Investing.com - Morgan Stanley raised its price target on Apellis Pharmaceuticals (NASDAQ:APLS) to $41.00 from $25.00 while maintaining an Equalweight rating.
Apellis and Biogen announced a definitive agreement under which Biogen will acquire all outstanding Apellis shares for $41 per share in cash upfront, or approximately $5.6 billion, plus a contingent value right. The upfront payment represents an 86% premium to the 90-day volume-weighted average price of Apellis shares. The stock jumped to $40.28 from a previous close of $16.97, now trading near its 52-week high, according to InvestingPro data.
Biogen said Apellis' portfolio is expected to enhance its short- and long-term revenue growth profile while accelerating commercial readiness for felzartamab, currently in Phase 3 studies for three kidney indications. Biogen's experience in immunology and rare disease could help maximize the potential of Syfovre and Empaveli.
The transaction is expected to be accretive to Biogen's non-GAAP diluted earnings per share starting in 2027 and is expected to meaningfully increase non-GAAP EPS compound annual growth rate through the end of the decade. Biogen anticipates mid-to-high teens revenue growth for Empaveli and Syfovre through 2028.
The analyst noted the upfront payment reflects anticipated synergies stemming from the deal. For deeper insights into Apellis' financial health and comprehensive analysis, investors can access the company's detailed Pro Research Report, available exclusively on InvestingPro alongside reports for 1,400+ other US equities.
In other recent news, Biogen announced its intention to acquire Apellis Pharmaceuticals for approximately $5.6 billion, or $41 per share, with potential additional payments of up to $4 per share. This acquisition has prompted Barclays to raise its price target for Apellis to $41 from $24, citing a significant acquisition premium. Barclays noted that the implied enterprise value is about 6.4 times its estimated 2026 revenues and 3.8 times its 2030 projections. Meanwhile, Wolfe Research maintained a Peerperform rating on Apellis following the acquisition announcement.
Cantor Fitzgerald adjusted its price target for Apellis to $31 from $35, maintaining an Overweight rating after revising its financial model based on consultations with the company. Roth/MKM initiated coverage on Apellis with a Buy rating and a price target of $31, highlighting strong demand for the drug SYFOVRE, with injection volumes increasing 17% year-over-year in fiscal 2025. Roth/MKM also pointed to a resolving free goods overhang and positive outlook from key opinion leaders as factors supporting their rating. These developments reflect significant activity and interest in Apellis Pharmaceuticals from both analysts and industry players.
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