Analyst Derek Archila of Wells Fargo maintained a Hold rating on Apellis Pharmaceuticals, reducing the price target to $29.00.
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Derek Archila has given his Hold rating due to a combination of factors surrounding Apellis Pharmaceuticals. The recent FDA approval of Empaveli for treating C3G and IC-MPGN is a positive development, expected to boost the stock by at least 10%. However, the approval did not cover the entire population from the pivotal trial, specifically excluding post-transplant IC-MPGN, which might limit the immediate market potential.
Despite the broader and differentiated label of Empaveli compared to its competitor Fabhalta, and the optimistic survey results indicating a strong initial demand, Archila remains cautious. The revenue estimates for the launch period are higher than consensus, yet the peak revenue projections are lower, suggesting potential challenges in achieving long-term market penetration. Additionally, while recent strategic moves like the royalty monetization deal with SOBI provide financial stability, the overall outlook remains uncertain, justifying the Hold rating.
In another report released on July 18, RBC Capital also maintained a Hold rating on the stock with a $17.00 price target.