a website banner telling users to subscribe to it's newsletter

Bloomberg: Big Pharma Companies Eyeing Apellis for Acquisition

April 04, 2023

Apellis Pharmaceuticals has become the subject of takeover interest amid a recent wave of M&A deals in the biopharma industry, according to a Bloomberg report.

The company is reportedly in talks with advisors to assess its options and may consider partnerships or licensing agreements. However, despite the interest, a buyout is not guaranteed, as two sources told Bloomberg that the company would prefer to remain independent.

Larger pharmaceutical companies frequently opt to acquire smaller firms that have marketed products as a means of generating additional revenue streams, thereby reducing the reliance on their blockbuster drugs. Such acquisitions also assist these companies in mitigating the impact of patent expirations on their drugs.

Apellis currently has two products approved in its pipeline, namely Empaveli and Syfovre. In May 2021, the company received FDA approval for Empaveli, a targeted C3 therapy, as a monotherapy treatment for adult patients suffering from PNH, a rare blood disorder. This marked the first FDA approval for any of the company's products. Empaveli is also approved for the same indication in the European Union.

In February 2023, the FDA approved Apellis' second drug, Syfovre (pegcetacoplan injection), making it the first and only treatment for geographic atrophy (GA) secondary to age-related macular degeneration. Additionally, in December 2022, the company submitted a marketing authorization application to the European Medicines Agency (EMA) for intravitreal pegcetacoplan to treat GA, which is currently under review by the EMA with a decision expected in early 2024.

The company began launching Syfovre in the United States in March of this year. Analysts have estimated that the drug could potentially generate over $1 billion in peak revenue.

Shares of Apellis have experienced a year-to-date increase of approximately 28% in New York, resulting in a market capitalization of $7.6 billion. On Monday, April 3, the stock surged by as much as 12% in pre-market trading.

Apellis did not comment on the matter at the time of publication.