Apellis Pharmaceuticals (APLS) AI Stock Analysis

• Market Cap: $2.22B
• Dividend Yield: N/A
• Average Volume (3M): 2.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 48.04%
• EPS Growth: 48.16%
• Country: US
• Employees: 705
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.74
• Shares Outstanding: 125,682,260
• 10 Day Avg. Volume: 3,662,555
• 30 Day Avg. Volume: 2,977,732
• PEG Ratio: -0.50
• Price to Book (P/B): 9.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.63
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: -2.13
• 1Y Price Target: $37.50
• Price Target Upside: 112.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

Apellis Pharmaceuticals displays robust revenue growth and strategic progress with its product pipeline. However, persistent profitability issues, negative valuation metrics, and bearish technical indicators contribute to a cautious overall stock score. The company's solid cash position and recent board appointment are positive, but challenges such as operational inefficiencies and competitive pressures weigh on the outlook.

Positive Factors

Future Opportunities

Upcoming C3G/IC-MPGN approval and launch for Empaveli in renal are key focus areas, given its positive data and high odds of approval.

Market Position

Syfovre remains the market leader in geographic atrophy with over 60% share, and its share of new patient starts continues to increase.

Product Efficacy

Increasing efficacy of Syfovre over time is resonating well with physicians.

Negative Factors

Competitive Pressure

The biggest potential headwind factor for Syfovre is the full market return of Astellas' Izervay, as they battle for a share of new GA patient starts.

Funding Issues

There is a funding shortage at the co-pay assistance programs, which is unlikely to be resolved soon, potentially increasing the free drug rate and leading to downside for numbers.

Revenue Challenges

Syfovre sales fell short of Street expectations with sales of just $130.2M due to channel draw down and funding storage at co-pay assistance foundations.

Apellis Pharmaceuticals Business Overview & Revenue Model

Company Description

Apellis Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutic compounds through the inhibition of the complement system for autoimmune and inflammatory diseases. The company's lead product candidate is pegcetacoplan that is in Phase III clinical trials for the treatment of geographic atrophy (GA) in age-related macular degeneration and paroxysmal nocturnal hemoglobinuria (PNH) diseases. It also develops EMPAVELI (systemic pegcetacoplan) for the treatment of cold agglutinin disease (CAD), and hematopoietic stem cell transplantation-associated thrombotic microangiopathy (HSCT-TMA) in hematology; C3 glomerulopathy (C3G), and immune complex membranoproliferative glomerulonephritis (IC-MPGN) in nephrology; and amyotrophic lateral sclerosis (ALS) in neurology. In addition, the company develops APL-2006, a bispecific C3 and VEGF inhibitor for treating complement-mediated disorders; APL-1030, a C3 inhibitor for the treatment of multiple neurodegenerative diseases; and the combination of EMPAVELI and a small interfering RNA, or siRNA for reducing the production of C3 proteins by the liver. It has a collaboration and license agreement with Swedish Orphan Biovitrum AB (publ) to co-develop pegcetacoplan; and a research collaboration with Beam Therapeutics Inc. focused on the use of Beam's base editing technology to discover new treatments for complement-driven diseases. Apellis Pharmaceuticals, Inc. was incorporated in 2009 and is based in Waltham, Massachusetts.

How the Company Makes Money

Apellis Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products. The company's flagship product, EMPAVELI (pegcetacoplan), is a targeted C3 therapy used for the treatment of paroxysmal nocturnal hemoglobinuria (PNH), a rare blood disorder. Revenue is derived from the direct sales of EMPAVELI to healthcare providers and pharmaceutical distributors. Additionally, Apellis may receive milestone payments, royalties, and licensing fees from strategic partnerships and collaborations with other pharmaceutical companies. These collaborations often involve joint development and commercialization efforts, allowing Apellis to expand the reach of its therapies and tap into new markets.

Apellis Pharmaceuticals Financial Statement Overview

Summary

Apellis Pharmaceuticals shows strong revenue growth but faces challenges in profitability. The balance sheet indicates solid liquidity, yet cash flow remains negative, necessitating external financing. Operational inefficiencies are a concern.

