Apellis stock rises after $300 million royalty deal with Sobi
Investing.com -- Apellis Pharmaceuticals Inc (NASDAQ:APLS) stock rose 3.2% after the company announced a royalty agreement with Sobi that could bring in up to $300 million in non-dilutive funding.
Under the deal, Apellis will receive $275 million upfront in exchange for 90% of its future ex-U.S. royalties for Aspaveli (systemic pegcetacoplan), with potential for an additional $25 million in milestone payments tied to European regulatory approvals for C3G and IC-MPGN indications. The agreement includes performance-based caps, after which all ex-U.S. royalties would revert to Apellis.
The transaction allows Apellis to maintain its exclusive U.S. commercialization rights for the drug, which is marketed as EMPAVELI in the United States. The company is eligible for tiered royalties on ex-U.S. sales ranging from high teens to high twenties percentage points under the companies’ 2020 collaboration agreement.
"This transaction reflects our shared conviction in the potential of Aspaveli/EMPAVELI to transform the treatment landscape for patients with rare diseases," said Timothy Sullivan, chief financial officer at Apellis, noting that the funding "provides significant operational flexibility" as the company approaches sustainable profitability.
Aspaveli/EMPAVELI is currently approved in the U.S., European Union, and other global markets for treating paroxysmal nocturnal hemoglobinuria (PNH), a rare blood disorder. The drug is under regulatory review in both the EU and U.S. for treating C3 glomerulopathy and primary immune complex membranoproliferative glomerulonephritis, with a CHMP opinion expected before year-end in Europe and a PDUFA date of July 28, 2025, in the U.S.
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