SCHEDULE: Propel Bio Group Amends Applied Therapeutics Stake

Propel Bio Management, Leen Kawas, and Richard Kayne, along with Propel Bio Partners, have filed an amendment to their Schedule 13G, reporting a 4.17% beneficial ownership in Applied Therapeutics, Inc.

Summary

• Propel Bio Management, LLC, Leen Kawas, Richard Kayne, and Propel Bio Partners LLC collectively beneficially own 6,015,394 shares of Applied Therapeutics, Inc. common stock.
• This represents 4.17% of the company's common stock outstanding.
• The calculation is based on 144,300,674 common shares outstanding as of November 12, 2025, as disclosed by the Issuer on its Form 10-Q filed on November 13, 2025.
• The reporting persons have sole voting and dispositive power over these shares, with no shared powers.
• The Richard Kayne and Suzanne Kayne Living Trust dtd 01/14/1999 reports 0% beneficial ownership.
• The securities were not acquired for the purpose of changing or influencing control of the issuer, except for activities solely in connection with a nomination under Rule 240.14a-11.

Sentiment

Score: 4

Explanation: The filing reports a beneficial ownership stake of 4.17%, which is below the 5% threshold for initial Schedule 13G filings. As an Amendment No. 2, this implies a reduction in stake from a previous filing where the ownership was likely above 5%. A reduction in a significant investor's position is generally a negative signal, indicating potentially reduced confidence or a strategic shift by the investor.

Positives

• The filing indicates continued, albeit reduced, investment by Propel Bio Management, Leen Kawas, and Richard Kayne in Applied Therapeutics, Inc.
• The reporting group explicitly states the shares were not acquired for the purpose of changing or influencing control, which can signal stability regarding management's current strategic direction.

Negatives

• A decrease in beneficial ownership below the 5% threshold (implied by Amendment No. 2 and the current 4.17% stake) could be interpreted as a reduction in conviction by the reporting persons.
• The reduction in stake by a significant investor group may signal a re-evaluation of the investment's prospects or a reallocation of capital away from Applied Therapeutics.

Risks

• The reduction in beneficial ownership by a significant investor group could signal potential concerns about the company's future performance or strategy.
• While the filing states no intent to influence control, a substantial stake, even below 5%, could still lead to investor activism or pressure on management if performance falters.

Future Outlook

The filing is a disclosure of beneficial ownership and does not contain forward-looking statements or guidance regarding Applied Therapeutics, Inc.'s future performance or strategic direction.

Management Comments

• The reporting persons certified that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer, other than activities solely in connection with a nomination under Rule 240.14a-11.

Industry Context

This filing reflects an institutional investor's adjusted stake in a biotechnology company. Changes in significant ownership percentages can be closely watched in the biotech sector, where investor confidence often correlates with perceived progress in drug development and regulatory milestones. A reduction in stake, even if minor, might prompt other investors to re-evaluate their positions.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: May interpret the reduction in stake by a significant investor as a negative signal, potentially impacting stock price.
• Management: Could face questions regarding the reasons for the investor group's reduced position.

Next Steps

• The filing does not specify any future actions or milestones for Applied Therapeutics, Inc. or the reporting persons beyond the regulatory disclosure itself.

Key Dates

Recommendation

While the reduction in stake by Propel Bio Management and associated entities to 4.17% is a negative signal, it's not a complete divestment. The filing itself is a routine regulatory update and does not provide new fundamental information about Applied Therapeutics' operations or prospects. Investors should monitor future filings and company performance for more definitive signals, but for now, a 'hold' position is warranted given the lack of explicit operational news.

Keywords

Applied Therapeutics, Propel Bio Management, Leen Kawas, Richard Kayne, Schedule 13G, Beneficial Ownership, Common Stock, Biotechnology Investment, Institutional Ownership