On Tuesday, JPMorgan reiterated its Overweight rating on Apellis Pharmaceuticals (NASDAQ:APLS) with a steady price target of $79.00, following a strong first quarter performance for the company's Syfovre. The drug's revenue for the first quarter of 2024 surpassed the consensus estimate of $129 million, reaching $137.5 million, and also exceeded the buy-side consensus of approximately $135 million.
Apellis Pharmaceuticals reported that approximately 77,000 doses of Syfovre were distributed in the first quarter, with 72,000 for commercial use. This figure contributes to a total of around 250,000 injections, including those administered during clinical trials. The company's commentary on the retinal vasculitis rate remained in line with previous statements.
The analyst from JPMorgan highlighted that the market's attention is likely to focus on the dynamics in the geographic atrophy (GA) market after the introduction of the Izervay J-code. This includes looking at the growth on a month-to-month basis and the initial weeks following the Izervay J-code implementation.
Furthermore, the Committee for Medicinal Products for Human Use (CHMP) is expected to provide an opinion on Syfovre no later than July 2024. The company has set modest expectations for approval within this region. Additionally, Apellis is on schedule to release Phase 3 VALIANT trial data for pegcetacoplan in the treatment of C3 glomerulopathy (C3G) and immune complex membranoproliferative glomerulonephritis (IC-MPGN) around the middle of the year.
The firm's positive outlook on Apellis shares is based on the long-term potential of Syfovre for treating GA in the U.S. market, as well as the additional prospects provided by the company's pipeline, including the upcoming VALIANT trial results.
InvestingPro Insights
InvestingPro data indicates a remarkable revenue growth for Apellis Pharmaceuticals (NASDAQ:APLS) in the last twelve months as of Q4 2023, with an increase of 425.83%. This aligns with the strong first-quarter performance of Syfovre highlighted by JPMorgan. The company's market capitalization stands at $5.92 billion, reflecting investor confidence amidst a challenging market. Despite a negative gross profit margin of -4.11% in the same period, which underscores the concerns raised about weak gross profit margins, analysts have revised their earnings upwards for the upcoming period, suggesting a potential turnaround.
InvestingPro Tips also reveal that Apellis has a significant return over the last week of 10.45%, which may interest short-term investors. However, it's important to note that the company is not expected to be profitable this year, and it trades at a high Price / Book multiple of 30.44. For investors looking for more comprehensive analysis, there are additional InvestingPro Tips available, which can be accessed at: https://www.investing.com/pro/APLS. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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