Apellis Pharmaceuticals Reports $178.5M Revenue in Q2 2025, Faces 11% Decline

Apellis Pharmaceuticals, Inc. reported a total revenue of $178.5 million for the second quarter of 2025, a decrease of 11% compared to $199.7 million in the same period of 2024. The decline was primarily driven by a 4% drop in product revenue, which totaled $171.4 million, down from $179.1 million year-over-year. The company attributed this decrease to increased rebates and competitive pressures affecting sales of its products, EMPAVELI and SYFOVRE. For the first half of 2025, total revenue was $345.3 million, down from $372.0 million in the prior year, reflecting a 7% decline.

Operating expenses for the second quarter of 2025 were $211.8 million, an 8% decrease from $229.1 million in the same quarter of 2024. This reduction was largely due to lower costs of sales and a decrease in research and development expenses, which fell to $67.0 million from $77.9 million. Despite the decrease in expenses, the company reported a net loss of $42.2 million for the quarter, compared to a loss of $37.7 million in the prior year, indicating a 12% increase in losses.

In terms of strategic developments, Apellis announced the FDA approval of EMPAVELI for the treatment of C3 glomerulopathy and primary immune complex membranoproliferative glomerulonephritis in July 2025. This approval is expected to expand the market for EMPAVELI, which already targets paroxysmal nocturnal hemoglobinuria. Additionally, the company entered into a Royalty Buy-Down Agreement with Sobi, which included an upfront payment of $275 million and a reduction in Sobi's royalty obligations by 90%, subject to performance caps.

Operationally, Apellis reported a decrease in accounts receivable, which fell to $214.1 million as of June 30, 2025, from $264.9 million at the end of 2024. The company also noted an increase in inventory levels, which rose to $121.0 million from $81.4 million, reflecting preparations for anticipated product demand. The employee headcount remained stable, with no significant changes reported in staffing levels.

Looking ahead, Apellis anticipates continued investment in the commercialization of EMPAVELI and SYFOVRE, as well as ongoing clinical trials for its product candidates. The company expects that its current cash and cash equivalents, totaling $370.0 million as of June 30, 2025, along with anticipated revenues from product sales, will be sufficient to fund operations for at least the next twelve months. However, the company acknowledges the potential need for additional capital resources to support its long-term growth and operational plans.