Coherus BioSciences Q3 2024 Financial Results and Business Update

Coherus BioSciences, Inc., based in Redwood City, California, recently announced its financial results for the third quarter of 2024, ending on September 30. The company reported a net revenue of $70.8 million during this period, largely fueled by the performance of UDENYCA® and LOQTORZI®. The net revenue for UDENYCA alone reached $66.1 million, marking a significant 30% increase from the previous quarter and a 100% rise compared to the same quarter in 2023. Meanwhile, LOQTORZI’s revenue climbed by over 50% from the second quarter of 2024, accruing net product sales of $5.8 million.

Denny Lanfear, Chairman and CEO of Coherus BioSciences, highlighted the company's strong revenue growth in the third quarter. He noted the substantial 30% increase in the UDENYCA franchise's net revenue compared to the second quarter and a significant 100% growth from Q3 2023. Lanfear attributed this growth to the company's focused efforts in oncology, which have resulted in higher gross profits, reduced operating costs, and lower interest expenses.

The recent business highlights include a notable increase in demand for UDENYCA, particularly for its ONBODY™ device, which saw a 54% uptick. The product maintained its second position in the pegfilgrastim market with a 28% market share. On the supply front, the labeling and packaging production of UDENYCA by Coherus’ third-party contract manufacturing organization is set to resume, slightly delayed from the initial schedule. The company expects to clear the backlog of approximately 120,000 units by the end of the year. Furthermore, Coherus is expanding its labeling and packaging resources, with an additional facility expected to be operational by the end of 2024, pending FDA approval. This expansion is projected to double the annual capacity to over one million UDENYCA units.

LOQTORZI, the first FDA-approved treatment for recurrent, locally advanced, or metastatic nasopharyngeal carcinoma, was commercially launched on January 2, 2024. The product has seen robust adoption, with patient uptake in relapsed locally advanced and first-line metastatic disease driving the long-term revenue growth. Since its launch, nearly 80% of National Comprehensive Cancer Network (NCCN) institutions have prescribed LOQTORZI for new patients.

In terms of pipeline advancements, Coherus is making significant progress in its immuno-oncology segment. The company plans to initiate a Phase 2 study for casdozokitug, an IL-27 antagonist, in combination with toripalimab and bevacizumab for treating unresectable locally advanced or metastatic hepatocellular carcinoma. Additionally, they anticipate final data from another Phase 2 trial of casdozokitug with atezolizumab and bevacizumab in the first quarter of 2025. Coherus also continues its Phase 1 study for CHS-114, an anti-CCR8 antibody, with plans to report data in the first half of 2025.

Financially, Coherus has exhibited a strong performance despite divestitures. The company’s net revenue for the first nine months of 2024 was $212.8 million, significantly higher than the $165.7 million recorded for the same period in 2023. This growth is attributed to increased sales from UDENYCA and LOQTORZI, offsetting the revenue from divested products like CIMERLI and YUSIMRY. Coherus also reported a notable reduction in operating expenses and interest expenses, contributing to an improved financial position.

The cost of goods sold (COGS) for the third quarter of 2024 was $20.7 million, down from $32.7 million in the same period of 2023. This decrease was primarily due to the divestiture of CIMERLI and YUSIMRY. However, there was a $9.7 million increase in COGS driven by higher UDENYCA volume. For the first nine months of 2024, COGS rose to $83.7 million from $74.4 million in the prior year, influenced by increased volumes of UDENYCA and LOQTORZI and changes in contract manufacturing costs.

Research and development expenses also saw a reduction, with $21.7 million spent in the third quarter of 2024 compared to $25.6 million in the same period of 2023. This decline is attributed to lower costs following biosimilar product divestitures and reduced headcount, partially offset by ongoing development expenses for casdozokitug and CHS-114.

As of September 30, 2024, Coherus had cash, cash equivalents, and investments in marketable securities totaling $97.7 million, a decrease from $117.7 million at the end of 2023. The company projects that its R&D and SG&A expenses for 2024 will range between $250 and $260 million, inclusive of approximately $30 million in stock-based compensation. This guidance excludes effects from acquisitions, collaborations, and other transactions not yet identified.