Apellis Pharmaceuticals Reports 78% Revenue Growth, Improved Financials in Latest Quarter

Apellis Pharmaceuticals, Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $196.8 million for the three months ended September 30, 2024, a substantial increase of 78% compared to $110.4 million for the same period in 2023. This growth was driven primarily by product revenue, which reached $176.6 million, up from $99.2 million year-over-year, reflecting a 78% increase. For the nine months ended September 30, 2024, total revenue was $568.8 million, a 127% increase from $250.2 million in the prior year.

The company's key products, EMPAVELI and SYFOVRE, contributed significantly to this revenue surge. For the three months ended September 30, 2024, EMPAVELI generated $24.6 million, while SYFOVRE accounted for $151.9 million. For the nine-month period, EMPAVELI brought in $74.7 million and SYFOVRE $444.0 million. The increase in SYFOVRE sales is attributed to its growing market presence following its FDA approval in February 2023.

Despite the revenue growth, Apellis reported a net loss of $57.4 million for the third quarter of 2024, an improvement from a net loss of $140.2 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $161.5 million, down from $440.1 million in the previous year. The net operating loss for the third quarter also improved to $(47.3) million from $(137.1) million year-over-year.

The company’s cash and cash equivalents increased to $396.9 million as of September 30, 2024, compared to $351.2 million at the end of 2023. This increase is attributed to proceeds from a credit facility and improved cash flow from operations. Notably, Apellis entered into a Sixth Street Financing Agreement in May 2024, securing a senior secured term loan facility of up to $475 million, with an initial draw of $375 million used to pay off previous obligations.

Research and development expenses for the third quarter were $88.6 million, reflecting a 12% increase from the prior year, while selling, general, and administrative expenses decreased by 16% to $122 million, indicating cost management efforts. The company also reported a significant reduction in net cash used in operating activities, which fell to $107.2 million for the nine months ended September 30, 2024, from $496.9 million in the same period in 2023.

Overall, Apellis Pharmaceuticals is positioned for continued growth, driven by its expanding product portfolio and strategic financial management, despite ongoing net losses and significant accumulated deficits.