AZN - Apellis remains a top pick at Baird after AstraZeneca/Alexion deal

The drug portfolio of Alexion Pharmaceuticals (ALXN) is led by C5-inhibitors: Ultomiris (ALXN1210/ravulizumab-cwvz) and Soliris (eculizumab). In the wake of its proposed merger with AstraZeneca (AZN), even clinical-stage biopharmaceutical companies focused on complement-mediated therapies have gained attention.With a price target of $70, Baird reiterates its “outperform’ rating on Apellis Pharmaceuticals (APLS) as it highlights the ‘long-term value’ of the company’s C3-mediated experimental therapy, pegcetacoplan (APL-2). The shares jumped +8.8% today.Apellis have partnered with Swedish Orphan Biovitrum (BIOVF) in developing pegcetacoplan, currently undergoing a Phase 3 study against paroxysmal nocturnal hemoglobinuria. The experimental therapy is being reviewed by the EUA and with a Priority Review designation, the FDA has set May 14, 2021, as the target action date.Doing a back of the envelope calculation, Baird projects $2.4B of value for pegcetacoplan in PNH, and along with $1B of cash, ‘the PNH franchise alone will constitute the vast majority of APLS' $3.6B market cap,’

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Apellis remains a top pick at Baird after AstraZeneca/Alexion deal