Morgan Stanley Raises Apellis Target Price 4% to 26 Dollars

Morgan Stanley has increased the target price for Apellis Pharmaceuticals (APLS.US) from 25 dollars to 26 dollars, while maintaining a "hold" rating. The adjustment is based on the company's market position and recent financial strategies. The analyst highlighted the strategic significance of the major licensing agreement Apellis has reached with Sobi. This agreement secures up to 300 million dollars in revenue for Apellis, including a 275 million dollars upfront payment, and reduces Sobi's licensing obligations for Aspaveli sales by 90%. This move provides Apellis with immediate financial benefits and potentially alleviates investor concerns about its profitability.

Despite these positive factors, the analyst remains cautious about Apellis' future development. While the upcoming regulatory decisions from the FDA and CHMP, as well as the potential new indications for Empaveli/Aspaveli, are significant positives, they also introduce a similar level of uncertainty. As a biopharmaceutical company in the commercialization stage, Apellis is dedicated to discovering, developing, and commercializing innovative therapies for unmet medical needs. Its core product line includes EMPAVELI and SYFOVRE. SYFOVRE is used to treat geographic atrophy secondary to age-related macular degeneration, while EMPAVELI is used to treat paroxysmal nocturnal hemoglobinuria.