Apellis Pharmaceuticals (APLS) has drawn fresh attention after reporting preliminary 2025 U.S. net product revenue of about US$689 million, led by demand for SYFOVRE, along with early EMPAVELI uptake and new pipeline updates.

Despite the revenue update and ongoing work on SYFOVRE and EMPAVELI, Apellis’ share price has come under pressure, with a 30 day share price return of a 15.46% decline and a 1 year total shareholder return of a 22.97% decline. This suggests recent news has not yet shifted sentiment, and momentum has been fading over a longer period.

If this kind of event driven move has you rethinking your watchlist, it could be a good moment to scan other healthcare stocks that might better fit your risk and return preferences.

With Apellis shares down sharply over 1 year and trading below the average analyst target, yet reporting US$689 million in 2025 product revenue, you have to ask: is this a mispriced opportunity, or is the market already baking in future growth?

Most Popular Narrative: 39.7% Undervalued

Against Apellis Pharmaceuticals’ last close of US$21.33, the most followed narrative points to a fair value of US$35.39 and a sizeable valuation gap built on detailed growth and profitability assumptions.

The recent FDA label expansion for EMPAVELI into rare kidney diseases (C3G and IC-MPGN), along with active plans to launch and pursue additional indications (FSGS and DGF), positions Apellis to access larger patient pools and accelerate long-term topline growth, driven by the increasing prevalence of rare and age-associated diseases. This is likely to result in higher future revenues and market diversification.

Curious what kind of revenue ramp, margin shift and future P/E multiple support that higher fair value? The narrative leans on bold earnings and profitability assumptions that go well beyond today’s numbers.

Result: Fair Value of $35.39 (UNDERVALUED)

However, this hinges on SYFOVRE avoiding prolonged flat revenues and on EMPAVELI’s renal indications scaling beyond today’s modest contribution, which could otherwise cap the upside.

Another View: Rich Multiples Versus “Cheap” Narrative

That 39.7% “undervalued” fair value of US$35.39 sits awkwardly next to where Apellis actually trades on earnings. The current P/E around 60x is almost double the estimated fair ratio of 31x and well above the US Biotechs average of 20.8x, which points to meaningful valuation risk if sentiment cools further.

If the story rests on paying 60x earnings while fair ratio work and industry peers sit closer to 20x to 30x, you need to decide whether you are comfortable backing those richer expectations or would rather wait for the numbers or the price to shift first.

Build Your Own Apellis Pharmaceuticals Narrative

If you disagree with this view or prefer to weigh the assumptions yourself, you can build a fresh Apellis story in just a few minutes. To begin, use Do it your way.

A great starting point for your Apellis Pharmaceuticals research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Apellis has sharpened your thinking, do not stop here. The real edge often comes from comparing a few different opportunities side by side.

• Spot potential turnaround candidates early by checking out these 3534 penny stocks with strong financials, which already pair smaller share prices with relatively solid underlying numbers.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.