Apellis Pharmaceuticals is in talks with drugmakers, sources say

People with knowledge of the matter said that Apellis Pharmaceuticals Inc., a biotech firm focused on rare diseases and ophthalmology, is drawing takeover interest from larger drugmakers.

The company is talking to advisers to consider its options amid interest, they said. Apellis may consider seeking partnerships or licensing agreements for some of its ophthalmology products, but they won't be identified as discussing confidential information, the people said.

In New York this year, Apellis' shares have gone up about 28%, giving it a market value of $7.6 billion. The stock was up by 12% in premarket trading on Monday.

There is no certainty that the deliberations will lead to a transaction, the people said. Two of the people said that the company prefers to stay independent. A Waltham, Massachusetts-based Apellis representative didn't respond to requests for comment.

In February, Apellis received approval from the US Food and Drug Administration for its treatment for an advanced eye disorder that is a leading cause of blindness. The drug, Syfovre, is the first to be approved by the FDA for the treatment of geographic atrophy, and is projected to generate peak revenue of more than $1 billion, according to analyst estimates.

A teaming up with another pharmaceutical company would give Apellis access to more resources and infrastructure to market and distribute Syfovre to US patients. The FDA will rule on the approval for another geographic atrophy drug by August, as the company has some competition in smaller rival Iveric Bio Inc.

Apellis also won FDA approval for Empaveli, an injection for rare blood disease, in 2021.

In March, Pfizer Inc. agreed to buy cancer-drug maker Seagen Inc. for $43 billion, a deal that it hopes will contribute more than $10 billion in risk-adjusted revenue by the year 2030. In December, Amgen Inc. struck a $27.8 billion deal for the autoimmune disease drugmaker Horizon Therapeutics Plc in a bid to boost sales.

Health-care dealmaking has remained relatively robust despite the drop-off in global mergers and acquisitions activity this year. Deal values in the sector are down just 14% year-on- year, compared to the broader 50% slump in all industries, according to the data compiled by Bloomberg.

People familiar with the matter said last month that BridgeBio Pharma Inc., which develops treatments for genetic diseases, is also attracting interest from larger drug companies. According to a Bloomberg News report, Egetis Therapeutics AB, a Swedish developer of rare disease treatments, has been holding talks about a potential sale.