Form 4: Apellis CEO Sells Shares for Tax Withholding

Apellis Pharmaceuticals CEO Cedric Francois sold 27,192 shares of common stock at $21.7654 per share to cover tax withholding obligations related to Restricted Stock Units.

Summary

• Cedric Francois, Chief Executive Officer and Director of Apellis Pharmaceuticals, Inc., reported a transaction involving the company's common stock.
• On January 22, 2026, Francois disposed of 27,192 shares of Apellis common stock at a price of $21.7654 per share.
• The sale was executed to cover tax withholding obligations associated with Restricted Stock Units (RSUs) that were released on January 21, 2026.
• Following this transaction, Francois directly beneficially owns 286,045 shares of common stock.
• Additionally, Francois indirectly beneficially owns 1,314,422 shares through various trusts: 307,946 shares via The Cedric Francois Irrevocable Trust of 2023 2, 472,065 shares via The Cedric Francois Irrevocable Trust of 2023, 300,000 shares via The Francois Grossi Trust, and 234,411 shares via The Francois-DuBois Educational Trust.

Sentiment

Score: 6

Explanation: The transaction is a standard 'sell to cover' for tax purposes, which is generally considered a neutral event. It indicates the vesting of RSUs, a positive for the executive, but the sale itself does not provide a direct signal about the company's operational performance or future prospects beyond compensation structure.

Positives

• The transaction is a routine 'sell to cover' for tax obligations, indicating the vesting of Restricted Stock Units (RSUs), which is a form of executive compensation.
• The CEO retains significant direct and indirect ownership in the company, demonstrating continued alignment with shareholder interests despite the sale.

Negatives

• While a routine transaction, any sale of shares by a high-ranking executive, even for tax purposes, can sometimes be perceived negatively by some market participants.

Industry Context

This transaction is a standard insider filing (Form 4) detailing a 'sell to cover' event, which is a common practice across all industries for executives receiving equity compensation. It does not provide specific insights into broader pharmaceutical industry trends or competitive dynamics, but rather reflects a routine aspect of executive compensation and tax management.

Related Party Transactions

• Cedric Francois's spouse, Juliana Grossi, serves as trustee for The Francois Grossi Trust, which holds 300,000 shares indirectly beneficially owned by Cedric Francois. The reporting person disclaims beneficial ownership over these shares except to the extent of his pecuniary interest.

Stakeholder Impact

• Shareholders: The transaction is a routine tax-related sale and does not indicate a change in the CEO's long-term commitment to the company, as he retains substantial direct and indirect ownership. It provides transparency regarding executive compensation and shareholdings.

Key Dates

Recommendation

This Form 4 filing details a routine 'sell to cover' transaction by the CEO for tax obligations related to vested Restricted Stock Units. Such transactions are common and do not typically signal a change in the company's fundamentals or the executive's confidence. The CEO retains significant direct and indirect ownership. Therefore, this filing alone does not warrant a change in investment thesis, and a 'hold' recommendation is appropriate based solely on this information.

Keywords

Apellis Pharmaceuticals, APLS, Cedric Francois, Insider Trading, Form 4, Stock Sale, CEO, Restricted Stock Units, Tax Withholding