Apellis Pharmaceuticals Inc. (NASDAQ:APLS) is gaining traction in a rare kidney disease market, with early uptake of its newly approved treatment signaling a meaningful growth inflection that could reshape the company’s revenue outlook over the next several years.
Bank of America Securities (BofA) on Wednesday upgraded Apellis Pharmaceuticals, citing the company’s underappreciated C3G opportunity.
Analyst Tazeen Ahmad says the current valuation underappreciates the commercial potential of Empaveli in new rare kidney disease indications (C3G/IC‑MPGN).
In July 2025, the U.S. Food and Drug Administration approved Empaveli (pegcetacoplan) as the first treatment for C3 glomerulopathy (C3G) or primary immune complex membranoproliferative glomerulonephritis (IC-MPGN) in patients 12 years of age and older, to reduce proteinuria.
Empaveli is also approved for adults with paroxysmal nocturnal hemoglobinuria (PNH) in the U.S.
Early Commercial Performance
In the third quarter, the company reported Empaveli U.S. net product revenue of $27 million.
Since its late July approval, Apellis has recorded 267 new patient start forms for Empaveli in C3G/IC-MPGN, equating to roughly 5% penetration of the estimated ~5,000 U.S. patient market.
Management highlighted encouraging early payer traction, noting no full coverage denials so far.
Competitive Positioning and Market Dynamics
Empaveli’s broader label is driving the early uptake, including IC-MPGN, pediatric, and post-transplant patients, and what the company views as stronger efficacy compared with Novartis AG (NYSE:NVS) Fabhalta (iptacopan).
BofA models $508 million in peak U.S. sales in 2033 on 20% peak penetration, contributing $10/share to the price forecast of $28.
BofA upgraded Apellis to Buy from Neutral on the continued momentum of the Empaveli launch in C3G, which could represent further upside to the analyst’s estimates.
Syfovre Performance and Future Catalysts
Analyst Ahmad also cited that Syfovre’s geographic atrophy (GA) business was significantly affected in 2025 by the loss of charitable foundation funding.
While Apellis expects continued modest growth in 2026, approval of the Syfovre prefilled syringe, filing planned for the first half of 2026, could re-accelerate uptake.
BofA views the prefilled syringe as a near-term competitive advantage that could expand its share and, over time, help grow the overall market. The prefilled syringe impact should come in 2027, and signs of renewed momentum could represent upside to our estimates. Syfovre currently contributes $16/share to the price forecast.
APLS Price Action: Apellis Pharmaceuticals shares were up 2.37% at $21.52 at the time of publication on Wednesday, according to Benzinga Pro data.
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