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Apellis Pharmaceuticals Inc (APLS)
NASDAQ:APLS
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Apellis Pharmaceuticals
(NASDAQ:APLS)
50Neutral
Positive Factors
Market Potential
Empaveli is considered a much better C3G drug than Fabhalta, with significant reductions in proteinurea indicating a potential for lower relative risk of kidney failure.
Revenue Growth
Syfovre is battle tested in the marketplace and generated over $600M revenue, establishing a reasonable base business for APLS.
Negative Factors
Funding Challenges
The lack of funding for the co-pay assistance program is a real drag on the company's performance, particularly affecting Medicare patients.
Market Competition
Stock has traded poorly due to continuous headwinds for lead drug Syfovre in geographic atrophy, including safety label updates and competitor launches.
Revenue Impact
Medicare reverifications, weather, inventory destocking, and a funding gap at copay assistance organizations were identified as headwinds affecting Syfovre revenue.
Apellis Pharmaceuticals (APLS) vs. S&P 500 (SPY)
Market Cap
$2.56B
Dividend YieldN/A
Average Volume (3M)2.67M
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth97.02%
EPS Growth64.32%
CountryUS
Employees705
SectorHealthcare
Sector Strength56
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.60
Shares Outstanding125,682,260
10 Day Avg. Volume2,480,679
30 Day Avg. Volume2,669,193
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.58
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.81
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$39.83Price Target Upside95.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
Apellis Pharmaceuticals Business Overview & Revenue Model
Company DescriptionApellis Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutic compounds through the inhibition of the complement system for autoimmune and inflammatory diseases. The company's lead product candidate is pegcetacoplan that is in Phase III clinical trials for the treatment of geographic atrophy (GA) in age-related macular degeneration and paroxysmal nocturnal hemoglobinuria (PNH) diseases. It also develops EMPAVELI (systemic pegcetacoplan) for the treatment of cold agglutinin disease (CAD), and hematopoietic stem cell transplantation-associated thrombotic microangiopathy (HSCT-TMA) in hematology; C3 glomerulopathy (C3G), and immune complex membranoproliferative glomerulonephritis (IC-MPGN) in nephrology; and amyotrophic lateral sclerosis (ALS) in neurology. In addition, the company develops APL-2006, a bispecific C3 and VEGF inhibitor for treating complement-mediated disorders; APL-1030, a C3 inhibitor for the treatment of multiple neurodegenerative diseases; and the combination of EMPAVELI and a small interfering RNA, or siRNA for reducing the production of C3 proteins by the liver. It has a collaboration and license agreement with Swedish Orphan Biovitrum AB (publ) to co-develop pegcetacoplan; and a research collaboration with Beam Therapeutics Inc. focused on the use of Beam's base editing technology to discover new treatments for complement-driven diseases. Apellis Pharmaceuticals, Inc. was incorporated in 2009 and is based in Waltham, Massachusetts.
How the Company Makes MoneyApellis Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products. The company's flagship product, EMPAVELI (pegcetacoplan), is a targeted C3 therapy used for the treatment of paroxysmal nocturnal hemoglobinuria (PNH), a rare blood disorder. Revenue is derived from the direct sales of EMPAVELI to healthcare providers and pharmaceutical distributors. Additionally, Apellis may receive milestone payments, royalties, and licensing fees from strategic partnerships and collaborations with other pharmaceutical companies. These collaborations often involve joint development and commercialization efforts, allowing Apellis to expand the reach of its therapies and tap into new markets.
Apellis Pharmaceuticals Key Performance Indicators (KPIs)
Any
Product Revenue by Segment
Breaks down revenue by specific product lines, highlighting which treatments or drugs are driving sales and indicating potential growth areas or reliance on particular products.
Breaks down revenue by specific product lines, highlighting which treatments or drugs are driving sales and indicating potential growth areas or reliance on particular products.
