Form 4: Apellis CFO Sells Shares Under 10b5-1 Plan

Apellis Pharmaceuticals' CFO, Timothy Sullivan, executed a pre-scheduled sale of common stock following the exercise of options.

Summary

• Timothy Sullivan, Chief Financial Officer of Apellis Pharmaceuticals, Inc., engaged in transactions involving the company's common stock on September 8, 2025.
• Sullivan exercised options to acquire 15,000 shares of common stock at an exercise price of $10.03 per share.
• Concurrently, he sold 32,729 shares of common stock at a price of $27.86 per share.
• An additional 10,000 shares of common stock were sold at a weighted average price of $27.83 per share, with individual transaction prices ranging from $27.67 to $27.98.
• These transactions were pre-scheduled under a Rule 10b5-1 trading plan established on June 9, 2025.
• Following these transactions, Sullivan directly holds 100,936 shares and indirectly holds 60,396 shares through The Timothy E Sullivan Irrevocable Trust of 2023.
• He retains 242,903 stock options after the exercise.

Sentiment

Score: 6

Explanation: Neutral to slightly positive. The transactions are pre-scheduled under a 10b5-1 plan, which reduces negative sentiment associated with insider sales. The significant gain from option exercise is a positive for the executive, reflecting the company's stock performance.

Positives

• The transactions were executed under a pre-arranged Rule 10b5-1 trading plan, indicating a planned and transparent approach to insider stock sales, which mitigates concerns about trading on non-public information.
• The exercise price of the options ($10.03) is significantly lower than the sale price (average of approximately $27.80), indicating a substantial gain for the CFO and demonstrating alignment of executive incentives with shareholder value creation.

Negatives

• An insider sale, even if pre-scheduled, can sometimes be perceived negatively by the market, although the impact is mitigated by the 10b5-1 plan.

Future Outlook

The filing does not provide specific forward-looking statements or guidance beyond the scheduled nature of the transactions under a Rule 10b5-1 plan.

Management Comments

• "This is a scheduled exercise & sale from 10b5-1 trading plan dated June 9, 2025."
• "The price reported is a weighted average price. These shares were sold in multiple transactions at prices ranging from $27.67 to $27.98, inclusive."
• "The reporting person hereby undertakes to provide, upon request, to the staff of the Securities and Exchange Commission, the issuer or a security holder of the issuer full information regarding the number of shares sold at each separate price."
• "The reporting person disclaims beneficial ownership over the shares held by The Timothy E Sullivan Irrevocable Trust of 2023 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 specific industry context. However, insider transactions, particularly those under 10b5-1 plans, are common across all industries for executive compensation and personal financial planning.

Comparison to Industry Standards

• NA This filing is a standard insider transaction report and does not contain information for comparison to industry-specific operational or financial benchmarks.

Corporate Governance

Related Party Transactions

• Indirect ownership of 60,396 shares through The Timothy E Sullivan Irrevocable Trust of 2023, where Patrick O. Collins is the trustee. The reporting person disclaims beneficial ownership except to the extent of his pecuniary interest.

Stakeholder Impact

• Shareholders: The sale of shares by a CFO, even under a 10b5-1 plan, could be viewed as a signal, though the pre-scheduled nature mitigates immediate concerns. The significant profit from option exercise demonstrates alignment of executive incentives with share price appreciation.
• Employees: No direct impact on employees is mentioned in this filing.
• Customers: No direct impact on customers is mentioned in this filing.
• Suppliers: No direct impact on suppliers is mentioned in this filing.
• Creditors: No direct impact on creditors is mentioned in this filing.

Next Steps

• The filing does not explicitly mention future actions or milestones beyond the completion of these specific transactions.

Key Dates

Recommendation

This Form 4 filing details routine, pre-scheduled insider transactions under a 10b5-1 plan. It does not provide new material information about the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. The transactions reflect an executive's personal financial planning and compensation structure rather than a change in fundamental outlook for Apellis Pharmaceuticals. Therefore, a 'hold' recommendation is appropriate, maintaining existing positions based on broader company fundamentals and market conditions.

Keywords

Apellis Pharmaceuticals, APLS, Timothy Sullivan, CFO, Insider Trading, Form 4, Stock Option Exercise, Stock Sale, 10b5-1 Plan, Biotechnology, Pharmaceuticals