Citi mentioned it believes the sell-off in Apellis Prescription drugs (NASDAQ:APLS) shares following the corporate’s Q1 earnings report is “overdone.”
The funding financial institution mentioned Q1 gross sales of Apellis’s drug Syfovre beat the consensus estimate, however that “it seems the purchase facet anticipated extra than an roughly 20% quarter-over-quarter bump, even given Q1 headwinds, to offset aggressive considerations round Izervay’s not too long ago granted everlasting J-code and certain 2H24 label growth to incorporate two-year information.”
Citi mentioned the “disparate commentary round share seize must be taken in context.” It famous that whereas Astellas “factors” to its present 25% market share ramping as much as 40%, versus Apellis’s roughly 85% share, Astellas makes use of the metric of vials distributed whereas Apellis makes use of sufferers handled.
“Word there’s a issue of two favoring Astellas’s chosen metric, given Izervay is month-to-month vs. Syfovre’s majority use on the versatile EOM schedule,” Citi mentioned.
Citi added that Syfovre was “nonetheless nicely on-pace” to succeed in round $700M in fiscal 2024, “reflecting a really robust launch.”
Shares of Apellis fell 10% Tuesday following the discharge of the corporate’s Q1 report. The inventory was down an extra 4% Wednesday afternoon.