Data provided by:
Main Street Data
Main Street DataApellis Pharmaceuticals Financial Statement Overview
Summary
Apellis Pharmaceuticals demonstrates strong revenue growth but struggles with profitability, showing a net loss. The balance sheet indicates solid liquidity but a reliance on debt, while cash flow remains negative, highlighting operational inefficiencies.Income Statement
Apellis Pharmaceuticals has shown significant revenue growth from $75 million in 2022 to $709 million in 2024, indicating a strong upward trajectory. However, the company continues to operate at a net loss, with negative EBIT and EBITDA margins, highlighting challenges in achieving profitability. The gross profit margin is robust, but the high net loss reflects ongoing operational inefficiencies.―
Balance Sheet
The company maintains a healthy equity ratio, with stockholders' equity increasing over the years, indicating a solid asset base relative to liabilities. However, the debt-to-equity ratio is moderately high, suggesting reliance on debt financing. The negative net debt indicates strong liquidity, driven by substantial cash reserves.60
Cash Flow
Operating cash flow remains negative, pointing to cash consumption in operations without generating positive free cash flow. The free cash flow has improved over the years but remains negative, indicating challenges in cash generation. The company relies heavily on financing activities to support its cash needs.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 709.95M | 396.59M | 75.42M | 66.56M | 250.65M |
| Gross Profit | ||||
| 592.23M | 338.08M | 69.79M | 61.36M | 225.60M |
| EBIT | ||||
| -236.39M | -517.12M | -594.61M | -536.28M | -213.73M |
| EBITDA | ||||
| -236.39M | -495.21M | -617.39M | -731.27M | -312.23M |
| Net Income Common Stockholders | ||||
| -197.88M | -528.63M | -652.17M | -746.35M | -344.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 411.29M | 352.30M | 551.80M | 700.55M | 877.65M |
| Total Assets | ||||
| 885.05M | 788.73M | 760.22M | 881.76M | 960.57M |
| Total Debt | ||||
| 469.78M | 110.93M | 112.71M | 210.22M | 377.73M |
| Net Debt | ||||
| 58.49M | -240.26M | -439.09M | -429.97M | -188.05M |
| Total Liabilities | ||||
| 656.51M | 594.21M | 590.35M | 683.10M | 756.01M |
| Stockholders Equity | ||||
| 228.54M | 194.52M | 169.87M | 198.66M | 204.56M |
| Cash Flow | Free Cash Flow | |||
| -88.27M | -595.51M | -515.27M | -564.23M | -165.91M |
| Operating Cash Flow | ||||
| -87.87M | -594.74M | -513.75M | -563.13M | -160.49M |
| Investing Cash Flow | ||||
| -403.00K | -674.00K | 59.89M | 247.62M | -316.99M |
| Financing Cash Flow | ||||
| 149.24M | 394.50M | 365.66M | 392.24M | 692.18M |
Apellis Pharmaceuticals Technical Analysis
Negative
20.34
Price Trends
22.35
Negative
26.68
Negative
29.90
Negative
Market Momentum
-0.96
Negative
52.15
Neutral
92.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLS, the sentiment is Negative. The current price of 20.34 is above the 20-day moving average (MA) of 18.73, below the 50-day MA of 22.35, and below the 200-day MA of 29.90, indicating a neutral trend. The MACD of -0.96 indicates Negative momentum. The RSI at 52.15 is Neutral, neither overbought nor oversold. The STOCH value of 92.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APLS.
Apellis Pharmaceuticals Risk Analysis
Apellis Pharmaceuticals disclosed 74 risk factors in its most recent earnings report. Apellis Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Apellis Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.49B | 10.96 | 38.89% | ― | 31.85% | ― | |
52 Neutral | $5.35B | 3.81 | -42.57% | 2.86% | 17.10% | 1.33% | |
51 Neutral | $3.06B | ― | -42.88% | ― | -17.78% | -10.95% | |
50 Neutral | $3.12B | ― | -82.95% | ― | ― | -22.34% | |
50 Neutral | $2.56B | ― | -93.55% | ― | 97.02% | 64.32% | |
48 Neutral | $3.16B | ― | -32.02% | ― | ― | -0.12% | |
45 Neutral | $2.68B | ― | -74.17% | ― | ― | -43.10% |
* Healthcare Sector Average
Performance Comparison
APLS
Apellis Pharmaceuticals
20.34
-28.47
-58.33%
ACAD
ACADIA Pharmaceuticals
14.91
-2.09
-12.29%
MRUS
Merus
44.19
-3.15
-6.65%
SRRK
Scholar Rock Holding
32.91
17.85
118.53%
CRNX
Crinetics Pharmaceuticals
33.76
-12.74
-27.40%
IMVT
Immunovant
15.80
-13.87
-46.75%
Apellis Pharmaceuticals Earnings Call Summary
Earnings Call Date:Feb 28, 2025
(Q4-2024)
| % Change Since: -21.77%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements in revenue growth, successful product launches, and pipeline advancements. However, there are challenges with temporary revenue impacts due to external factors and competitive pressures. Despite a net loss reported for the quarter, the company's strong financial position and strategic initiatives provide a positive outlook.Q4-2024 Updates
Positive Updates
Record Year-Over-Year Revenue Growth
Cipher generated over 120% year-over-year US net revenue growth, contributing to total annual revenue of $781 million, nearly doubling from the previous year.
