Coherus BioSciences Q2 2024 Financial Results and Business Update

Coherus BioSciences Inc., based in Redwood City, California, disclosed its financial performance for the quarter ending June 30, 2024, along with significant business updates. The company reported a net revenue of $65.0 million for the second quarter of 2024.

Key Business Developments:

UDENYCA® Performance:
UDENYCA generated net product sales of $50.9 million in Q2 2024, showing an increase of 19% from $42.7 million in Q1 2024 and a 60% rise from $31.7 million in Q2 2023. The total unit demand for UDENYCA grew by 25% compared to Q1 2024 and surged by 138% compared to Q2 2023. Based on IQVIA data, the UDENYCA franchise achieved a market share of 29.0% in Q2 2024, a 4-point increase from Q1 2024.

LOQTORZI® Launch:
LOQTORZI was launched commercially on January 2, 2024, as the first FDA-approved treatment for recurrent, locally advanced, or metastatic nasopharyngeal carcinoma (NPC). In Q2 2024, LOQTORZI reported net sales of $3.8 million, with new patient uptake primarily in relapsed locally advanced and first-line metastatic disease. LOQTORZI is now available in all 33 National Comprehensive Cancer Network (NCCN) institutions, and the Centers for Medicare and Medicaid Services have granted it a permanent J Code, implemented on July 1, 2024.

Immuno-Oncology Pipeline Progress:
Clinical data from the Phase 1 study of CHS-114, a selective cytolytic anti-CCR8 antibody, was presented at the 2024 ASCO Annual Meeting. The data revealed selective depletion of peripheral CCR8+ regulatory T cells, establishing proof of mechanism and showing an acceptable safety profile with no dose-limiting toxicities and a disease control rate of 47% in heavily pretreated patients with solid tumors. Expansion cohorts for CHS-114 in combination with toripalimab are currently enrolling patients with advanced/metastatic head and neck squamous cell carcinoma (HNSCC). A Phase 2 study of casdozokitug, an immune regulatory IL-27 antagonizing antibody, is expected to begin in Q4 2024, targeting treatment-naïve patients with unresectable locally advanced or metastatic hepatocellular carcinoma. Additionally, an Investigational New Drug (IND) application for CHS-1000, a novel humanized Fc-modified IgG1 monoclonal antibody targeting ILT4 (LILRB2), was cleared by the FDA in Q2 2024, and Coherus plans to initiate a Phase 1 study soon.

Leadership Update:
Bryan McMichael has been appointed as the Chief Financial Officer. He expressed confidence in the company's future, citing the strength of the team, commercial portfolio, and pipeline.

Financial Results:
For the second quarter of 2024, Coherus reported a net revenue of $65.0 million, comprising $50.9 million from UDENYCA sales, $3.8 million from LOQTORZI, $3.8 million from YUSIMRY, and other revenue sources totaling $6.5 million. In comparison, the net revenue for the second quarter of 2023 was $58.7 million. The revenue for the first half of 2024 was $142.0 million, compared to $91.2 million for the same period in 2023.

The cost of goods sold (COGS) was $28.4 million in Q2 2024, compared to $24.8 million in Q2 2023, primarily due to increased unit volumes and a $4.5 million fee for a contract change with a CMO, partially offset by a $9.7 million decrease in royalty costs. Research and development (R&D) expenses were $22.0 million, down from $23.3 million in Q2 2023, mainly due to savings from reduced headcount and lower costs related to biosimilar products. Selling, general, and administrative (SG&A) expenses decreased to $35.2 million from $45.1 million in Q2 2023, driven primarily by lower headcount.

Coherus reported a net loss of $12.9 million, or $(0.11) per share, for Q2 2024, compared to a net loss of $42.9 million, or $(0.49) per share, in Q2 2023. For the first half of 2024, the company reported a net income of $90.0 million, or $0.73 per share, compared to a net loss of $118.6 million, or $(1.42) per share, for the same period in 2023.

Financial Guidance for 2024:
Coherus projects combined R&D and SG&A expenses for 2024 to be between $250 and $265 million, including approximately $40 million of stock-based compensation expense and excluding the effects of acquisitions, collaborations, investments, divestitures, and other transactions. 

Conclusion:
Coherus BioSciences continues to show strong performance with increasing sales and significant progress in its immuno-oncology pipeline. The appointment of Bryan McMichael as CFO and a clear strategy focused on oncology are expected to drive future growth and shareholder value.

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