Executive Summary / Key Takeaways

• Apollomics Inc. ($APLM) is a clinical-stage biopharmaceutical company focused on developing novel oncology therapies, primarily centered on its lead candidates, vebreltinib (APL-101) and apolecylin (APL-106), targeting significant unmet needs in various cancers.
• Vebreltinib, a c-MET inhibitor, has shown promising clinical efficacy in non-small cell lung cancer (NSCLC) with MET Exon 14 skipping mutation (66.2% ORR in treatment-naive patients) and has received conditional approval in China through its partner Everstone.
• The company is strategically prioritizing its resources, particularly focusing on NSCLC with MET Amplification for vebreltinib, and has extended its cash runway into the first quarter of 2026 through a PIPE financing and a strategic collaboration with LaunXP.
• Despite clinical progress, Apollomics faces significant corporate challenges, including a Nasdaq delisting notice which the company is appealing, and ongoing litigation, highlighting substantial operational and financial risks.
• The investment thesis hinges on the successful advancement of its targeted therapies through regulatory pathways and the ability to secure further funding and partnerships to overcome current liquidity and corporate governance hurdles.

The Precision Oncology Frontier: Apollomics' Strategic Pursuit

Apollomics Inc. is a clinical-stage biopharmaceutical company established in 2015, dedicated to the discovery and development of oncology therapies. The company's core strategy revolves around harnessing the immune system and targeting specific molecular pathways to inhibit cancer, addressing difficult-to-treat and treatment-resistant forms of the disease. This focused approach positions Apollomics within the highly competitive yet rapidly evolving precision oncology sector, where innovation in targeted therapies holds the promise of improved patient outcomes.

The biotechnology industry, particularly in oncology, is characterized by intense research and development, stringent regulatory requirements, and significant capital investment. Larger pharmaceutical players like Merck (MRK), Pfizer (PFE), AstraZeneca (AZN), and Roche (RHHBY) dominate the broader oncology market with diversified portfolios and established commercialization infrastructures. These industry giants benefit from extensive global distribution networks, robust manufacturing capabilities, and substantial financial resources, enabling them to pursue multiple drug candidates simultaneously and absorb the high costs associated with clinical trials.

Apollomics, as a smaller, clinical-stage entity, distinguishes itself through a specialized focus on novel inhibitors for specific genetic mutations and amplifications. While it lacks the broad market reach and financial might of its larger counterparts, its agility in early-stage drug development and its potential for "first-in-class" or "best-in-class" therapies in niche indications represent its primary competitive advantages. For instance, Apollomics' vebreltinib aims to be a best-in-class treatment for NSCLC with MET Exon 14 skipping mutation and a first-in-class targeted treatment for NSCLC with c-MET amplification and glioblastoma with PTPRZ-MET Fusion. This specialized approach, if successful, could carve out defensible market segments, even against the formidable presence of industry leaders.

Technological Edge: Vebreltinib and Apolecylin's Targeted Impact

At the heart of Apollomics' investment thesis lies its differentiated technology, particularly embodied in its two lead drug candidates: vebreltinib (APL-101) and apolecylin (APL-106). These therapies represent a targeted approach to cancer treatment, aiming to precisely inhibit the molecular pathways that drive tumor growth and progression.

Vebreltinib (APL-101) is a novel, oral, active, brain-penetrant, and highly specific c-MET inhibitor. Its mechanism of action involves inhibiting the aberrant activation of the HGF/c-Met axis, a critical pathway implicated in tumor growth, proliferation, and the development of resistance to certain targeted therapies. By targeting c-Met dysregulation, vebreltinib offers a potential breakthrough for patients with MET exon 14 skipping NSCLC and other cancers driven by c-Met alterations, including exon 14 skipping, MET amplification, and MET fusions. In clinical trials, vebreltinib has demonstrated compelling efficacy. Interim data from the global SPARTA and China-based KUNPENG trials in 107 NSCLC patients with centrally confirmed MET Exon 14 skipping mutations showed an objective response rate (ORR) of 66.2% in 71 treatment-naive patients, supported by a median duration of response (DoR) of 16.5 months. In 36 previously treated patients, the ORR was 61.1% with a median DoR of 16.7 months. This performance underscores its potential to improve patient treatment beyond currently available therapies.

Apolecylin (APL-106), licensed from Glycomimetics (GLYC) for the Greater China market, is a first-in-class e-selectin inhibitor. This innovative mechanism drives cancer cells out of the bone marrow, making them more susceptible to chemotherapy. Apolecylin is being developed in combination with standard-of-care chemotherapy for patients with relapsed or refractory acute myeloid leukemia (AML), with the potential to improve both efficacy and tolerability. The drug has received Breakthrough Therapy Designation from both the FDA and China's NMPA, highlighting its potential to address a serious unmet medical need.

These technological differentiators are crucial for Apollomics' competitive positioning. By focusing on highly specific molecular targets, Apollomics aims to offer therapies with potentially superior efficacy and a more favorable safety profile compared to broader-acting treatments. This precision medicine approach could lead to higher average selling prices (ASPs) and stronger market penetration within defined patient populations, contributing to a competitive moat. The company's R&D initiatives, including the strategic collaboration with LaunXP to explore vebreltinib in combination with an EGFR inhibitor, aim to expand the drug's utility and potentially delay resistance, further enhancing its long-term market potential.

