H.C. Wainwright analyst Douglas Tsao has maintained their bullish stance on APLS stock, giving a Buy rating today.
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Douglas Tsao has given his Buy rating due to a combination of factors including Apellis Pharmaceuticals’ strong financial performance and promising product developments. The company reported a significant increase in total revenue, primarily driven by a one-time upfront payment from a royalty monetization deal, which exceeded both the firm’s and market expectations. Additionally, the performance of Empaveli, a key product, showed positive signs with a 9% year-over-year increase in sales, reinforcing confidence in its market potential.
Despite some sluggishness in Syfovre volumes, the company maintains a leadership position in the geographic atrophy market. The launch of Empaveli in new indications such as C3G and IC-MPGN has been encouraging, with a substantial number of patient start forms received shortly after launch, indicating a significant unmet need. Tsao’s valuation model for Apellis is based on a risk-adjusted revenue estimate for Empaveli and Syfovre, with potential upside from earlier stage assets not yet included. However, he also notes risks related to regulatory approvals and market adoption, as well as potential competition from emerging technologies.