Successful Launch of XIFAVI
XIFAVI achieved nearly $900 million in sales in less than two years with 510,000 injections administered through December, maintaining over 60% market share.
Expansion and Regulatory Approvals
Received approval from the Therapeutic Goods Administration in Australia for XIFAVI and ongoing regulatory review in Switzerland.
Robust Pipeline Advancements
Presented positive Phase 3 VALION data for EMPHEREZ in C3G and ICF TGF, and initiated plans for a Phase 2 trial with a new combination treatment for GA.
Strong Financial Position
Ended the year with $411 million in cash and cash equivalents, with expectations to fund core business to profitability with existing cash and future product sales.
Negative Updates
Temporary Revenue Impact
First quarter revenue expected to be lower than the fourth quarter due to typical Q1 dynamics and spike in sample usage because of a reported funding gap at non-profit co-pay assistant organizations.
Challenges with Competitive Landscape
Facing competitive pressure from a competitor's label expansion and challenges with maintaining new patient share at around 50% despite market leadership.
Operational Losses
Reported a net loss of $36.4 million for the fourth quarter.
Company Guidance
During the call, Apellis Pharmaceuticals, Inc. provided guidance for 2025, focusing on three strategic pillars: transforming the treatment of geographic atrophy (GA), maximizing the impact of EMPAVELLI in rare diseases, and advancing their innovative pipeline. The company reported significant milestones in 2024, including over 120% year-over-year US net revenue growth for Cipher and nearly $900 million in sales from XIFAV. Apellis plans to initiate a Phase 2 trial for a next-generation treatment for GA in the second quarter of 2025. They aim to secure leadership in the GA market, which is still in early growth stages, with an estimated less than 10% of patients receiving treatment. Additionally, the launch of EMPAVELLI in C3G and ICMPGN is anticipated in the second half of 2025, with plans to initiate Phase 3 trials for two new nephrology indications. Financially, Apellis reported total revenue of $781 million for 2024 and a net loss of $36.4 million for the fourth quarter, with $411 million in cash and cash equivalents at year-end. The company expects operating expenses in 2025 to remain stable compared to 2024.Apellis Pharmaceuticals Corporate Events
Executive/Board Changes
Apellis Pharmaceuticals Elects Craig Wheeler to Board
Positive
Apr 21, 2025
On April 17, 2025, Apellis Pharmaceuticals elected Craig A. Wheeler to its Board of Directors as a Class III director, with his term lasting until the 2026 Annual Meeting of Stockholders. Wheeler, who has an extensive background in the biotechnology sector, will also serve on the Audit Committee starting May 1, 2025. His appointment is expected to bring valuable expertise to the company, potentially impacting its strategic direction and strengthening its industry position.
Spark’s Take on APLS Stock
According to Spark, TipRanks’ AI Analyst, APLS is a Neutral.
Apellis Pharmaceuticals shows strong revenue growth and strategic advancement, particularly in its pipeline and market position. However, ongoing profitability challenges, negative valuation metrics, and bearish technical indicators weigh down the stock’s overall score. The company’s solid cash position and focus on strategic initiatives are positive factors, but the market remains cautious due to competitive pressures and operational inefficiencies.
To see Spark’s full report on APLS stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.