This New $193 Million Bet Targets a Biotech With $689 Million in Revenue and a Potential Turnaround Story

RTW Investments initiated a new stake in Apellis Pharmaceuticals (APLS 4.23%), acquiring 7,666,764 shares in the fourth quarter, according to a February 17, 2026, SEC filing.

What happened

An SEC filing dated February 17, 2026, shows RTW Investments opened a new position in Apellis Pharmaceuticals during the fourth quarter, buying 7,666,764 shares. The quarter-end value of the stake stood at $192.59 million, reflecting both the share addition and stock price factors.

What else to know

• This was a new position for RTW Investments, LP, with Apellis accounting for 1.93% of 13F reportable AUM as of December 31, 2025.
• Top holdings after the filing:
  • NASDAQ:MDGL: $1.16 billion (11.6% of AUM)
  • NASDAQ:INSM: $842.85 million (8.4% of AUM)
  • NASDAQ:PTCT: $588.42 million (5.9% of AUM)
  • NASDAQ:ARGX: $566.38 million (5.7% of AUM)
  • NASDAQ:PTGX: $441.86 million (4.4% of AUM)
• As of Friday, Apellis shares were priced at $17.21, down 29% over the past year and well underperforming the S&P 500, which is instead up about 15% in the same period.

Company overview

Company snapshot

• Apellis Pharmaceuticals develops and commercializes therapeutic compounds targeting the complement system, with key products including pegcetacoplan and EMPAVELI for autoimmune and inflammatory diseases.
• The firm generates revenue primarily through sales of proprietary biopharmaceutical products and collaborative licensing agreements.
• It serves healthcare providers and patients in markets addressing rare diseases such as geographic atrophy, paroxysmal nocturnal hemoglobinuria, and cold agglutinin disease.

Apellis Pharmaceuticals, Inc. is a commercial-stage biotechnology company focused on innovative therapies for complement-driven diseases. With a robust pipeline and a growing commercial portfolio, the company leverages its expertise in complement inhibition to address significant unmet medical needs. Apellis’s strategic collaborations and targeted approach provide a competitive advantage in the rare disease and specialty therapeutics market.

What this transaction means for investors

This is the kind of setup that tends to separate disciplined biotech investors from momentum chasers. Apellis stock performance has left much to be desired over the past year, but under the hood, there are signals that a disciplined investor might be willing to bet on.

Apellis generated roughly $689 million in product revenue last year, driven largely by its flagship therapy, which alone brought in about $587 million, alongside another $102 million from its second product. That is not early-stage speculation anymore. It is a company with real demand, expanding market share, and growing penetration in rare disease markets.

What makes this move more interesting is where it sits in the broader portfolio. This fund’s top positions lean heavily into high-growth biotech names like Madrigal and Insmed, where clinical upside drives returns. Against that backdrop, a sub 2% position in a commercial-stage name looks like a calculated pivot toward more durable revenue streams without abandoning upside.