HC Wainwright Initiates Coverage On Upcoming Complement Franchise Company Apellis Pharmaceuticals

HC Wainwright has initiated coverage on Apellis Pharmaceuticals Inc APLS with a Buy rating and a $75 price target.
The analyst expects Apellis's C3 inhibitor, pegcetacoplan, to be approved and become a blockbuster in geographic atrophy (GA) with peak sales of over $2 billion.
Pegcetacoplan is already approved in IV formulation for a life-threatening blood disorder PNH under the brand name Empaveli, where it has shown itself to be more effective than Alexion's C5 inhibitors, the analyst notes.
HC Wainwright sees peak sales for Empaveli approaching $1 billion in PNH and other key label expansion opportunities.
Earlier today, Apellis submitted its US marketing application for GA and could receive approval before year-end representing a meaningful catalyst for shares.
A market cap of $4.8 billion implies that investors are crediting the company's C3 franchise with blockbuster potential. But the analyst does not fully appreciate the opportunity for pegcetacoplan to generate sales above $2.5 billion in GA alone.
Additionally, the company has significant strategic value for larger companies that recognize the need for a proven complement-focused platform, says HC Wainwright.
Price Action: APLS shares are up 18.30% at $52.97 during the market session on the last check Tuesday.

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