Apellis Pharmaceuticals Reports Second Quarter 2025 Financial Results

Core Insights - Apellis Pharmaceuticals reported strong second quarter 2025 financial results, highlighting the FDA approval of EMPAVELI for C3 glomerulopathy (C3G) and primary immune complex membranoproliferative glomerulonephritis (IC-MPGN) as a significant milestone in their product portfolio [2][5][6] Financial Performance - Total revenue for Q2 2025 was $178.5 million, a decrease from $199.7 million in Q2 2024, driven by lower EMPAVELI sales [10] - U.S. net product sales included $151 million from SYFOVRE and $20.8 million from EMPAVELI, with licensing and other revenue contributing $7.1 million [10] - Cost of sales decreased to $13.6 million from $23.1 million year-over-year, attributed to lower product volumes supplied to Sobi and reduced expenses related to obsolete inventory [11] - R&D expenses were $67 million, down from $78 million in the same period last year, reflecting lower external costs and personnel expenses [14] - SG&A expenses increased to $131.1 million from $128.1 million, primarily due to higher office and travel expenses [15] - The net loss for Q2 2025 was $42.2 million, compared to a net loss of $37.7 million in Q2 2024 [16] Product Developments - EMPAVELI is the first FDA-approved treatment for C3G and primary IC-MPGN, showing a 68% reduction in proteinuria and stabilization of kidney function in clinical trials [6][20] - SYFOVRE continues to lead the market in geographic atrophy (GA) with a 55% share of new patient starts and total market share exceeding 60% [5][10] - The company is on track to initiate pivotal studies for delayed graft function (DGF) and focal segmental glomerulosclerosis (FSGS) in the second half of 2025 [6] Strategic Partnerships - Apellis entered a capped royalty purchase agreement with Sobi, allowing the company to receive up to $300 million for 90% of future ex-U.S. royalties for Aspaveli [5][13] - Sobi anticipates an opinion from the European Medicines Agency regarding Aspaveli's indication extension application by the end of 2025 [6] Cash Position - As of June 30, 2025, Apellis had $370 million in cash and cash equivalents, down from $411.3 million at the end of 2024, with expectations that current cash and future revenues will support operations until profitability [17]