Apellis Pharmaceuticals Reports $166.8 Million Revenue in Q1 2025, Net Loss Widens

Apellis Pharmaceuticals, Inc. reported a total revenue of $166.8 million for the first quarter of 2025, a decrease of 3% from $172.3 million in the same period of 2024. The decline was primarily driven by an 8% drop in product revenue, which fell to $149.9 million from $163.1 million year-over-year. This decrease was attributed to increased rebates and competitive pressures affecting sales of EMPAVELI and SYFOVRE, the company's two marketed products. However, licensing and other revenue saw a significant increase of 83%, rising to $16.9 million, largely due to higher product supply revenues from collaboration with Swedish Orphan Biovitrum AB (Sobi).

Operating expenses for the quarter increased by 7% to $250.1 million, compared to $234.4 million in the prior year. The cost of sales surged by 70% to $34.4 million, reflecting higher volumes supplied to Sobi and increased expenses related to excess and obsolete inventory. Research and development expenses rose slightly by 2% to $86.4 million, while selling, general, and administrative expenses remained relatively stable at $129.3 million. The net operating loss widened to $83.3 million from $62.1 million in the previous year, contributing to a net loss of $92.2 million for the quarter, compared to a loss of $66.4 million in Q1 2024.

In terms of operational developments, Apellis continues to focus on the commercialization of SYFOVRE, which was launched in March 2023. The company reported net product revenue from SYFOVRE of $130.2 million for the first quarter of 2025, down from $137.5 million in the same quarter of 2024. Meanwhile, EMPAVELI generated $19.7 million in revenue, a decrease from $25.6 million year-over-year. The company is also pursuing additional indications for EMPAVELI, including C3 glomerulopathy and primary immune complex membranoproliferative glomerulonephritis, with a supplemental new drug application submitted to the FDA in early 2025.

As of March 31, 2025, Apellis had cash and cash equivalents of $358.4 million, down from $411.3 million at the end of 2024. The company believes this liquidity, combined with anticipated revenues from EMPAVELI and SYFOVRE, will be sufficient to fund operations for at least the next twelve months. Looking ahead, Apellis plans to continue investing in its commercial infrastructure and product development, with expectations of ongoing net operating losses as it navigates the complexities of the biopharmaceutical market. The company is also exploring international expansion opportunities for SYFOVRE, including a recent approval in Australia.