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Why Is Apellis Pharmaceuticals, Inc. (APLS) Down 3.8% Since Last Earnings Report?

It has been about a month since the last earnings report for Apellis Pharmaceuticals, Inc. (APLS). Shares have lost about 3.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Apellis Pharmaceuticals, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Apellis Reports Wider Loss in Q2

The loss per share in the second quarter of 2020 was $1.57,wider than the year-ago quarter’ loss of $1.12 per share.

With no approved drug in its portfolio, the company does not generate any revenue from the sale of products.

Quarter in Detail

Research and development (R&D) expenses were $87.1 million in the second quarter of 2020, compared to $50.6 million for the same period in 2019.

General and administrative expenses were $28.4 million in the second quarter of 2020 compared to $12.8 million for the same period in 2019. 

Pipeline Update

Apellis plans to submit a new drug application (NDA) to the FDA and a marketing authorization application (MAA) to the European Medicines Agency (EMA) for pegcetacoplan for the treatment of PNH in the second half of 2020.

The company also expects to report 48-week top-line results from the PEGASUS study by the end of 2020.

Apellis plans to disclose the strategy and timing for further clinical development of pegcetacoplan for patients with cold agglutinin disease (CAD) and C3 glomerulopathy (C3G) in the third quarter of 2020.

In May 2020, Apellis announced that it had initiated a phase I/II study of APL-9 in COVID-19 patients with respiratory failure including acute respiratory distress syndrome (ARDS). An independent data monitoring committee (DMC) reviewed safety data from the first six patients who received open-label APL-9 and recommended that the study continue. Apellis is now enrolling an additional 60 patients into the randomized, double-blind, controlled part of the study.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -12.66% due to these changes.

VGM Scores

Currently, Apellis Pharmaceuticals, Inc. has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Apellis Pharmaceuticals, Inc. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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