The global biopharmaceutical company Apellis Pharmaceuticals (NASDAQ:APLS), which is focused on delivering life-changing therapies, has been in the headlines. The company is collaborating with Beam Therapeutics (BEAM) to discover novel therapies for complement-driven diseases. Six research programs will be jointly conducted to focus on C3 and other complement targets in the eye, liver, and brain. Over the past year, the company has skyrocketed around 127%.
Recently, Apellis hosted the R&D day in New York and highlighted a wide range of programs, including the recently launched Empaveli to treat PNH, and clinical/preclinical programs across nephrology, neurology, hematology, and ophthalmology indications. PNH is paroxysmal nocturnal hemoglobinuria, an acquired, rare, chronic, and potentially life-threatening blood disease.
According to Needham analyst Joseph Stringer, an update on the pegcetacoplan Phase 3 readout in geographic atrophy (GA) kept the event in focus, the results of which are likely to be announced in September 2021. Geographic atrophy is an advanced form of age-related macular degeneration that leads to progressive and irreversible vision loss.
Based on the positive outcome of the Ph3 GA trials, Stringer remains bullish on the stock and believes that current levels offer an attractive entry point, with the expectation of a significant catalyst in the coming period.
Moreover, the company has a pipeline of other programs to be launched in the coming period, with the target of getting IND and FDA approvals where applicable. IND refers to approval by the FDA of an Investigational New Drug application, which opens the gateway to conducting clinical studies of a new drug in the United States.
According to Stringer, PNH offers a striking opportunity in the near-term for Apellis, but success in GA seems to be the long-term value driver for the stock. The analyst expects a positive outcome from Ph3 following Phase 2 results.
Furthermore, he believes pegcetacoplan to be a runaway success in GA and estimates peak sales of about $3.8 billion in 2035. (See Apellis stock chart on TipRanks)
Following the company’s progress on its pipeline, the analyst maintained a Buy rating and a price target of $85 (21.7% upside potential).
On TipRanks, Apellis is a Strong Buy based on 12 Buy and 2 Hold ratings. The average Apellis price target of $79.09 implies upside potential of 13.2% from the current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Apellis, with 8.5% of investors who hold portfolios on TipRanks increasing their exposure to APLS stock over the past 30 days.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.
