inc. (NASDAQ: APLT) is a clinical-stage biopharmaceutical firm with a strong emphasis on creating a portfolio of product candidates aimed at well-established molecular targets in areas of medicine where significant unmet needs exist. The primary molecular target of the company is aldose reductase (AR), an enzyme responsible for converting glucose into sorbitol when exposed to oxidative stress conditions. The company's product lineup comprises AT-007, AT-001, and AT-003.

Recent Financial and Business Updates:

• Second Quarter Income Statement Review:
• Reported net loss of USD29.6 million, compared to a net loss of USD25.9 million in Q2 2022.
• The loss per basic and diluted common share was USD0.37, as against USD0.96 per basic and diluted common share in Q2 2022.
• The interest income was USD408,000 in Q2 2023.
• General and administrative costs for the three-month period ending on June 30, 2023, amounted to USD5.3 million, in contrast to the USD6.1 million incurred for the same period in 2022.
• The decrease in these costs of approximately USD0.8 million can be attributed mainly to several factors:
  • An increase in legal and professional fees of USD0.2 million due to higher external legal expenses.
  • A reduction in commercial expenditure of USD13,000 due to decreased spending on commercial operations.
  • A USD0.4 million decline in personnel costs linked to a decrease in the number of employees.
  • A USD0.4 million reduction in stock-based compensation due to forfeited options and a decrease in headcount.
  • A USD0.3 million decrease in insurance expenses due to lower insurance costs
  • A USD30,000 reduction in other expenses related to decreased office-related costs.
• Balance Sheet Review:
  • Total assets as of June 30, 2023, amounted to USD43.64 million.
  • Total liabilities were USD47.98 million as of June 30, 2023.
  • Total liabilities and stockholders’ equity amounted to USD43.64 million as of June 30, 2023.
  • As of June 30, 2023, the cash and cash equivalents, and short-term investments amounted to USD35.6 million, marking an increase from the USD30.6 million reported on December 31, 2022.
• Company Update:
  • The company has confirmed the successful conclusion of a recent pre-New Drug Application (NDA) meeting with the Food and Drug Administration (FDA) regarding their govorestat (AT-007) Galactosemia program.
  • Following productive discussions with the FDA, the company is confident in their alignment with the FDA's requirements and intends to submit an NDA for govorestat for the treatment of Galactosemia in the upcoming fourth quarter of this year.
  • Should govorestat receive approval, it will address a significant gap in meeting the needs of the Galactosemia community. Galactosemia is a rare genetic metabolic disorder characterized by the inability to metabolize the basic sugar galactose.
  • The company anticipates submitting the NDA to the FDA during the fourth quarter of this year.

Technical Observation (on the daily chart)

The Relative Strength Index (RSI) over a 14-day period stands at 69.60, expected to take support from 70 levels, moving further upside. The stock price broke the resistance levels provided by both the 21-Day SMA and the 50-day SMA, reaching its highest in over a year’s time. Given the current price momentum, APLT may rise further, reaching next key resistance levels around USD 3.10-USD 3.30. The volume traded also showed a drastic increase in the month of September. Current volume remains higher than average at over 2.3 million.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Applied Therapeutics Inc. (NASDAQ: APLT) at its current price of USD2.46 on September 21, 2023, at 06:45 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is September 21, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services. Please note past performance is neither an indicator nor a guarantee of future performance.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this report or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website including entities covered in this Report.