Apellis Pharmaceuticals (NASDAQ: APLS) saw its stock price plummet 22.30% on Thursday, despite reporting better-than-expected third-quarter results. This significant drop has left investors and analysts puzzled, given the company's apparent financial strength.

The biopharmaceutical company reported earnings per share of $1.67, surpassing analysts' expectations of $1.60. Revenue for the quarter came in at $458.6 million, also beating the forecast of $453.6 million. This represents a substantial increase from $196.8 million in the same quarter last year, indicating strong year-over-year growth.

Adding to the positive financial picture, Apellis reported a robust cash position of $479.2 million as of September 30, 2025. This healthy cash reserve typically signals financial stability and the ability to fund future operations and research.

The stark contrast between the company's solid financial performance and the stock's negative reaction suggests that investors may be focusing on other factors not immediately apparent in the earnings report. Possible explanations could include concerns about future guidance, market competition, or broader industry trends affecting biopharmaceutical companies.

Wall Street analysts maintain a generally positive outlook on Apellis, with the current average rating being "buy" and a median 12-month price target of $35.00, which is approximately 14.1% above its last closing price before the earnings release.

As the trading day progressed, investors closely watched for any additional information or analyst insights that might explain this unexpected market response. The significant sell-off despite beating earnings estimates underscores the complexity of factors that can influence stock prices beyond traditional financial metrics.