Apellis Pharmaceuticals Reports Q2 Revenue Below Expectations, Celebrates FDA Approval of EMPAVELI

Apellis Pharmaceuticals reported Q2 revenue of $178.494 million, below the expected $188.65 million. Despite this, the company celebrated FDA approval for EMPAVELI, a drug for C3G and primary IC-MPGN, and noted its focus on making the therapy available to patients. Apellis operates in the biotechnology industry with a market capitalization of approximately $2.39 billion and faces challenges in profitability, with a negative EPS of -$1.79 and operating margin of -24%.

Apellis Pharmaceuticals, Inc. (APLS) reported its Q2 2025 earnings on July 2, 2025, with the company posting a revenue of $178.49 million, which fell short of the expected $188.65 million [1]. The earnings per share (EPS) for the period was -$0.33, compared to -$0.28 a year ago. The revenue surprise was -6.35% over the Zacks Consensus Estimate of $190.59 million, while the EPS surprise was +25% over the estimate of -$0.44.

Key revenue metrics for the quarter included product revenue of $171.39 million, down 4.3% year-over-year from the 10-analyst average estimate of $176.3 million. Licensing and other revenue totaled $7.11 million, a decline of 65.4% year-over-year from the 10-analyst average estimate of $12.89 million. Product revenue from EMPAVELI and SYFOVRE decreased by 15.1% and 2.6% year-over-year, respectively [1].

Despite the revenue shortfall, Apellis celebrated a significant milestone with the U.S. Food and Drug Administration (FDA) approving EMPAVELI (pegcetacoplan) for the treatment of C3 glomerulopathy (C3G) and primary immune complex membranoproliferative glomerulonephritis (IC-MPGN) in patients 12 years of age and older [2]. The approval is based on positive six-month results from the VALIANT study, demonstrating a 68% reduction in proteinuria, stabilization of kidney function, and substantial clearance of C3 deposits.

EMPAVELI has shown its potential to preserve kidney function by controlling all three key markers of disease. The drug has a well-established safety profile with 2,200 patient years of data across approved indications. The most common adverse reactions in the VALIANT study were infusion site reactions, pyrexia, nasopharyngitis, influenza, cough, and nausea.

Apellis Pharmaceuticals operates in the biotechnology industry with a market capitalization of approximately $2.39 billion. The company continues to face challenges in profitability, with a negative EPS of -$1.79 and an operating margin of -24% [1]. However, the FDA approval of EMPAVELI marks a significant advancement in the treatment of rare kidney diseases, providing hope for patients with C3G and primary IC-MPGN.

References:
[1] https://www.nasdaq.com/articles/apellis-pharmaceuticals-apls-reports-q2-earnings-what-key-metrics-have-say
[2] https://investors.apellis.com/news-releases/news-release-details/fda-approves-apellis-empavelir-pegcetacoplan-first-c3g-and