Apellis Pharmaceuticals (NASDAQ: APLS) reported a turnaround in its fourth‑quarter 2025 results, posting a net loss of $58.9 million versus a $36.4 million loss a year earlier, and a net income of $22.4 million for the full year, compared with a $197.9 million loss in 2024. The company’s non‑GAAP earnings per share for the quarter were $0.47, a beat of $0.86 against the consensus estimate of a loss of $0.39. Total revenue for the quarter was $199.9 million, slightly below the consensus estimate of $203.4 million, while full‑year revenue reached $1.0 billion, up from $781.4 million in 2024.
The revenue mix highlights a decline in the company’s flagship geographic atrophy therapy SYFOVRE, which generated $155.2 million in U.S. net product revenue in Q4 2025, down from $167.8 million a year earlier. The drop is attributed to copay‑assistance headwinds that have reduced patient starts. In contrast, EMPAVELI, the drug for rare kidney diseases, grew to $35.1 million from $23.4 million, driven by expanding indications and increased market penetration. The full‑year revenue figure also includes a one‑time $275 million payment from a royalty repurchase agreement with Sobi, which helped lift the year‑to‑date total.
Operating expenses rose modestly to $251.1 million in Q4, up from $238.7 million a year earlier, while full‑year operating expenses were $948.4 million, a slight increase from $946.3 million. Cash and cash equivalents stood at $466.2 million as of December 31 2025, up from $411.3 million at the end of 2024, giving the company a stronger liquidity position to fund its growth initiatives.
CEO Cedric Francois said the year was “a year of disciplined execution and meaningful progress across the business, and we enter 2026 with clear priorities and a strong foundation.” He emphasized a focus on positioning SYFOVRE for its next growth phase, maximizing EMPAVELI’s blockbuster opportunity in rare kidney diseases, and advancing a self‑funded pipeline that leverages the company’s expertise in C3 biology.
Market reaction to the earnings was mixed. Investors weighed the EPS beat against the revenue miss and the decline in SYFOVRE sales, which led to a modest pre‑market decline of about 1.65 %. Analysts noted that while the company’s cost discipline and product mix contributed to the earnings beat, the revenue shortfall and headwinds in its core therapy signal challenges that may temper enthusiasm for the near‑term outlook.
The results underscore a shift from a substantial loss in 2024 to profitability in 2025, bolstered by disciplined cost management and a growing EMPAVELI franchise. However, the decline in SYFOVRE revenue and the revenue miss relative to consensus highlight ongoing pricing and patient‑access challenges that the company must address to sustain growth. The strong cash position and focus on pipeline development suggest that Apellis is positioning itself for long‑term value creation, but investors will likely monitor how the company navigates the headwinds in its flagship therapy while capitalizing on the momentum in EMPAVELI.
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