Impact of Izervay’s Growth on Apellis Pharmaceuticals: Maintaining a Hold Rating Amidst Rising Competition

Analyst Graig Suvannavejh of Mizuho Securities reiterated a Hold rating on Apellis Pharmaceuticals (APLS – Research Report), retaining the price target of $60.00.

Graig Suvannavejh has given his Hold rating due to a combination of factors related to Apellis Pharmaceuticals’ competitive landscape and market performance. The recent financial results of Astellas Pharma’s Izervay—a main competitor to Apellis’s Syfovre—have demonstrated stronger than expected sales, surpassing their own forecasts for the quarter and the fiscal year. Astellas has also provided a positive outlook for Izervay, projecting a significant market share gain in the upcoming year, which suggests a growing competitive threat to Apellis’s product.

In addition to the sales performance, Astellas’s estimates for Izervay’s growth and market adoption indicate a robust uptake among physicians and patients. The anticipation of capturing approximately 40% of the total geographic atrophy patient market by the end of the next fiscal year poses a substantial challenge to Apellis. Moreover, the favorable safety profile reported for Izervay could further strengthen its market position against Syfovre. These factors contribute to the Hold rating, reflecting the heightened competition and potential obstacles for Apellis Pharmaceuticals in maintaining or growing its market share.

In another report released on April 18, Wells Fargo also maintained a Hold rating on the stock with a $62.00 price target.

Based on the recent corporate insider activity of 121 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.

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Apellis Pharmaceuticals (APLS) Company Description:

Apellis Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company, which develops novel therapeutic compounds. It develops complement immunotherapies for the treatment of complement-dependent autoimmune and inflammatory diseases through APL-2 product. The company was founded by Candace Rose Depp, Pascal Deschatelets, Cedric Francois, Alec Machiels on September 25, 2009 and is headquartered in Waltham, MA.