SCHEDULE 13G/A: Morgan Stanley Discloses Significant 7.6% Stake in Applied Therapeutics, Inc.

Morgan Stanley and its subsidiary, Morgan Stanley Capital Services LLC, have disclosed a beneficial ownership of 7.6% of Applied Therapeutics, Inc.'s common stock as of December 31, 2024.

Summary

• Morgan Stanley and its wholly-owned subsidiary, Morgan Stanley Capital Services LLC, have filed an amended Schedule 13G, disclosing their beneficial ownership in Applied Therapeutics, Inc.
• As of December 31, 2024, Morgan Stanley beneficially owned an aggregate of 8,815,526 shares of Applied Therapeutics, Inc. common stock, representing 7.6% of the class.
• Morgan Stanley Capital Services LLC beneficially owned 8,469,117 shares, representing 7.3% of the class, with shared voting and dispositive power over these shares.
• The filing states that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Applied Therapeutics, Inc.

Sentiment

Score: 7

Explanation: The filing indicates a significant beneficial ownership stake by a major financial institution, which can be viewed positively as a vote of confidence, though it does not provide operational or financial performance details of the issuer.

Positives

• A major financial institution like Morgan Stanley taking a significant beneficial ownership stake (7.6%) can be interpreted as a vote of confidence in Applied Therapeutics, Inc.

Risks

• The document includes a standard legal disclaimer that intentional misstatements or omissions of fact constitute federal criminal violations (see 18 U.S.C. 1001).

Future Outlook

This Schedule 13G filing does not contain any forward-looking statements or guidance regarding Applied Therapeutics, Inc.'s future performance or outlook.

Management Comments

• Christopher O'Hara, Authorized Signatory for Morgan Stanley and Morgan Stanley Capital Services LLC, certified that the information set forth in the statement is true, complete, and correct.

Industry Context

The disclosure of a significant stake by a major financial institution like Morgan Stanley in a biotechnology company such as Applied Therapeutics, Inc. highlights continued institutional interest in the pharmaceutical and biotech sectors, often driven by potential drug development milestones or market opportunities.

Related Party Transactions

• Morgan Stanley Capital Services LLC, which holds a significant portion of the reported shares, is a wholly-owned subsidiary of Morgan Stanley, the parent reporting company.

Stakeholder Impact

• Shareholders of Applied Therapeutics, Inc. may view the significant institutional investment by Morgan Stanley as a positive signal, potentially increasing investor confidence and market stability for the stock.

Next Steps

• Morgan Stanley and Morgan Stanley Capital Services LLC will file future amendments to this Schedule 13G if their beneficial ownership percentage changes significantly (e.g., by more than 1%).

Key Dates

Keywords

Applied Therapeutics, Morgan Stanley, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, ATXI