Apellis Pharmaceuticals Inc (NASDAQ:APLS) saw its shares increase by 3.2% following the announcement of a significant royalty agreement with Sobi that could generate up to $300 million in non-dilutive capital.
As part of the deal, Apellis will receive $275 million upfront in exchange for 90% of its future ex-U.S. royalties on Aspaveli (systemic pegcetacoplan). Additionally, the agreement includes potential milestone payments of up to $25 million tied to European regulatory approvals for treating C3 glomerulopathy (C3G) and immune complex membranoproliferative glomerulonephritis (IC-MPGN). The contract also features performance-based caps, after which all future ex-U.S. royalties will return fully to Apellis.
Importantly, the company retains exclusive commercialization rights for Aspaveli in the U.S., where it is sold under the brand name EMPAVELI. Apellis remains eligible for tiered royalties on ex-U.S. sales, ranging from the high teens to high twenties percentages, according to the 2020 collaboration agreement between the two companies.
“This transaction reflects our shared conviction in the potential of Aspaveli/EMPAVELI to transform the treatment landscape for patients with rare diseases,” stated Timothy Sullivan, Apellis’ chief financial officer. He also emphasized that the deal “provides significant operational flexibility” as the company moves closer to sustainable profitability.
Aspaveli/EMPAVELI has received approval in the U.S., European Union, and various international markets for the treatment of paroxysmal nocturnal hemoglobinuria (PNH), a rare blood disorder. The drug is currently under regulatory review in both the EU and U.S. for the indications C3 glomerulopathy and primary immune complex membranoproliferative glomerulonephritis, with a Committee for Medicinal Products for Human Use (CHMP) opinion expected in Europe by year-end and a PDUFA date set for July 28, 2025, in the U.S.