On Monday, UBS maintained a positive stance on Apellis Pharmaceuticals (NASDAQ:APLS), with its analyst updating the company's price target following the release of fourth quarter and full-year 2023 financial results. The price target for Apellis Pharmaceuticals, traded on NASDAQ:APLS, has been increased to $89.00 from the previous $87.00, while the Buy rating remains unchanged.
The adjustment reflects an updated model that takes into account higher revenue estimates for the company's product in the United States and reduced operating expenses, aligning with the company's guidance provided during the fourth-quarter earnings call.
The analyst pointed out that the earnings call presented no significant surprises and that management's insights into the first-quarter sales trends bolstered confidence in the product's commercial launch and potential for continued revenue growth.
Apellis Pharmaceuticals operates in what is seen as a large and expanding market, estimated to be worth over $5 billion. The expectation is that the market will accommodate multiple players, especially as disease awareness and patient care improve with the availability of approved therapeutic agents.
There is also anticipation of a positive outcome from the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) re-review in the second quarter of 2024, which could provide an additional boost to the company's prospects.
Despite questions regarding the impact of a new J-code for a competing product expected on April 1, UBS suggests that the market's size can support both products. Additionally, Apellis's treatment is viewed as potentially more effective, a sentiment echoed by a retinal specialist in a December event.
The focus for Apellis Pharmaceuticals now shifts to the U.S. commercial launch of its treatment for geographic atrophy (GA), with further upside potential from Phase 3 topline data for other indications expected in mid-2024.
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