Applied Therapeutics Inc. (APLT), a clinical-stage biopharmaceutical company focused on rare metabolic diseases, has agreed to be acquired by privately held Cycle Group Holdings Ltd.
The lead candidate of Applied Therapeutics is Govorestat, a central nervous system penetrant aldose reductase inhibitor being developed for the treatment of CNS rare metabolic diseases, including Classic Galactosemia, Charcot-Marie-Tooth Sorbitol Dehydrogenase Deficiency (CMT-SORD) and phosphomannomutase 2 congenital disorder of glycosylation (PMM2-CDG).
Cycle will commence a tender offer to acquire all outstanding shares of Applied common stock for $0.088 per share in cash, payable at closing.
As part of the transaction, Applied shareholders will receive a non-transferable contingent value right (CVR), tied to future regulatory and commercial milestones.
The CVR provides up to $0.10 in cash upon FDA approval of Govorestat for galactosemia, another $0.10 upon FDA approval in CMT-SORD indication, and up to $0.20 upon the first achievement of worldwide net sales of $200 million in any fourth-quarter fiscal period. In addition, CVR holders will be entitled to a pro rata share of Applied's closing cash in excess of $500,000, capped at $1.5 million.
Applied has also issued an $8.5 million unsecured promissory note to Cycle to fund working capital needs until the transaction closes. Without this funding, Applied indicated it would be unable to continue operations beyond a limited number of days.
The acquisition was unanimously approved by the Applied's Board of Directors following a strategic review of alternatives. The deal is expected to close in the first quarter of 2026, subject to customary conditions, including the tender of a majority of Applied's outstanding shares.
Cycle Pharmaceuticals, founded in 2012 and headquartered in Cambridge, UK, focuses on treatments of rare genetic conditions across metabolic, immunology, urology, oncology, and neurology. The acquisition of Applied Therapeutics strengthens Cycle's rare disease portfolio and positions Govorestat for potential regulatory and commercial milestones.
APLT has traded in a range of $0.20 to $1.50. The stock closed yesterday's trading at $0.21, down 1.41%, and declined further in overnight trading to $0.14, down 34.53%.
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