Cycle snaps up US-based Applied Therapeutics at bargain $15m
The Big Apple turned sour for Applied in regulatory struggles with the FDA in the States and Cycle has picked up the pieces. It has already started swallowing shares in Applied after agreeing the takeover.
Cycle, which has its HQ in The Broers Building in Cambridge, focuses on the rare disease market. This move allows the company to build an impressive therapeutic pipeline in an area that is prime for the business.
An entrepreneur close to Cycle said the Applied product looked really interesting but the company had clearly made a hash of interaction with the FDA. Cycle wouldn't make the same error, the contact said.
Applied’s lead drug candidate, govorestat, is a novel central nervous system penetrant Aldose Reductase Inhibitor for the treatment of CNS rare metabolic diseases.
Les Funtleyder, Interim Chief Executive Officer and Chief Financial Officer of Applied, commented: “We are confident that Cycle has the resources and capabilities to move govorestat forward towards the ultimate goal of bringing a life-changing treatment to the patients suffering from Classic Galactosemia, CMT-SORD and PMM2-CDG, who have always been at the centre of everything we do at Applied.”
Under the terms of the merger agreement, Cycle will commence a tender offer to acquire all of the outstanding shares of Applied common stock at $0.088 per share in cash payable at closing plus one non-transferrable contingent value right that entitles the holder to receive potential additional payments.
The takeover is expected to close in the first quarter of 2026, subject to satisfaction of the closing conditions. If the tender offer closes, then Cycle would acquire untender.
Applied also issued a Promissory Note to Cycle which is unsecured and enables Applied to receive loans aggregating up to $8.5m from Cycle to fund Applied’s working capital needs under an approved budget. Cycle’s funding obligations cease, and amounts borrowed immediately becomes repayable, if the transaction is terminated for certain reasons.
Cycle was founded in 2012 with the sole aim of delivering drug treatments and product support to the underserved rare disease community. The company focuses on rare genetic conditions in metabolic, immunology, urology, and oncology. In neurology, Cycle focuses on multiple sclerosis.
