Why Applied Therapeutics has a credibility problem

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Applied Therapeutics’ CEO Shoshana Shendelman has a debilitating credibility problem: She repeatedly misled investors prior to the Food and Drug Administration’s rejection of the company’s rare-disease drug.

Throughout 2024, Shendelman assured investors that Applied’s drug, called govorestat, was sailing through the FDA review process without major hitches. We now know she was lying by omission. The company was aware of significant problems with the govorestat application identified by the FDA, but Shendelman said nothing publicly.

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