Operational Progress and Financial Landscape

Apollomics has made substantial operational progress in advancing its pipeline. In November 2023, its partner, Everstone Pharmaceutical Technology Company, secured conditional approval from China's National Medical Products Administration (NMPA) for the commercialization of vebreltinib to treat patients with MET Exon 14 skipping NSCLC in Greater China. This milestone provides an early validation of vebreltinib's clinical utility and a potential revenue stream through the partnership.

The company engaged with the FDA in February 2024 to discuss the development and registration pathway for vebreltinib across three indications: NSCLC with MET Exon 14 skipping mutation, NSCLC with c-MET amplification, and glioblastoma (GBM) with PTPRZ-MET fusions. For NSCLC with MET Exon 14 skipping, Apollomics plans to continue enrollment in its SPARTA cohorts and review additional data with the FDA, aiming for traditional approval after all patients achieve a 12-month follow-up, with a potential NDA submission in 2025. For pre-treated NSCLC patients with c-MET amplification, enrollment in the SPARTA study continues, with a potential NDA submission for accelerated approval in 2026. The Phase 3 bridging study in China for apolecylin in relapsed or refractory AML was fully enrolled by the end of 2023, with top-line data expected in the first half of 2025.

Financially, Apollomics is a clinical-stage company with no revenue generation from product sales, reflected in its annual revenue of $0 for 2024 and 2023. The company reported a net loss of $(53.86) million for 2024, a significant improvement from the $(172.60) million net loss in 2023. This reduction was partly due to lower non-cash expenses related to convertible preferred shares and capital markets activities in 2024. Research and development expenses decreased to $24.57 million in 2024 from $34.19 million in 2023, while general and administrative expenses also fell to $17.77 million in 2024 from $20.64 million in 2023. The decrease in G&A expenses in 2024 reflects a reduction in one-time costs associated with its 2023 business combination and public listing.

As of December 31, 2024, Apollomics held $9.77 million in cash, cash equivalents, bank deposits, and money market funds, down from $37.8 million at the end of 2023. Net cash used in operating activities was approximately $(28.48) million in 2024, compared to $(43.20) million in 2023. To bolster its liquidity, the company raised $5.8 million in a PIPE financing in May 2024 and secured a $10 million upfront payment from a strategic collaboration with LaunXP. These funds, combined with ongoing expense reductions, are projected to provide a cash runway into the first quarter of 2026. This extended runway is critical for funding continued clinical development and navigating the regulatory landscape.

Outlook, Strategic Focus, and Looming Risks

Apollomics' outlook is heavily tied to the successful execution of its clinical development programs and its ability to secure regulatory approvals. The company's strategic prioritization on NSCLC patients with MET Amplification for vebreltinib aims to efficiently allocate resources to generate additional clinical data for regulatory submissions. The collaboration with LaunXP for vebreltinib in combination with an EGFR inhibitor is a forward-looking move, potentially expanding the drug's market and addressing resistance mechanisms, which could significantly enhance its commercial prospects.

However, the company faces substantial risks. On September 22, 2025, Apollomics received a delisting determination letter from Nasdaq, citing the Staff's belief that the company is now only a "public shell." Apollomics has publicly disagreed with this assessment and filed an appeal on September 23, 2025. The outcome of this appeal is critical, as delisting could severely impact the company's ability to raise capital and maintain investor confidence. Furthermore, Apollomics is involved in the "Cayman Litigation," initiated by an investment manager for two minority investors in July 2024, though these proceedings were stayed by a consent order in September 2025. These legal and regulatory challenges introduce significant uncertainty and could divert management's focus and financial resources.

The inherent risks of clinical-stage biopharmaceutical development, including the potential for trial failures, unexpected safety issues, and delays in regulatory approvals, also remain prominent. While Apollomics has demonstrated promising interim data, the path to market is long and uncertain. The company's ability to maintain its cash runway beyond the first quarter of 2026 will depend on further financing activities or the successful commercialization of its assets, particularly in China through its partnership with Everstone.

Conclusion

Apollomics Inc. stands at a pivotal juncture, poised to potentially unlock significant value through its targeted oncology therapies, particularly vebreltinib. The company's strategic focus on unmet medical needs in NSCLC and AML, backed by encouraging clinical data and a differentiated technological approach, forms the core of its investment thesis. The conditional approval of vebreltinib in China and the Breakthrough Therapy Designation for apolecylin underscore the potential of its pipeline.

Despite these clinical and strategic advancements, the company's journey is fraught with significant corporate and financial challenges, most notably the Nasdaq delisting notice and ongoing litigation. The ability of Apollomics to successfully appeal its delisting, manage its legal obligations, and continue to fund its operations through additional capital raises or partnerships will be paramount. For discerning investors, Apollomics represents a high-risk, high-reward opportunity, where the long-term potential of its precision oncology pipeline must be weighed against the immediate corporate headwinds and the inherent uncertainties of drug development. The company's future hinges on its ability to translate its technological leadership into regulatory successes and commercial viability, thereby solidifying its position in the competitive oncology landscape.