Core Viewpoint - Kahn Swick & Foti, LLC is investigating the proposed sale of Apellis Pharmaceuticals, Inc. to Biogen Inc. to assess the adequacy of the price and process involved in the transaction [1]. Summary by Relevant Sections - **Proposed Transaction Details** - Apellis shareholders are set to receive $41.00 per share in cash along with a nontransferable contingent value right for two additional payments of $2.00 per share, contingent on meeting specific annual global net sales thresholds for SYFOVRE [1]. - **Investigation Purpose** - The investigation aims to determine whether the proposed consideration undervalues Apellis Pharmaceuticals and whether the process leading to this valuation was adequate [1]. - **Contact Information for Investors** - Investors who believe the transaction undervalues the company can contact Kahn Swick & Foti, LLC for further discussion regarding their legal rights [2].

Core Viewpoint - Biogen Inc is acquiring Apellis Pharmaceuticals Inc for $41 per share in cash, totaling approximately $5.6 billion, with potential additional value through contingent value rights based on sales milestones for SYFOVRE [1][2]. Group 1: Acquisition Details - The acquisition includes two approved complement C3 therapies: EMPAVELI for rare kidney diseases and SYFOVRE for geographic atrophy secondary to age-related macular degeneration [2][3]. - Apellis shareholders will receive a nontransferable contingent value right (CVR) worth up to $4 per share if certain global sales milestones for SYFOVRE are achieved [1]. Group 2: Financial Implications - Jefferies expects the transaction to be non-GAAP EPS accretive starting in 2027 and anticipates Biogen will de-lever by year-end 2027 [5]. - The acquisition is projected to diversify Biogen's revenue base, potentially adding $700 million to $1 billion annually through 2028 [5][6]. Group 3: Strategic Positioning - The deal is viewed as a strategic move to strengthen Biogen's portfolio in immunology, rare disease, and nephrology, particularly supporting the development of felzartamab, which is in Phase III trials for multiple kidney diseases [3][4]. - The acquisition provides immediate revenue from the two commercialized therapies while positioning Biogen for long-term growth through pipeline opportunities [4][6]. Group 4: Market Reaction - Following the announcement, shares of Apellis surged over 135% to about $40, while Biogen's stock fell 5% to $178 [1]. Group 5: Transaction Timeline - The transaction is expected to close in the second quarter of 2026 [7].

Core Viewpoint - Ademi LLP is investigating Apellis Pharmaceuticals Inc. for potential breaches of fiduciary duty and other legal violations related to its transaction with Biogen, focusing on whether shareholders are receiving a fair price [1][4]. Transaction Details - Apellis stockholders will receive $41 per share plus a contingent value right, which includes additional payments based on the sales performance of SYFOVRE [3]. - Under the contingent value rights, shareholders could receive $2 per share if SYFOVRE achieves $1.5 billion in annual global net sales between 2027 and 2030, and another $2 per share if it reaches $2 billion in annual sales during the same period. If these thresholds are not met but SYFOVRE achieves $2 billion in sales in 2031, shareholders would receive $4 per share [3]. Board Conduct and Shareholder Rights - The transaction agreement imposes significant penalties on Apellis for accepting competing bids, which raises concerns about the board's fulfillment of fiduciary duties to all shareholders [4]. - Apellis insiders are set to receive substantial benefits as part of the change of control arrangements, further complicating the fairness of the transaction for public shareholders [4].

Group 1 - Apellis Pharmaceuticals' shares increased by 135.69 percent to $40.28 following Biogen's agreement to acquire all outstanding shares for $41.00 each, valuing the deal at approximately $5.6 billion [1] - The acquisition will include Apellis' therapies EMPAVELI and SYFOVRE, which are projected to generate combined net sales of $689 million in 2025, with expected growth in the mid-to-high teens through 2028 [3] - The stock opened at $40.39 and traded within a narrow range of $40.25 to $40.45, with a trading volume of 40.81 million shares, significantly higher than the average daily volume of 2.78 million [2] Group 2 - Apellis' 52-week stock price range is between $16.10 and $40.45 [4]

March 31, 2026 BIOGEN PROPOSED ACQUISITION OF APELLIS INVESTOR WEBCAST FORWARD-LOOKING STATEMENTS These statements speak only as of the date of this presentation and the discussions during this conference call and are based on information and estimates available to us at this time. Should known or unknown risks or uncertainties materialize or should underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected. Investors are cau ...

Core Viewpoint - Biogen Inc. has announced its acquisition of Apellis Pharmaceuticals for $41.00 per share in cash, totaling approximately $5.6 billion, which is expected to enhance Biogen's revenue growth by adding two commercialized immunology and rare disease medicines to its portfolio [1][5]. Group 1: Acquisition Details - Biogen will acquire all outstanding shares of Apellis for $41 per share, representing an 86% premium to the 90-day volume-weighted average stock price and a 35% premium to the 52-week high stock price [11]. - Apellis stockholders will receive a nontransferable contingent value right (CVR) for each share, entitling them to receive two payments of $2 per share, contingent on achieving certain annual global net sales thresholds for SYFOVRE [1][12]. - The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions and regulatory approvals [13]. Group 2: Financial Impact - The acquisition is projected to add immediate revenue from two products, EMPAVELI and SYFOVRE, which together achieved net sales of $689 million in 2025 and are expected to grow at a rate in the mid-to-high teens at least through 2028 [2][8]. - The transaction is anticipated to be increasingly accretive to Biogen's non-GAAP diluted earnings per share (EPS) starting in 2027 and is expected to significantly increase Biogen's non-GAAP EPS compounded annual growth rate (CAGR) through the end of the decade [9][5]. - Biogen plans to finance the acquisition through a combination of cash and borrowings, aiming to fully de-lever by the end of 2027 [9]. Group 3: Product Portfolio Enhancement - The addition of Apellis will enhance Biogen's growth portfolio in immunology and rare diseases, with EMPAVELI approved for rare immune-mediated kidney diseases and SYFOVRE approved for geographic atrophy secondary to age-related macular degeneration [3][5]. - Biogen believes that Apellis' established U.S. sales infrastructure will accelerate its commercial readiness for felzartamab, which is currently in Phase 3 studies for three kidney diseases [3][5]. - The combined capabilities of Biogen and Apellis are expected to maximize the potential of both EMPAVELI and SYFOVRE, further strengthening Biogen's nephrology franchise [4][5].

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.

Core Insights - The company characterizes 2025 as a foundational year focused on disciplined execution and the central role of C3 inhibition to address complement-driven diseases in ophthalmology and nephrology [1] Performance Overview - SYFOVRE shows resilient performance in geographic atrophy (GA) with a 17% year-over-year growth in total injections, despite revenue being impacted by elevated free goods utilization [1] - The launch of EMPAVELI in C3G and primary IC-MPGN is identified as a primary near-term growth engine, achieving over 5% market penetration in its first full quarter, which management claims outpaces other rare nephrology launches [1] Strategic Positioning - The strategic positioning for SYFOVRE is shifting towards 'renewed growth' in 2027, supported by the introduction of a prefilled syringe and AI-enabled functional imaging (OCT-F) to enhance practice workflow and patient visualization of benefits [1] Financial Strategy - The company emphasizes a transition towards self-funding its pipeline, supported by a growing commercial revenue base and a disciplined approach to operating expenses [1] - Management attributes the strong uptake of EMPAVELI to its status as the only approved therapy for approximately two-thirds of the targeted patient population, including pediatric and post-transplant segments [1]

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]