Apellis remains a top pick at Baird after AstraZeneca/Alexion deal

 

• The drug portfolio of Alexion Pharmaceuticals (NASDAQ:ALXN) is led by C5-inhibitors: Ultomiris (ALXN1210/ravulizumab-cwvz) and Soliris (eculizumab). In the wake of its proposed merger with AstraZeneca (NASDAQ:AZN), even clinical-stage biopharmaceutical companies focused on complement-mediated therapies have gained attention.
• With a price target of $70, Baird reiterates its “outperform’ rating on Apellis Pharmaceuticals (NASDAQ:APLS) as it highlights the ‘long-term value’ of the company’s C3-mediated experimental therapy, pegcetacoplan (APL-2). The shares jumped +8.8% today.
• Apellis have partnered with Swedish Orphan Biovitrum (OTCPK:BIOVF) in developing pegcetacoplan, currently undergoing a Phase 3 study against paroxysmal nocturnal hemoglobinuria. The experimental therapy is being reviewed by the EUA and with a Priority Review designation, the FDA has set May 14, 2021, as the target action date.
• Doing a back of the envelope calculation, Baird projects $2.4B of value for pegcetacoplan in PNH, and along with $1B of cash, ‘the PNH franchise alone will constitute the vast majority of APLS' $3.6B market cap,’ the analysts argue.
• ‘With additional systemic pegcetacoplan indications (CAD, HSCT-TMA, C3G, and ALS) and pegcetacoplan in ophthalmology mega-market GA all serving as free call options,’ the note ‘reiterates APLS as one the top smid-cap ideas in 2021.’
• https://seekingalpha.com/news/3644229-apellis-remains-top-pick-baird-after-astrazeneca-alexion-deal