Form 4: Apellis CEO Cedric Francois Executes Scheduled Stock Option Exercise and Share Sale

Apellis Pharmaceuticals CEO Cedric Francois reported the exercise of stock options and the sale of common stock totaling 19,725 shares, executed under a pre-arranged 10b5-1 trading plan.

Summary

• Cedric Francois, Chief Executive Officer and Director of Apellis Pharmaceuticals, Inc. (APLS), reported transactions involving the company's common stock.
• On July 17, 2025, Francois exercised stock options to acquire 8,997 shares of common stock at an exercise price of $4.31 per share.
• Concurrently, on July 17, 2025, Francois sold 19,725 shares of common stock at a weighted average sale price of $20.2147 per share.
• These transactions were executed as part of a pre-scheduled 10b5-1 trading plan established on March 10, 2025.
• Following these transactions, Francois directly holds 331,605 shares of common stock and 100,538 stock options.
• Additionally, Francois has indirect beneficial ownership of 532,946 shares through The Cedric Francois Irrevocable Trust of 2023 2, 472,065 shares through The Cedric Francois Irrevocable Trust of 2023, 300,000 shares through The Francois Grossi Trust, and 234,411 shares through The Francois-DuBois Educational Trust.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative. While the transactions are pre-planned under a 10b5-1 plan, the net sale of shares by a CEO can sometimes be perceived negatively by the market, even if it's for personal financial planning. The profitability of the exercise and sale is positive for the insider, but the overall impact on company sentiment is ambiguous without further context.

Positives

• The exercise of stock options at a low price ($4.31) and subsequent sale at a significantly higher price ($20.2147) indicates a profitable transaction for the CEO.
• The transactions were conducted under a pre-scheduled 10b5-1 trading plan, which suggests a pre-determined strategy rather than a reaction to immediate company news.

Negatives

• The net effect of the transactions is a reduction in direct beneficial ownership of common stock by the CEO (19,725 shares sold vs. 8,997 shares acquired via exercise), which some investors may interpret as a negative signal.

Risks

• Investor perception of insider selling, even if pre-planned, could lead to negative sentiment or downward pressure on the stock price.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

This Form 4 filing reports an individual insider transaction and does not provide broader industry context or trends.

Related Party Transactions

• Cedric Francois disclaims beneficial ownership over shares held by The Cedric Francois Irrevocable Trust of 2023 2, The Cedric Francois Irrevocable Trust of 2023, The Francois Grossi Trust, and The Francois-DuBois Educational Trust, except to the extent of his pecuniary interest therein. These trusts hold significant indirect beneficial ownership of Apellis Pharmaceuticals common stock.

Stakeholder Impact

• Shareholders may interpret the CEO's net sale of shares as a signal, potentially influencing their investment decisions, although the 10b5-1 plan mitigates some concerns about opportunistic selling.

Next Steps

• The document does not mention any specific future actions, events, or milestones for the company.

Key Dates

Keywords

Apellis Pharmaceuticals, APLS, Form 4, Insider Trading, Stock Option Exercise, Share Sale, 10b5-1 Plan, Cedric Francois, CEO, Beneficial Ownership