Analyst Douglas Tsao from H.C. Wainwright maintained a Buy rating on Apellis Pharmaceuticals and keeping the price target at $57.00.
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Douglas Tsao has given his Buy rating due to a combination of factors, primarily centered around the promising data for Empaveli. The recent one-year data highlights Empaveli’s effectiveness in significantly reducing proteinuria levels in patients with C3 glomerulopathy and primary immune complex membranoproliferative glomerulonephritis. This reduction was consistent across different patient groups, providing physicians with the flexibility to prescribe Empaveli without restrictions. Additionally, a notable portion of patients maintained complete remission of proteinuria over a year, further supporting its potential as a standard treatment.
Furthermore, indirect treatment comparisons suggest that Empaveli outperforms Fabhalta in lowering proteinuria levels and achieving renal endpoints. Despite Fabhalta’s oral administration convenience, Empaveli’s superior data and broad label, which includes younger patients, position it as a more favorable option for clinicians. The valuation of Apellis is based on a risk-adjusted revenue estimate for Empaveli and other products, with the potential for additional upside from earlier-stage assets. However, Tsao acknowledges risks such as regulatory approvals and the emergence of superior technologies in the field.
In another report released on October 15, Wells Fargo also upgraded the stock to a Buy with a $32.00 price target.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APLS in relation to earlier this year.