Apellis Pharmaceuticals Announces Q1 2024 Financial Results

Apellis Pharmaceuticals, Inc. released its financial results for the first quarter of 2024, highlighting significant achievements and promising future prospects. The company reported total revenues of $172.3 million, a substantial increase from the $44.8 million reported in the first quarter of 2023. This growth was primarily driven by the U.S. net product sales of SYFOVRE® and EMPAVELI®, which generated $137.5 million and $25.6 million, respectively.

CEO Cedric Francois emphasized the company's progress in expanding SYFOVRE's reach within the U.S. market and progressing EMPAVELI in various therapeutic areas. SYFOVRE, a treatment for geographic atrophy (GA) secondary to age-related macular degeneration (AMD), saw a 20% revenue growth in Q1 2024. It is now the leading treatment for GA, with approximately 77,000 doses delivered to physician practices during the quarter. The company also launched a direct-to-consumer awareness campaign in April 2024 to educate GA patients about SYFOVRE.

In Europe, Apellis announced that the European Medicines Agency (EMA) has reset the marketing authorization application (MAA) review for pegcetacoplan to day 180, following a procedural update. An opinion from the Committee for Medicinal Products for Human Use (CHMP) is expected by July 2024. Additionally, leading retina specialist Dr. Philip Ferrone joined Apellis as the chief medical retina advisor in March 2024 to enhance their clinical strategy.

EMPAVELI, used for treating paroxysmal nocturnal hemoglobinuria (PNH), continued to perform well with $25.6 million in U.S. net product revenue. The therapy maintained a high patient compliance rate of 97%. Looking ahead, Apellis is on track to report topline Phase 3 data for systemic pegcetacoplan in C3 glomerulopathy (C3G) and immune complex membranoproliferative glomerulonephritis (IC-MPGN) by mid-2024. The VALIANT study, a randomized, placebo-controlled, double-blinded, multi-center trial, is evaluating the safety and efficacy of systemic pegcetacoplan in these conditions.

The company's first quarter financial results also highlighted a decrease in research and development (R&D) expenses to $84.7 million, compared to $110.0 million in the same period of 2023. This reduction was attributed to lower program-specific external costs, compensation, and related personnel costs, despite a one-time $15.0 million expense related to discontinuing systemic pegcetacoplan for cold agglutinin disease (CAD). Meanwhile, selling, general, and administrative (SG&A) expenses rose to $129.5 million from $102.1 million in the previous year, driven by increased personnel costs and commercial preparation activities.

Despite reporting a net loss of $66.4 million for the first quarter of 2024, an improvement from the net loss of $177.8 million in the same period of 2023, Apellis maintained a robust cash position. As of March 31, 2024, the company held $325.9 million in cash and cash equivalents, bolstered by proceeds from the unwind of its capped call transactions related to its 3.500% Senior Convertible Notes due 2026.

Dr. Francois expressed confidence in the company's ability to fund its operations for the foreseeable future, supported by the projected revenues from SYFOVRE and EMPAVELI. The ongoing efforts to advance their pipeline, combined with the successful commercialization of their existing products, position Apellis well for continued growth and innovation in the biopharmaceutical sector.

The strong performance in Q1 2024 underscores Apellis' commitment to developing life-changing therapies for patients with challenging diseases. The company’s strategic initiatives, coupled with its solid financial foundation, pave the way for sustained progress and impactful contributions to global healthcare.