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Investing.com - Goldman Sachs downgraded Apellis Pharmaceuticals (NASDAQ:APLS) from Neutral to Sell and lowered its price target to $18.00, citing concerns about the growth trajectory of the company’s geographic atrophy treatment Syfovre. The stock, currently trading at $22.22, has already declined over 30% year-to-date, according to InvestingPro data, which shows the company maintains a solid current ratio of 3.77, indicating strong short-term liquidity.
The investment bank highlighted several risks to Syfovre’s outlook, including limited penetration of geographic atrophy therapies into the diagnosed population, which currently stands at approximately 10-15% according to Apellis and Astellas. Goldman Sachs also noted that physicians continue to debate the functional meaningfulness of reduction in geographic atrophy lesion area. Despite these concerns, InvestingPro data reveals the company achieved 20% revenue growth in the last twelve months, with analysts projecting 29% growth for the upcoming fiscal year.
Additional concerns include a superior risk-benefit perception associated with competitor drug Izervay based on key opinion leader discussions, and high patient attrition rates due to funding shortages in co-pay assistance programs. The firm mentioned that these constraints have worsened in recent weeks as a not-for-profit organization separated support programs for retinal and macular diseases.
Goldman Sachs now models peak sales of $1.1 billion for Syfovre in 2030, below the consensus estimate of $1.3 billion. The firm expressed optimism about the launch of Empaveli in rare kidney diseases C3G/IC-MPGN, citing superior data and broader labeling compared to competitor Fabhalta, but believes the current share price already reflects this opportunity. According to InvestingPro, analyst targets for APLS range from $19 to $60, with 9 analysts recently revising their earnings estimates upward. Subscribers can access the full Pro Research Report for comprehensive analysis of Apellis’s growth prospects and valuation metrics.
The downgrade also noted an absence of near-term catalysts in Apellis’ pipeline that could drive share price upside, with longer-term growth for Syfovre potentially emerging in the second half of 2026 and beyond through commercial developments such as pre-filled syringe presentation and AI-enabled technologies.
In other recent news, Apellis Pharmaceuticals Inc. announced its Q2 2025 earnings, which exceeded analysts’ expectations for earnings per share (EPS). The company reported an EPS of -$0.33, outperforming the anticipated -$0.48. However, the revenue figures did not meet projections, coming in at $178 million compared to the forecasted $186.76 million. Despite the shortfall in revenue, the unexpected EPS results and ongoing progress in product development have positively influenced investor sentiment. These recent developments highlight the company’s strategic focus and operational performance. Analysts and investors are closely monitoring Apellis Pharmaceuticals’ financial health and strategic initiatives. The earnings report has sparked renewed interest in the company’s future prospects.
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