Income Statement

Apellis Pharmaceuticals has shown significant revenue growth from $75 million in 2022 to $709 million in 2024, indicating a strong upward trajectory. However, the company continues to operate at a net loss, with negative EBIT and EBITDA margins, highlighting challenges in achieving profitability. The gross profit margin is robust, but the high net loss reflects ongoing operational inefficiencies.

Balance Sheet

The company maintains a healthy equity ratio, with stockholders' equity increasing over the years, indicating a solid asset base relative to liabilities. However, the debt-to-equity ratio is moderately high, suggesting reliance on debt financing. The negative net debt indicates strong liquidity, driven by substantial cash reserves.

Cash Flow

Operating cash flow remains negative, pointing to cash consumption in operations without generating positive free cash flow. The free cash flow has improved over the years but remains negative, indicating challenges in cash generation. The company relies heavily on financing activities to support its cash needs.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
781.37M	396.59M	75.42M	66.56M	250.65M
	Gross Profit
663.64M	338.08M	69.79M	61.36M	225.60M
	EBIT
-164.98M	-517.12M	-594.61M	-536.28M	-213.73M
	EBITDA
-154.53M	-495.21M	-617.39M	-731.27M	-312.23M
	Net Income Common Stockholders
-197.88M	-528.63M	-652.17M	-746.35M	-344.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
411.29M	352.30M	551.80M	700.55M	877.65M
	Total Assets
885.05M	788.73M	760.22M	881.76M	960.57M
	Total Debt
469.78M	110.93M	112.71M	210.22M	377.73M
	Net Debt
58.49M	-240.26M	-439.09M	-429.97M	-188.05M
	Total Liabilities
656.51M	594.21M	590.35M	683.10M	756.01M
	Stockholders Equity
228.54M	194.52M	169.87M	198.66M	204.56M
Cash Flow		Free Cash Flow
-88.27M	-595.51M	-515.27M	-564.23M	-165.91M
	Operating Cash Flow
-87.87M	-594.74M	-513.75M	-563.13M	-160.49M
	Investing Cash Flow
-403.00K	-674.00K	59.89M	247.62M	-316.99M
	Financing Cash Flow
149.24M	394.50M	365.66M	392.24M	692.18M

Apellis Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLS, the sentiment is Negative. The current price of 17.67 is below the 20-day moving average (MA) of 18.04, below the 50-day MA of 20.56, and below the 200-day MA of 28.76, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 29.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APLS.

Apellis Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	79 Outperform	$3.68B	16.01	37.24%	―	22.42%	―
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
APLS	50 Neutral	$2.22B	―	-103.82%	―	48.04%	48.16%
SRRK	50 Neutral	$2.86B	―	-106.71%	―	―	-22.34%
CRNX	46 Neutral	$2.93B	―	-30.84%	―	―	-1.20%
IMVT	45 Neutral	$2.50B	―	-74.17%	―	―	-43.10%
MRUS	41 Neutral	$2.88B	―	-58.66%	―	42.77%	-51.27%

Apellis Pharmaceuticals Corporate Events

Apellis Pharmaceuticals Elects Craig Wheeler to Board

On April 17, 2025, Apellis Pharmaceuticals elected Craig A. Wheeler to its Board of Directors as a Class III director, with his term lasting until the 2026 Annual Meeting of Stockholders. Wheeler, who has an extensive background in the biotechnology sector, will also serve on the Audit Committee starting May 1, 2025. His appointment is expected to bring valuable expertise to the company, potentially impacting its strategic direction and strengthening its industry position.

Spark’s Take on APLS Stock

According to Spark, TipRanks’ AI Analyst, APLS is a Neutral.

Apellis Pharmaceuticals shows strong revenue growth and strategic advancement, particularly in its pipeline and market position. However, ongoing profitability challenges, negative valuation metrics, and bearish technical indicators weigh down the stock’s overall score. The company’s solid cash position and focus on strategic initiatives are positive factors, but the market remains cautious due to competitive pressures and operational inefficiencies.

To see Spark’s full report on APLS stock, click here.