Form 4: Apellis CEO Cedric Francois Reports Routine Stock Sales Under 10b5-1 Plan

Apellis Pharmaceuticals CEO Cedric Francois disclosed the exercise of stock options and subsequent sale of company shares totaling over $2.8 million, 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 14, 2025, Francois exercised options to acquire 65,203 shares at an exercise price of $4.31 per share and subsequently sold 137,465 shares at a weighted average price of $20.1864 per share.
• On July 15, 2025, Francois exercised options to acquire an additional 800 shares at $4.31 per share and sold 1,900 shares at a weighted average price of $20.0884 per share.
• All reported transactions were conducted pursuant to a Rule 10b5-1 trading plan that was established on March 10, 2025.
• Following these transactions, Francois directly holds 342,333 shares of common stock and 109,535 stock options.
• Indirect beneficial ownership includes 532,946 shares held by The Cedric Francois Irrevocable Trust of 2023 2, 472,065 shares by The Cedric Francois Irrevocable Trust of 2023, 300,000 shares by The Francois Grossi Trust, and 234,411 shares by The Francois-DuBois Educational Trust.

Sentiment

Score: 5

Explanation: A Form 4 filing is a factual report of insider transactions, typically neutral in sentiment, especially when conducted under a pre-arranged 10b5-1 plan.

Positives

• The transactions were executed under a pre-arranged Rule 10b5-1 trading plan, which indicates a scheduled sale rather than a reaction to recent non-public information.
• The stock options exercised were granted in 2017 and are fully vested, representing a realization of long-term compensation.

Negatives

• The sale of shares by a CEO, even under a 10b5-1 plan, can sometimes be perceived negatively by some investors as it reduces direct ownership, though this is a common practice for executive compensation and diversification.

Future Outlook

No future outlook or guidance was provided in this Form 4 filing.

Management Comments

• This is a scheduled exercise & sale from 10b5-1 trading plan dated March 10, 2025.
• The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was affected.
• The reporting person disclaims beneficial ownership over the shares held by The Cedric Francois Irrevocable Trust of 2023 2 except to the extent of his pecuniary interest therein.

Industry Context

This Form 4 filing is a routine disclosure of insider transactions and does not provide information relevant to broader industry trends or the competitive landscape. It reflects an individual executive's compensation and personal financial planning.

Comparison to Industry Standards

• This document reports standard insider transactions (stock option exercise and sale) executed under a Rule 10b5-1 plan, which is a common and accepted practice for executives to manage their equity compensation and diversify their holdings in a compliant manner.
• There are no specific comparable companies, projects, or results mentioned in this filing to assess against.

Related Party Transactions

• The filing details indirect beneficial ownership through several trusts: The Cedric Francois Irrevocable Trust of 2023 2, The Cedric Francois Irrevocable Trust of 2023, The Francois Grossi Trust (where the spouse of the reporting person serves as trustee), and The Francois-DuBois Educational Trust. These are considered related party holdings.

Stakeholder Impact

• Shareholders: Provides transparency regarding executive stock transactions, which is standard for corporate governance. The sales are pre-planned and not indicative of new negative information.
• Employees, Customers, Suppliers, Creditors: No direct impact on these stakeholders from this routine insider transaction report.

Next Steps

• The reporting person undertakes to provide additional transaction details upon request to the SEC staff, the issuer, or a security holder of the issuer.

Key Dates

Keywords

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