Apellis Pharmaceuticals: Buy Rating Reaffirmed Amid Growth Potential and Market Leadership in GA

Phil Nadeau, an analyst from TD Cowen, maintained the Buy rating on Apellis Pharmaceuticals (APLS – Research Report). The associated price target was lowered to $50.00.

Phil Nadeau has given his Buy rating due to a combination of factors that highlight the potential of Apellis Pharmaceuticals despite recent challenges. The company’s Q1 sales of Syfovre fell short of expectations primarily due to inventory drawdowns and an increase in free samples, yet the overall demand for the product continues to grow, as evidenced by a 4% increase in total injections. Syfovre maintains its position as the market leader with over 60% share in geographic atrophy (GA), and its share of new patient starts is on the rise.
Moreover, Apellis has a promising pipeline with Peg’s C3G/ICMPGN sNDA under review, and the company is financially stable with $358 million in cash, which is expected to support operations until profitability is achieved. Despite the reduced price target from $60 to $50, the stock is considered undervalued given the large potential market for GA treatments and the company’s current enterprise value. These factors contribute to the Buy rating, reflecting confidence in Apellis’s long-term growth prospects.