The past week was very eventful for biotech Apellis Pharmaceuticals (APLS -1.22%). Following news of a crucial regulatory nod last Friday afternoon, the company has since reported earnings and announced a new round of capital raising. Investors took all of this positively, and as a result the company's share price shot 20% higher this week, according to data compiled by S&P Global Market Intelligence.
That nod was provided by the U.S. Food and Drug Administration (FDA), which granted approval for Apellis' SYFVORE. This, the company isn't hesitant to point out, makes SYFVORE the first FDA-approved treatment for geographic atrophy secondary to age-related macular degeneration, a relatively common eye disorder frequently suffered by older people.
This was closely followed by Apellis' release of its fourth-quarter and full-year 2022 results. The quarter saw the biotech earn $22.6 million, which was down from the year-ago tally of $60.3 million. Net loss deepened but not drastically, landing at almost $166 million ($1.50 per share) against the fourth-quarter 2021 deficit of $148 million. On average, analysts were projecting $24.3 million in revenue and $1.51 per share for net loss.
Finally, Apellis on Thursday said it would float just over 3.17 million shares of its common stock in a public offering at a price of $63 per share. Interested parties can opt to purchase pre-funded warrants for that price minus a fraction of $0.01; up to slightly more than 2.38 million shares will be made available in this manner. The offering should close on Monday, Feb. 27.
In its regulatory filing on the stock/warrant issue, Apellis said it expects to raise between $333 million and $383 million in funding. This is to be utilized to support the commercialization efforts of SYFVORE and its other approved drug, Empaveli, which treats a rare blood disorder called paroxysmal nocturnal hemoglobinuria (PNH).
The monies will also be channeled into other research efforts, plus "working capital and other general corporate purposes."