Core Insights - RTW Investments initiated a new stake in Apellis Pharmaceuticals by acquiring 7,666,764 shares in the fourth quarter of 2025, valued at $192.59 million as of the quarter-end [2][6]. Company Overview - Apellis Pharmaceuticals is a commercial-stage biotechnology company focused on innovative therapies for complement-driven diseases, with a robust pipeline and growing commercial portfolio [5]. - The company generated approximately $689 million in product revenue last year, primarily from its flagship therapy, which accounted for about $587 million, and an additional $102 million from its second product [7][8]. - As of the latest data, Apellis has a revenue of $1 billion and a net income of $22.4 million, with a market capitalization of $2.2 billion [4]. Investment Implications - The investment by RTW Investments represents a calculated pivot towards more durable revenue streams, as Apellis accounts for 1.93% of the fund's 13F reportable assets under management (AUM) as of December 31, 2025 [7][10]. - Despite a 29% decline in Apellis shares over the past year, the company shows signs of real demand and expanding market share in the rare disease markets, which may attract disciplined biotech investors [6][9].

Core Insights - The company is focusing on building a strong foundation for future growth, emphasizing the importance of the current year for its strategic development [1] - The organization has established three main pillars, with a focus on providing a best-in-class therapy for patients with geographic atrophy through SYFOVRE [1] - There is an ongoing developmental program that combines a subcutaneous siRNA against C3 with intravitreal injection of SYFOVRE, with data readouts expected next year [1] Product Launch and Market Penetration - The company is in the midst of an exciting launch for EMPAVELI, achieving over 5% market penetration in Q4 among an estimated 5,000 patients with C3G and IC-MPGN [2]

Summary of Apellis Pharmaceuticals FY Conference Call Company Overview - **Company**: Apellis Pharmaceuticals (NasdaqGS:APLS) - **Key Products**: SYFOVRE and EMPAVELI - **Focus Areas**: Geographic atrophy, C3G, IC-MPGN, and gene editing programs Core Points and Arguments Business Strategy and Strengths - Apellis has established a strong foundation with three main pillars: SYFOVRE, EMPAVELI, and a gene editing program in collaboration with Beam [2][4] - SYFOVRE is positioned as a best-in-class therapy for geographic atrophy, with ongoing development of a combination therapy using siRNA against C3 [2] - EMPAVELI is experiencing a strong launch, with over 5% penetration in the C3G and IC-MPGN market, targeting a potential 50% penetration at peak [3][6][35] Revenue Performance - Revenue declined year-over-year due to unique factors, including flat revenue from EMPAVELI's initial indication (PNH) and challenges faced by SYFOVRE [5][10] - The decline was attributed to the loss of patient co-pay assistance, leading to treatment discontinuation and a shift to less effective therapies [7][8] - Despite these challenges, there was a 17% growth in injections for geographic atrophy, indicating underlying demand [9] Market Dynamics - SYFOVRE's market share has remained stable at approximately 60%, with a 50/50 split for new patient enrollments [18] - The introduction of a prefilled syringe is expected to enhance market penetration and ease of administration [14] - The retina community is increasingly recognizing the importance of SYFOVRE, especially with new data showing significant benefits for patients [13] Competitive Landscape - Apellis believes SYFOVRE has a superior efficacy profile compared to competitors, supported by robust data from clinical trials [20][21] - EMPAVELI is the only product approved for pediatric use and post-transplant patients, differentiating it from competitors [31] - Safety profile of EMPAVELI is strong, with no cases of encapsulated meningococcal infection reported despite expectations based on class effects [32] Future Outlook - Apellis aims to achieve profitability with a solid cash position of $466 million, bolstered by expected milestone payments [44] - The company projects significant revenue growth, with expectations of reaching $1.7 billion by 2030 [47] - Upcoming data readouts from clinical trials, particularly for the gene editing program, are anticipated to drive future growth [42] Additional Important Insights - The company is focused on redefining treatment for geographic atrophy and addressing the unmet needs in the wet AMD market, which is valued at $12 billion [26] - The potential for EMPAVELI in FSGS and DGF is significant, with a combined epidemiology of approximately 33,000 patients in the U.S. [35][36] - The company is committed to continuous improvement in patient treatment experiences and outcomes, leveraging innovative technologies like functional OCT [15][16] This summary encapsulates the key points discussed during the Apellis Pharmaceuticals FY Conference Call, highlighting the company's strategic direction, market performance, and future growth potential.

