APM Authentication issue

Hi. I am working on a setup where myapp1.com is hosted on server A and myapp2 is a VIP setup with APM/Kerberos Authentication. myapp1.com is using a AD service account but the application itself allows users to create Non-AD accounts and login with those. myapp2 is a SP application and is working fine with end-to-end Kerberos auth. When a user logs in to myapp1.com and trying to access a resouce linked to myapp2.com, nothing really happens. There is a 2 line entry in the APM logs saying that a connection is starting . Reviewing the packet capture shows that the APM is sending a 302 redirect to /mypolicy and is expecting a return from myapp2.com which is not happenning.

Looking for ideas on how to solve this. Thanks in advance!