Apellis's Stock Under Pressure On Syfovre Safety Concerns: Analyst Slashes Price Target

Since Friday, Apellis Pharmaceuticals Inc APLS shares have plummeted around 50% after the stock came under pressure following the disclosure of safety events connected to Syfovre. 

Syfovre (pegcetacoplan injection) is indicated for geographic atrophy secondary (GA) to age-related macular degeneration.

While management also noted that 60,000 vials have shipped since the February launch, the more significant update is that retinal vasculitis events are occurring at a rate of ~1/10,000 injections.

Wedbush analyst has lowered the price target from $86 to $40, with a Neutral rating.

The analyst argues that current levels offer more favorable risk/reward than when the stock was in the ~$80s/share, but with additional physician checks and reviewing competitive safety data, the overhang is likely to persist. 

Syfovre safety reports will require further investigation. The analyst says Zimura's potential entry from Iveric Bio/Astellas 8/ also changes the calculus on a Syfovre prescribing decision for GA patients/ physicians. 

Given the changes in protocols and consent processes for Syfovre, the analyst foresees a subdued launch pattern. Consequently, Wedbush adjusted predictions to a "bear" scenario, which includes a modest double-digit market share in the U.S. and a comparable uptake in markets outside the U.S. by FY31.

Price Action: APLS shares are down 14.70% at $34.56 on the last check Thursday.