On July 1, 2021, an anonymous author posted a short report online accusing Applied Therapeutics of taking shortcuts in the clinical development of its lead drug, AT-007 and also of presenting erroneous data to make the drug appear more effective.
Two days later, Applied Therapeutics publicly denounced the anonymous author and short report, suggesting its purpose was to manipulate the company’s stock price and that the author should face prosecution.
However, the following week on July 9, 2021, Applied Therapeutics posted an altered investor slide deck to its website with changes to graphs that the Company had accused the anonymous author of fabricating. The update was not publicized.
On January 3, 2022, before the market opened, Applied Therapeutics announced its decision to hold on submitting the new drug application (NDS) for AT-007 subject to further discussions with the U.S. Food and Drug Administration (FDA) after learning that clinical outcome data would be needed for approval. A January 3 article published online by STAT News titled, “Applied Therapeutics amends investor deck, bolstering accusations made by anonymous critic” suggests that the Company quietly amending its investor slide deck after aggressively denouncing the short report only bolsters the accusations made by the anonymous author. The article also noted that Applied Therapeutics CEO, Shoshana Shendelman sold $1.4 million in company stock days before the amended slide deck was published on July 9, 2021.
On this news shares of Applied Therapeutics stock dropped over 25% in premarket trading on January 3, 2022.