Apellis Pharmaceuticals (APLS) AI Stock Analysis

• Market Cap: $3.56B
• Dividend Yield: N/A
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 20.02%
• EPS Growth: 33.45%
• Country: US
• Employees: 705
• Sector: Healthcare
• Sector Strength: 49
• Industry: Biotechnology
• EPS (TTM): -0.33
• Shares Outstanding: 126,289,910
• 10 Day Avg. Volume: 1,775,960
• 30 Day Avg. Volume: 2,768,532
• PEG Ratio: 0.31
• Price to Book (P/B): 17.30
• Price to Sales (P/S): 5.06
• P/FCF Ratio: -44.79
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: -12.78
• 1Y Price Target: $37.38
• Price Target Upside: 30.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 58 Neutral
• Price Target: $25.00 ▼(-12.74% Downside)

Apellis Pharmaceuticals' overall score reflects strong technical momentum and strategic corporate actions, offset by financial challenges such as negative profitability and high debt levels. The company's growth potential is promising, but achieving sustainable profitability remains a key hurdle.

Positive Factors

Market Opportunities

Empaveli label expansion into C3G and IC-MPGN per FDA approval is allowing investors to focus on new opportunities.

Product Efficacy

Empaveli's position as the sole C3-targeted therapy and rapid onset of action in preserving renal function is highlighted.

Revenue Potential

A strong launch could provide upside to the current estimate for Empaveli revenues in 2026.

Negative Factors

Funding Issues

Issues remain for the patient copay assistance program funding, which is still keeping some patients on the sidelines.

Market Challenges

The launch could be impacted by the fragmented market, underdiagnosis, and issues with payor access.

Revenue Shortfall

APLS reported total revenue of $178M, below the expected $195M and FactSet consensus of $187M, driven by a $13M headwind in the GA franchise due to higher sample vial usage.

Apellis Pharmaceuticals Business Overview & Revenue Model

Company Description

Apellis Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing innovative therapies to treat serious diseases. The company specializes in complement immunotherapy, targeting the complement system to provide solutions for conditions such as geographic atrophy and other rare diseases. Apellis is primarily engaged in the research, development, and commercialization of its core product, pegcetacoplan, which is designed to address unmet medical needs in the ophthalmology and hematology sectors.

How the Company Makes Money

Apellis Pharmaceuticals generates revenue primarily through the sale of its approved therapies, notably pegcetacoplan, which is marketed for the treatment of geographic atrophy, a complication of age-related macular degeneration. The company's revenue model is based on a combination of product sales, potential royalties from partnerships, and collaborations with other pharmaceutical companies. Significant partnerships with larger pharmaceutical firms enhance its research capabilities and market reach, contributing to Apellis's earnings. Additionally, the company may receive milestone payments from partners based on the achievement of specific development and commercial milestones.

Apellis Pharmaceuticals Financial Statement Overview

Summary

Apellis Pharmaceuticals demonstrates significant revenue growth, primarily from SYFOVRE, but struggles with profitability and financial leverage. The company shows a strong growth trajectory but faces challenges due to negative EBIT, net profit margins, and a high debt-to-equity ratio. Positive free cash flow is a promising sign, indicating efforts towards better cash management.

Income Statement

Apellis Pharmaceuticals shows moderate revenue growth over the years but is struggling with profitability as evidenced by negative EBIT and net profit margins. Revenue has grown from $66.56M in 2021 to $747.54M in TTM (Trailing-Twelve-Months), indicating a strong growth trajectory. However, persistent losses, with a net income of -$228.17M in TTM, highlight the challenge of achieving profitability.

Balance Sheet

The company has a relatively high debt-to-equity ratio, which increased from 0.52 in 2020 to 0.70 in TTM, indicating a reliance on debt financing. The return on equity remains negative due to ongoing losses. The equity ratio is low at 19.04% in TTM, reflecting limited equity buffer but a manageable asset base with $821.39M in total assets.

Cash Flow

While free cash flow remains negative in historical periods, the TTM shows a positive free cash flow of $4.41M, indicating some improvement. The operating cash flow to net income ratio is low due to negative net income, but the positive shift in free cash flow suggests efforts towards better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	754.65M	781.37M	396.59M	75.42M	66.56M	250.65M
Gross Profit	631.80M	663.64M	338.08M	69.79M	61.36M	225.60M
EBITDA	-178.43M	-154.53M	-495.21M	-617.39M	-731.27M	-312.23M
Net Income	-228.17M	-197.88M	-528.63M	-652.17M	-746.35M	-344.87M
Balance Sheet
Total Assets	821.39M	885.05M	788.73M	760.22M	881.76M	960.57M
Cash, Cash Equivalents and Short-Term Investments	371.47M	411.29M	352.30M	551.80M	700.55M	877.65M
Total Debt	469.77M	469.78M	110.93M	112.71M	210.22M	377.73M
Total Liabilities	665.09M	656.51M	594.21M	590.35M	683.10M	756.01M
Stockholders Equity	156.31M	228.54M	194.52M	169.87M	198.66M	204.56M
Cash Flow
Free Cash Flow	4.41M	-88.27M	-595.51M	-515.27M	-564.23M	-165.91M
Operating Cash Flow	4.49M	-87.87M	-594.74M	-513.75M	-563.13M	-160.49M
Investing Cash Flow	-77.00K	-403.00K	-674.00K	59.89M	247.62M	-316.99M
Financing Cash Flow	5.37M	149.24M	394.50M	365.66M	392.24M	692.18M

Apellis Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLS, the sentiment is Positive. The current price of 28.65 is above the 20-day moving average (MA) of 26.93, above the 50-day MA of 22.58, and above the 200-day MA of 24.48, indicating a bullish trend. The MACD of 1.64 indicates Positive momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 79.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APLS.

Apellis Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	73 Outperform	$4.33B	19.33	33.18%	―	14.41%	627.78%
MRUS	62 Neutral	$5.01B	―	-48.54%	―	59.77%	-92.92%
APLS	58 Neutral	$3.56B	―	-108.49%	―	20.02%	33.45%
CRNX	52 Neutral	$3.14B	―	-36.94%	―	―	-9.10%
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
SRRK	50 Neutral	$3.12B	―	-172.08%	―	―	-29.50%
IMVT	45 Neutral	$2.63B	―	-77.58%	―	―	-48.38%

Apellis Pharmaceuticals Corporate Events

Apellis Pharmaceuticals Secures $275M Royalty Buy-Down Deal

On July 1, 2025, Apellis Pharmaceuticals entered into a Royalty Buy-Down Agreement with Swedish Orphan Biovitrum AB, where Sobi will pay Apellis $275 million upfront and up to $25 million upon EMA approval of Aspaveli for certain conditions. In return, Sobi’s royalty obligations under a previous agreement will be reduced by 90%, with conditions tied to Aspaveli’s performance. This agreement, consented by the Company’s lenders, also extends certain prepayment premium periods under Apellis’s financing agreement by one year.

Apellis Pharmaceuticals Holds Annual Stockholders Meeting

On June 3, 2025, Apellis Pharmaceuticals held its Annual Meeting of Stockholders, where key decisions were made. A. Sinclair Dunlop, Alec Machiels, and Keli Walbert were elected as class II directors for a three-year term. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025. The stockholders approved the executive compensation and recommended holding future advisory votes on executive compensation annually.