Oil prices rise on talk of Russia sanctions; bouncing off recent lows
Investing.com - William Blair has reiterated an Outperform rating on Apellis Pharmaceuticals (NASDAQ:APLS), a company currently valued at $2.41 billion with impressive revenue growth of 48% over the last twelve months. The rating comes as competitor Astellas reported preliminary second-quarter Izervay revenue of $110 million, representing a 22% increase from the previous quarter. According to InvestingPro data, Apellis is currently trading below its Fair Value, suggesting potential upside opportunity.
The modest growth from Astellas’s Izervay appears less significant when compared to the $107 million reported in the fourth quarter of 2024, suggesting the recent increase may partially reflect normalization after one-time factors affected first-quarter results. Despite this, Astellas maintained its fiscal 2025 guidance of $750 million in Izervay sales and reported a 45% total market share. InvestingPro analysis reveals that while Apellis operates with moderate debt levels and maintains strong liquidity with a current ratio of 4.08, analysts have recently revised their earnings expectations downward.
Market share data between Astellas and Apellis shows some discrepancies, with William Blair noting that Apellis’s data represents a greater proportion of the market and may be more representative. Apellis previously reported that its Syfovre product had been steadily gaining new patient share over several months, beginning before Izervay’s November 2024 Complete Response Letter (CRL). With an overall Financial Health Score rated as "GOOD" by InvestingPro, the company appears well-positioned to maintain its market momentum.
William Blair is maintaining its second-quarter Syfovre revenue estimate of $152.9 million as it awaits Apellis’s earnings report to determine whether Izervay’s rebound represents a sustainable trend and its potential impact on Syfovre demand.
Astellas projects 350,000-400,000 patients will be treated with complement inhibitors by 2027, with Izervay capturing 50-55% market share. Even with these competitive projections, William Blair calculates Syfovre could still generate approximately $1.12 billion in sales by 2027, based on treating roughly 158,000 patients.
In other recent news, Apellis Pharmaceuticals reported a 22% increase in Izervay revenue for the second quarter, reaching $110 million, despite a modest rise in vials shipped. Cantor Fitzgerald maintains an Overweight rating on Apellis with a $39 price target, noting projected revenue for Syfovre at around $150 million, slightly below consensus estimates. Additionally, Apellis has entered into a significant royalty agreement with Swedish Orphan Biovitrum (Sobi), securing up to $300 million in non-dilutive funding. This deal involves Apellis receiving $275 million upfront in exchange for 90% of future ex-U.S. royalties for Aspaveli, with potential additional payments based on European regulatory approvals. Mizuho (NYSE:MFG) maintains a Neutral rating on Apellis, valuing the agreement positively but expressing concerns about Syfovre’s growth. William Blair also reiterates an Outperform rating, emphasizing the financial flexibility provided by the Sobi agreement and highlighting Syfovre’s potential market gains. The agreement, described as a Royalty Buy-Down, adjusts Sobi’s royalty payment obligations and includes performance-based caps. Apellis retains exclusive U.S. commercialization rights for EMPAVELI, marketed outside the U.S. as Aspaveli.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.