In a report released on September 26, Salveen Richter from Goldman Sachs downgraded Apellis Pharmaceuticals to a Sell, with a price target of $18.00.
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Salveen Richter has given his Sell rating due to a combination of factors impacting Apellis Pharmaceuticals. One major concern is the limited penetration of geographic atrophy therapies into the diagnosed population, which currently stands at about 10-15%. This is compounded by ongoing debates among physicians regarding the functional significance of reducing GA lesion areas. Additionally, there is a perception that Izervay offers a superior risk-benefit profile, which could affect Apellis’s market position.
Another factor influencing the Sell rating is the high patient attrition rates and the challenges posed by funding shortages in co-pay assistance programs. These financial constraints have led to further separation of support programs for retinal and macular diseases, which could hinder patient access to treatments. While there is optimism surrounding the launch of Empaveli in rare kidney diseases, the current share price already reflects this potential, and there are no immediate pipeline catalysts expected to drive significant upside. These dynamics collectively contribute to a cautious outlook on Apellis Pharmaceuticals.
Richter covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Biogen, and Sarepta Therapeutics. According to TipRanks, Richter has an average return of 8.3% and a 43.45% success rate on recommended stocks.