Apellis Pharmaceuticals (APLS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $200M, driven by SYFOVRE and EMPAVELI, with SYFOVRE maintaining U.S. GA market leadership and over 330,000 injections administered.

• EMPAVELI delivered $24.5M in U.S. net product sales in Q2, with a 97% compliance rate and continued strong performance in PNH.

• Net loss narrowed to $37.7M in Q2 2024 from $122.0M in Q2 2023, reflecting improved operating leverage.

• The company eliminated $366M in future payments by extinguishing its SFJ development liability, strengthening the balance sheet.

• Advancing pipeline with Phase 3 VALIANT trial for C3G/IC-MPGN, topline results expected in August 2024.

Financial highlights

• Q2 2024 total revenue was $199.7M, up from $95M in Q2 2023; six-month revenue reached $372M, up 166%.

• SYFOVRE U.S. net product sales were $154.6M, up from $67.3M year-over-year.

• EMPAVELI U.S. net product sales were $24.5M, compared to $22.3M in Q2 2023.

• Net loss for the quarter was $37.7M, with cost of sales at $23.1M, R&D expenses at $77.9M, and SG&A at $128.1M.

• Gross margin remained strong, with cost of sales at 13% of total revenue in Q2 2024.

Outlook and guidance

• Cash and cash equivalents of $360.1M as of June 30, 2024, expected to fund operations for at least the next 12 months.

• Expects continued strong growth for SYFOVRE, with demand accelerating into July and the remainder of the year.

• Awaiting CHMP re-examination for SYFOVRE in Europe, with a final opinion expected in Q4 2024.

• No revenue guidance for SYFOVRE for the remainder of 2024; reconsideration for 2025 is possible.

• Plans to report Phase 3 VALIANT trial data for systemic pegcetacoplan in IC-MPGN and C3G in August 2024.