Coherus Repays Pharmakon Advisors $75M Loan

Coherus BioSciences, Inc., based in Redwood City, California, has announced a significant restructuring of its financial obligations through a new financing agreement with Barings LLC. This strategic move enables Coherus to clear its remaining $75 million debt from a previous loan with Pharmakon Advisors, significantly enhancing the company’s financial health by reducing its term loan debt by about half and extending the maturity date to May 2029.

Denny Lanfear, the Chief Executive Officer of Coherus, emphasized the positive impact of this financial restructuring. He noted that the arrangement not only repays the $75 million from their earlier $250 million loan, which was due by October 2025, but also aligns the new maturity date with the company's developmental timelines. This realignment is expected to support Coherus’ long-term growth, particularly as it continues to focus on its oncology initiatives.

The financing deal includes two main components. First, Coherus secured $37.5 million through a royalty monetization agreement. This deal involves providing a percentage of net sales royalties from U.S. sales of their products LOQTORZI® and UDENYCA® up to a predetermined cap. Second, the company received $38.7 million through a structured debt loan, which also matures in May 2029. This dual approach provided Coherus with the funds needed to address its immediate financial obligations while setting a solid foundation for future stability.

Barings LLC, a global asset management firm, played a crucial role in this financial arrangement, offering flexible financing solutions that suit Coherus’ needs. Latham & Watkins LLP served as the legal advisors for this transaction, while Armentum Partners, LLC provided financial advice to Coherus.

Coherus BioSciences is a commercial-stage biopharmaceutical company dedicated to developing and marketing innovative immunotherapies aimed at treating cancer. Their development pipeline features several promising candidates designed to enhance immune responses against cancer. One of their leading projects is Casdozokitug, an anti-IL-27 antibody currently undergoing Phase 1/2 trials for advanced solid tumors and a Phase 2 trial for hepatocellular carcinoma. Additionally, CHS-114, an ADCC-enhanced anti-CCR8 antibody, is in a Phase 1 clinical trial for patients with advanced solid tumors. Another notable candidate, CHS-1000, is in the preclinical stage and targets immune-suppressive mechanisms via the ILT4 pathway.

Coherus also markets several key oncology products. LOQTORZI® (toripalimab-tpzi) is a next-generation PD-1 inhibitor. UDENYCA® (pegfilgrastim-cbqv) serves as a biosimilar to Neulasta®, and YUSIMRY® (adalimumab-aqvh) is a biosimilar to Humira®. These products not only strengthen Coherus’ market presence but also provide valuable treatment options for patients.

This strategic financial move by Coherus is designed to bolster its capacity to support ongoing and future developments in cancer treatment, thereby aiming for sustainable growth and continued innovation in the biopharmaceutical sector.