The biopharmaceutical company Apellis Pharmaceuticals (NASDAQ: APLS) has found itself in a difficult position after one of the company’s recently launched drugs got confirmed to show side effects. Following the news, APLS stock saw a drop on Monday and it continued sliding down further the next day after Apellis’ confirmation. 

Bloomberg reported that the American Society of Retina Specialists sent its members a memo noting the issue of retinal vasculitis to six people. The memo which circulated through a report also noted that those who experienced inflammation in eyes had consumed the eye drug of Apellis Pharmaceuticals, Syfovre. Following the news, the value of APLS stock tanked about 38% on Monday. 

On Tuesday, Apellis confirmed the cases with the United States Securities and Exchange Commission (SEC) in a filing. This further led the APLS stock price to continue the fall losing up to another 25%. 

Apellis Pharmaceuticals stock price lost over 50% of its value collectively in the last two days. Overall, the company has lost $5.2 Billion of its market value due to the recent fall. 

Surprisingly, the same drug intended to treat geographic atrophy (GA), Syfovre, acted to push APLS stock price at the level until last week. The drug got approval from the Food and Drug Administration (FDA) in February this year. 

Syfovre was first of its kind to get approval for its therapy for geographic atrophy which came as an achievement for Apellis. 

Apellis Pharmaceuticals (APLS) Stock Price Movement

APLS stock was trading at $84 on Friday, July 14, 2023 prior to the fall. At present, the stock price is at $40, shredding a value of more than 50%. The significant drop in its price came in the wake of panic selling following the news. 

The steep freefall of Apellis Pharmaceuticals stock price showed up abruptly. Earlier this week, the stock price took place among the Nasdaq Biotech Index top performers. Prior to the price drop, APLS stock price was moving in an uptrend and was up by over 60%, since the start of 2023.

Considering that the APLS stock price drop halts and tries to reverse, giving a sharp rise, it might not continue given the inability to gain momentum. It could try to gain the $50 price level back but is unlikely to gain strength. In case of stability around the current levels, it could experience consolidation within the range of $30 to $50. 

MACD is currently sloping down and indicating the negative crossover which is likely to take place down the line, a strong bearish move. RSI is at 12 suggesting that the APLS stock entered the highly oversold zone. If the stock price continues the decline, then it is likely to take support at $27. 

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