Management characterizes 2025 as a foundational year of disciplined execution, focusing on the central role of C3 inhibition to address complement-driven diseases across ophthalmology and nephrology. SYFOVRE performance in geographic atrophy (GA) is described as resilient, with 17% year-over-year growth in total injections despite revenue being impacted by elevated free goods utilization. The EMPAVELI launch in C3G and primary IC-MPGN is cited as a primary near-term growth engine, achieving over 5% ma ...

Core Insights - Apellis Pharmaceuticals reported a revenue of $199.91 million for the quarter ended December 2025, which is a decrease of 5.9% compared to the same period last year [1] - The company's EPS was $0.47, a significant improvement from -$0.29 in the year-ago quarter, indicating a positive earnings surprise of +219.14% against a consensus estimate of -$0.40 [1] Revenue Breakdown - Product revenue, net was $190.34 million, slightly above the average estimate of $187.07 million by nine analysts, representing a year-over-year change of -0.4% [4] - Licensing and other revenue amounted to $9.57 million, exceeding the nine-analyst average estimate of $7.31 million, but showing a significant year-over-year decline of -55.2% [4] - Product Revenue from EMPAVELI was reported at $35.1 million, surpassing the eight-analyst average estimate of $28.51 million, reflecting a year-over-year increase of +50.3% [4] - Product Revenue from SYFOVRE was $155.2 million, slightly above the eight-analyst average estimate of $154.18 million, but down by -7.5% compared to the previous year [4] Stock Performance - Over the past month, shares of Apellis Pharmaceuticals have returned +2.2%, contrasting with a -1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

February 24, 2026 Forward-looking statements Statements in this presentation about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar ...

Core Insights - Apellis Pharmaceuticals (APLS) received FDA approval for EMPAVELI targeting C3 glomerulopathy and IC-MPGN, with the stock trading around $28 at the time of approval [1] Company Summary - The FDA approval of EMPAVELI marks a significant milestone for Apellis Pharmaceuticals, potentially impacting its market position and stock performance [1]

Core Insights - Apellis Pharmaceuticals' stock has decreased by 31% over the past year despite receiving FDA approval for EMPAVELI, indicating a disconnect between regulatory success and commercial performance [2][7] Product Approval and Market Potential - EMPAVELI is the first and only approved treatment for C3 glomerulopathy and IC-MPGN, targeting approximately 5,000 patients in the U.S., with exclusive approval for about two-thirds of this population [3] - The positive opinion from the European CHMP in December 2025 enhances the global expansion potential and pricing power, typically associated with gross margins exceeding 90% [3] Patient Start Forms and Growth Expectations - Management has guided for 225 cumulative patient start forms by the end of 2025, having achieved 152 by the end of September, suggesting a slowdown to 24 forms per month in Q4 [4] - CEO Cedric Francois indicated that the company is moving past the initial wave of early adopters and anticipates steady growth moving into the next year [4] Revenue Challenges and Market Dynamics - SYFOVRE, which constitutes the majority of revenue, reported flat sales of $151 million in Q3 2025, with a mere 4% growth in injections, primarily driven by free goods costing the company $15 million [5] - The share of new patients for SYFOVRE has decreased to 52%, with management noting that retina specialists are adopting a cautious approach despite SYFOVRE's 60% market share [5] External Market Issues - The cessation of new co-pay assistance applications by Good Days Foundation has led to practices halting new patient enrollments, a challenge not unique to Apellis but reflective of broader issues in the geographic atrophy market [6]

Core Insights - Apellis is focused on the complement pathways, particularly complement factor C3, which allows exploration of various therapeutic options across multiple areas [1] - The company is currently self-funded and has identified growth drivers for both the near and long term [2] Company Overview - Apellis has established a foundation around its products SYFOVRE and EMPAVELI, which are expected to support its future pipeline [2] - SYFOVRE is generating a steady and durable revenue stream that aligns with the company's long-term growth ambitions [2]

2 Transforming innovation into durable value creation Apellis: The Leading Complement Company 44th Annual J.P. Morgan Healthcare Conference Cedric Francois, M.D., Ph.D. Co-Founder, Chief Executive Officer and President January 12, 2026 ARCHER Living with C3G Forward-looking statements Statements in this presentation about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of ...