Apellis Pharmaceuticals Holds Steady Amid Market Challenges and Competitive Pressures

Wells Fargo analyst Derek Archila maintained a Hold rating on Apellis Pharmaceuticals (APLS – Research Report) today and set a price target of $57.00.

Derek Archila has given his Hold rating due to a combination of factors affecting Apellis Pharmaceuticals. The company’s product Syfovre surpassed expected revenue, yet the future outlook suggests increasing competition that may hinder such revenue beats going forward. Despite the positive uptick in paid vials and new site growth, a decline in market share has been observed, with a drop to 85% from 90% in the previous quarter. Additionally, operational expenditures were slightly higher than anticipated, which, although management is projecting lower spending in 2024, adds to the cautious stance.
Moreover, the introduction of Astellas’ Izervay with its recent J-code and potential approval for long-term dosing could dilute Syfovre’s market presence, prompting the analyst to remain conservative with growth estimates despite acknowledging the market growth potential. The analyst also notes the pressure on Empaveli sales from Novartis’ Iptacopan, predicting flat growth for the medium term. While there is an upcoming clinical readout for Empaveli, it is not expected to significantly impact the stock. Concerns over the company’s balance sheet and a low probability of success on a positive CHMP opinion further contribute to the Hold rating, with a revised price target of $57 reflecting these apprehensions.

Archila covers the Healthcare sector, focusing on stocks such as Argenx Se, Rhythm Pharmaceuticals, and Nurix Therapeutics. According to TipRanks, Archila has an average return of 6.7% and a 43.58% success rate on recommended stocks.

In another report released on April 30, Mizuho Securities also assigned a Hold rating to the stock with a $52.00 price target.

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Apellis Pharmaceuticals (APLS) Company Description:

Apellis Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company, which develops novel therapeutic compounds. It develops complement immunotherapies for the treatment of complement-dependent autoimmune and inflammatory diseases through APL-2 product. The company was founded by Candace Rose Depp, Pascal Deschatelets, Cedric Francois, Alec Machiels on September 25, 2009 and is headquartered in Waltham, MA.