When short sellers began raising questions about New York-based Applied Therapeutics’ treatment for a rare metabolic disorder, the company could have ignored the investors. Or tried to prove them wrong. Instead, I’ve learned, the company deployed heavy-handed legal tactics to scare them into silence.
In July 2020, Applied was worth more than $1 billion when an anonymous short seller posted an online research report that pointed out misrepresentations in the company’s presentations of data on the drug called AT-007 — making the therapy appear more effective than it really was. The report warned investors that Applied stock price was ‘wildly overvalued’ and that the company had a ‘zero chance’ of securing FDA approval based on biomarker data. Unlock this article by subscribing to STAT+ and enjoy your first 30 days free! GET STARTED STAT+ is STAT’s premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond. What’s included? Daily reporting and analysis The most comprehensive industry coverage from a powerhouse team of reporters Subscriber-only newsletters Daily newsletters to brief you on the most important industry news of the day STAT+ Conversations Weekly opportunities to engage with our reporters and leading industry experts in live video conversations Exclusive industry events Premium access to subscriber-only networking events around the country The best reporters in the industry The most trusted and well-connected newsroom in the health care industry And much more Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr. This name will appear with your comment
https://www.statnews.com/2022/01/04/applied-therapeutics-tried-to-muzzle-short-sellers-but-the-truth-still-came-out/
