Apellis Short Bets Edge Higher As Stock Jumps 45% Since Late July Q2 Report - Retail Traders Stay Wary

Apellis Pharmaceuticals is drawing renewed attention from short sellers even as its stock extends a rebound sparked by better-than-expected bottom-line results.

Short interest as a percentage of free float rose to 21.1% last week, the highest in three weeks, after bottoming near 21% in late July, according to Ortex data compiled by The Fly. 

Days-to-cover climbed to 2.8 from 2.6, although volumes stayed heavy following the earnings release, limiting further upside pressure.

Shares gained 13.5% in the five sessions through Thursday and have now rallied 45% since July 31, when Apellis reported a second-quarter loss of $0.33 per share, narrower than analysts' expectations. 

Apellis' stock rose 0.5% on Friday to close at $27.75, its highest level in six months, extending a four-session winning streak.

Revenue of $178.5 million missed consensus by about $10 million, but investors cheered the earnings surprise along with regulatory and business updates. 

Quarterly sales were driven by $151 million from Syfovre, its treatment for geographic atrophy, and $21 million from Empaveli for paroxysmal nocturnal hemoglobinuria. Apellis also secured FDA approval of Empaveli for rare kidney diseases C3G and primary IC-MPGN, the first approved therapies for these conditions.

Additionally, Apellis signed a capped royalty deal with Sobi worth up to $300 million for ex-U.S. Aspaveli sales and ended June with $370 million in cash. 

The company said the combination of cash, the Sobi payment, and future revenues should be sufficient to fund operations to profitability.

Following the quarterly results, Goldman Sachs raised its price target to $26 from $24, citing strong quarterly execution and long-term potential across its complement-focused pipeline. 

Citi lifted its target to $46 from $41, calling Empaveli“best-in-class,” while Scotiabank raised its target to $22 on confidence in launch execution. Baird, BofA, and Morgan Stanley also issued upward revisions earlier in August, reflecting improving sentiment.

Despite the rebound, the pickup in short positioning suggests some investors expect profit-taking after the momentum-driven surge.

On Stocktwits, retail sentiment for Apellis remained 'bearish' amid 'extremely low' message volume.

Apellis' stock has declined 13% so far in 2025.

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