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Investing.com -- Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) saw its stock plummet 12.1% after reporting first quarter 2025 results that fell short of analyst expectations, primarily due to inventory challenges and funding issues with co-pay assistance programs.
The biopharmaceutical company posted adjusted earnings per share of -$0.74, missing the analyst consensus of -$0.34 by $0.40. Revenue for the quarter came in at $166.8 million, significantly below the $197.77 million estimate and down 3.2% YoY.
Apellis’ flagship product SYFOVRE, used to treat geographic atrophy, generated $130.2 million in U.S. net product sales, down from $137.5 million in the same quarter last year. The company cited a "larger-than-expected drawdown of total channel inventory" and "funding shortages at third-party co-pay assistance programs" as key factors impacting revenue.
Despite the revenue shortfall, SYFOVRE injection demand grew 4% quarter-over-quarter, with the company delivering approximately 92,000 doses to physician offices. Apellis also reported capturing over 60% share of the overall geographic atrophy market.
"In the first quarter, we were pleased to see continued growth in SYFOVRE injection demand—a key indicator of long-term market strength—and an increase in share of new patient starts, already reaching 55% in April," said Cedric Francois, M.D., Ph.D., chief executive officer at Apellis.
The company’s other product, EMPAVELI, used to treat paroxysmal nocturnal hemoglobinuria, generated $19.7 million in U.S. net product revenue, down from $25.6 million in Q1 2024.
Apellis ended the quarter with $358.4 million in cash and cash equivalents. The company expects its current cash position, combined with future product sales and ex-US royalties, to be sufficient to fund operations to profitability.
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