Buy Rating Affirmed for Apellis Pharmaceuticals Amid Positive Outlook and Growth Potential

Analyst Douglas Tsao of H.C. Wainwright maintained a Buy rating on Apellis Pharmaceuticals (APLS – Research Report), retaining the price target of $92.00.

Douglas Tsao has given his Buy rating due to a combination of factors that suggest a promising future for Apellis Pharmaceuticals. The recent reset of the review clock for pegcetacoplan’s marketing authorization application by the European Medicines Agency, following a court ruling, means that a new Committee for Medicinal Products for Human Use (CHMP) opinion is expected by July 2024. The potential for a more favorable view from a newly convened expert panel and the opportunity for Apellis to refine its presentation to address previous concerns has bolstered confidence in the eventual approval of pegcetacoplan for geographic atrophy (GA). Tsao believes that despite the challenges, there is a good chance that the functional benefits of the drug will be recognized by the regulatory agency.

Furthermore, the Buy rating and price target of $92 are underpinned by a valuation model that projects significant revenue growth for Apellis. This model includes sales forecasts for Empaveli across several indications, as well as for Syfovre in GA, with risk adjustments factored in for each product’s probability of success. Empaveli is already commercialized for PNH (Paroxysmal Nocturnal Hemoglobinuria) and has potential in other indications which could increase its market penetration. Tsao’s analysis does not even account for earlier stage assets, which could provide additional upside. The key risks considered in the valuation include regulatory hurdles, potential competition from superior technologies, and the company’s financial position, but Tsao’s overall assessment remains positive.

In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $85.00 price target.

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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.