ISEE - Apelliis weakness on Iveric Bio takeout is buying opportunity - analyst

2023-05-01 08:52:41 ET

Apellis Pharmaceuticals ( NASDAQ: APLS ) stock weakness, down 7.1% in premarket trading, is a buying opportunity after competitor Iveric Bio ( ISEE ) agreed to be sold to Astellas Pharma ( OTCPK:ALPMF ) for $5.9 billion on Sunday, according to a Citi analyst.

"While we acknowledge APLS may face some early pressure Monday (perhaps down ~10-15%), we would approach any such weakness as a solid buying opportunity," Citi analyst Yigal Nochomovitz, who has a buy rating and $88 price target on Apellis ( APLS ) wrote in a note on Monday.

Apellis ( APLS ) is weaker as some investors may see the chance of the ophthalmology biotech firm being acquired as "materially weaker" after its peer Inveric BIO ( ISEE ) agreed to be sold for $40 a share, representing a 22% premium to Iveric's closing price on Friday. Inveric ( ISEE ) jumped 16% in premarket trading on Monday.

"We also think news of the ISEE acquisition will accelerate Pharma’s interest in APLS as the only remaining independent – and notably more advanced – late-stage player in the GA space," Citi's Nochomovitz added in the note.

The news of the Iveric ( ISEE ) deal also comes after Bloomberg reported early last month that Apellis ( APLS ) had attracted takeover interest from large pharmaceutical companies. Apellis ( APLS ) shares surged 16% on April 3 amid the takeover report.

More on Apellis Pharma

• Apellis Pharmaceuticals may be worth $90-$100 a share in sale - analyst
• Apellis Pharmaceuticals Is Poised For Dominance In Geographic Atrophy Market

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