SCHEDULE 13G/A: Perceptive Advisors Significantly Reduces Stake in Applied Therapeutics to 2.4%

Sentiment:

Beneficial Ownership Disclosure 14 February 2025 9:15 PM

📋All filings for Applied Therapeutics, INC

Perceptive Advisors LLC and its affiliates reported a beneficial ownership of 2.4% in Applied Therapeutics, Inc. as of December 31, 2024, indicating a substantial reduction from previous holdings.

Worse than expectedThe beneficial ownership percentage of Perceptive Advisors and its affiliates in Applied Therapeutics, Inc. has decreased to 2.4%.This reduction from a previous holding (implied by the Schedule 13G amendment, which is typically filed when ownership crosses the 5% threshold, either up or down) suggests a divestment or reduced conviction by a significant institutional investor.

Summary

Perceptive Advisors LLC, Joseph Edelman, and Perceptive Life Sciences Master Fund, Ltd. (collectively, the "Reporting Persons") filed an Amendment No. 3 to Schedule 13G regarding their beneficial ownership in Applied Therapeutics, Inc.
As of December 31, 2024, the Reporting Persons beneficially owned an aggregate of 2,860,000 shares of Applied Therapeutics, Inc. Common Stock.
This ownership represents 2.4% of the Issuer's outstanding Common Stock.
The ownership percentage is calculated based on 116,356,474 shares outstanding as reported by Applied Therapeutics in its Form 10-Q filed on November 7, 2024, and includes the assumed exercise of 2,000,000 Pre-Funded Warrants.
Perceptive Life Sciences Master Fund, Ltd. directly holds 860,000 shares of Common Stock and Pre-Funded Warrants immediately exercisable for 2,000,000 shares of Common Stock at an exercise price of $0.001 per share.
The Pre-Funded Warrants are subject to a Beneficial Ownership Limitation, preventing exercise if it would result in ownership exceeding 9.99% of the outstanding shares; as of the filing date, all warrants could be exercised.
Perceptive Advisors serves as the investment manager to the Master Fund, and Joseph Edelman is the managing member of Perceptive Advisors; both are deemed to beneficially own the shares held by the Master Fund.

Sentiment

Score: 3

Explanation: The document indicates a significant reduction in a prominent institutional investor's stake, which is generally a negative signal for the company's stock, suggesting decreased confidence or portfolio reallocation by the investor.

Negatives

A prominent institutional investor, Perceptive Advisors, has significantly reduced its beneficial ownership in Applied Therapeutics, Inc. to 2.4%, implying a decreased conviction or a strategic portfolio reallocation.

Future Outlook

The document is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance from the issuer or the reporting entity regarding the issuer's future performance.

Industry Context

This filing indicates a portfolio adjustment by a prominent life sciences investment firm, Perceptive Advisors, regarding its stake in Applied Therapeutics, Inc. While the filing itself doesn't provide industry-specific insights, a reduction in stake by a specialized investor could signal a re-evaluation of the company's prospects within the competitive biotechnology or pharmaceutical sector, or a broader shift in investment strategy within the life sciences industry.

Stakeholder Impact

Shareholders: Existing shareholders may view the reduction in stake by a prominent institutional investor as a negative signal, potentially leading to downward pressure on the stock price.

Key Dates

Date	Description
2024-11-07	Date Applied Therapeutics, Inc. filed its Quarterly Report on Form 10-Q, reporting 116,356,474 shares of Common Stock outstanding.
2024-12-31	Date of event which requires filing of this statement, reflecting the beneficial ownership percentage.
2025-02-14	Date the Schedule 13G Amendment No. 3 was signed and filed.

Recommendation

sell

Keywords

Applied Therapeutics Inc., Perceptive Advisors LLC, Joseph Edelman, Perceptive Life Sciences Master Fund, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, SEC Filing, Biotechnology, Pharmaceuticals

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