Apellis 2025 Q1 Earnings Misses Targets as Net Income Deepens by 38.8%

Apellis Pharmaceuticals reported its fiscal 2025 Q1 earnings on May 7th, 2025. The company missed analysts' expectations, recording a revenue of $166.8 million against forecasts of $198 million. Apellis further reported a net loss of $92.2 million, significantly wider than the anticipated $0.34 loss per share. The company is optimistic about future profitability, citing its cash resources and product sales as supportive factors. However, the absence of sales guidance for SYFOVRE raises questions about future performance consistency.

Revenue

Apellis's revenue in the first quarter of 2025 amounted to $166.8 million, marking a 3.2% decline from the previous year's $172.32 million. This revenue was primarily driven by U.S. net product sales, with SYFOVRE generating $130.2 million and EMPAVELI adding $19.7 million. Additionally, licensing and other revenue from collaborations contributed $16.9 million.

Earnings/Net Income

Apellis's losses widened to $0.74 per share in Q1 2025, up from $0.54 per share in Q1 2024. The net loss increased by 38.8%, amounting to $92.22 million, reflecting ongoing financial challenges. The EPS results were disappointing, highlighting deeper financial struggles.

Price Action

The stock price of Apellis climbed 4.84% during the latest trading day, dropped 6.35% during the most recent trading week, and fell 9.91% month-to-date.

Post-Earnings Price Action Review

Over the past five years, the strategy of buying APLS shares following a revenue increase has consistently underperformed compared to the broader market. This approach yielded a return of -8.41%, starkly contrasting the benchmark's 84.08% return. The strategy's negative Sharpe ratio of -0.15 underscores its poor risk-adjusted performance, while the maximum drawdown of -15.43% indicates significant volatility. These figures highlight the strategy's inefficacy during this period, offering insight into the potential risks for investors considering similar tactics.

CEO Commentary

“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. However, revenue was impacted by funding shortages at third-party co-pay assistance programs and a larger-than-expected drawdown of total channel inventory, including physician offices,” said Cedric Francois, M.D., Ph.D., Chief Executive Officer at Apellis. “We also made meaningful progress toward a potential FDA approval of EMPAVELI in C3G and IC-MPGN, with a decision in these new indications expected in July. As we grow our commercial business and advance our innovative pipeline, Apellis is on a clear path to becoming a profitable, well-established biotechnology company.”

Guidance

Apellis anticipates its cash, combined with future product sales and ex-US royalties, will be sufficient to fund operations to profitability. The company has not provided sales guidance for SYFOVRE, citing the need for a more steady state before making predictions. The PDUFA target action date for EMPAVELI in C3G and IC-MPGN is set for July 28, 2025, with expectations for strong market positioning upon approval.

Additional News

Recently, Apellis appointed Craig Wheeler to its Board of Directors. Wheeler, the CEO of Headwaters Biotech Advisors, brings over 30 years of leadership experience in the biopharmaceutical industry, including his tenure as president and CEO of Momenta Pharmaceuticals. Additionally, the company is advancing its investigational pre-clinical research for a one-time neonatal Fc receptor treatment using gene editing technology from Beam Therapeutics. These strategic moves reflect Apellis's commitment to strengthening its leadership and continuing innovation in biotechnology.