TD Cowen analyst Phil Nadeau maintained a Buy rating on Apellis Pharmaceuticals (APLS – Research Report) today and set a price target of $50.00.
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Phil Nadeau has given his Buy rating due to a combination of factors surrounding Apellis Pharmaceuticals’ recent strategic moves. The company has entered into a royalty purchase agreement with Sobi, securing up to $300 million in non-dilutive financing. This agreement is seen as a prudent financial maneuver, providing Apellis with the necessary capital to support the U.S. launch of Empaveli in C3G/IC-MPGN and Syfovre in GA, which are expected to drive significant revenue growth.
Furthermore, the terms of the agreement are considered favorable, with a cap of 1.45x on the amounts paid by Sobi, which is lower than many recent similar transactions. This financial strategy is anticipated to alleviate investor concerns regarding capital needs and accelerate the launch of Empaveli, positioning it competitively against NVS’s Fabhalta. The potential market opportunity for Empaveli is significant, with expectations of substantial revenue by 2030, underscoring the long-term value proposition for shareholders.