REDWOOD CITY, Calif. - Coherus BioSciences, Inc. (NASDAQ:CHRS) completed the sale of its biosimilar product YUSIMRY to Hong Kong King-Friend Industrial Co. Ltd. (HKF) for a total of $40 million in cash, the company disclosed Thursday. The transaction, which was finalized on Wednesday, sees Meitheal Pharmaceuticals, a subsidiary of HKF, taking over the commercialization of YUSIMRY in the United States.
The divestiture aligns with Coherus's strategic pivot toward the oncology sector. According to Coherus Chairman and CEO Denny Lanfear, the proceeds from the sale will support the company's ambition to establish itself as a sustainable oncology enterprise and to reallocate resources for enhanced value creation.
Coherus's oncology portfolio includes LOQTORZI® (toripalimab-tpzi), an FDA-approved PD-1 inhibitor, the UDENYCA® (pegfilgrastim-cbqv) franchise with three FDA-approved presentations, and a clinical-stage immuno-oncology pipeline targeting the tumor microenvironment. The company's research and development efforts are concentrated on immunotherapies for cancer treatment, aiming to produce synergies between its pipeline and commercial capabilities.
The company's immuno-oncology pipeline features multiple antibody immunotherapy candidates designed to boost both innate and adaptive immune responses to foster a robust antitumor response.
Among these are Casdozokitug, an IL-27 antagonistic antibody in Phase 1/2 trials for advanced solid tumors and a Phase 2 study for hepatocellular carcinoma, and CHS-114, an anti-CCR8 antibody in a Phase 1 study for advanced solid tumors. Moreover, CHS-1000, a preclinical candidate, targets immune-suppressive mechanisms via the novel pathway ILT4.
Legal counsel for the transaction was provided by Latham & Watkins LLP. The information regarding the sale is based on a press release statement from Coherus BioSciences. The company's forward-looking statements involve risks and uncertainties that could impact actual results and are detailed in Coherus's SEC filings, including the most recent quarterly filing for the fiscal quarter ended March 31, 2024.
In other recent news, Coherus Biosciences (NASDAQ:CHRS) has been making significant strides in both earnings and product development. The company reported considerable revenue growth in its first quarter 2024 earnings call, primarily driven by the successful market launches of LOQTORZ and the UDENYCA on-body injector, both of which recently received US FDA approvals.
Alongside these positive developments, Coherus Biosciences also highlighted its ongoing efforts to strengthen its balance sheet and enhance shareholder value through strategic partnerships and product development.
In addition to its successful product launches, Coherus Biosciences has maintained its Buy rating from TD Cowen due to the company's promising product pipeline and strategic direction. The company's product Loqtorzi has been noted for its successful launch and potential for further growth through strategic partnerships.
Furthermore, Coherus Biosciences is also focusing on advancing its pipeline with Casdozokitug, CHS-114, and CHS-1000 as its top priorities, with Casdozo, an anti-IL-27 antibody, being closely watched due to its potential market impact.
These are recent developments for Coherus Biosciences, which is optimistic about continued revenue growth and market share expansion for its products. The company aims for peak market share and penetration for LOQTORZI within three years, with UDENYCA expected to be a primary growth driver in 2024. Despite the uncertainty in growth trajectory due to the early stages of product launches, Coherus Biosciences remains confident in its ongoing revenue growth and progress with key products.
InvestingPro Insights
As Coherus BioSciences Inc. (NASDAQ:CHRS) makes strategic moves to strengthen its position in the oncology market, it's important for investors to consider the company's financial health and market performance. According to real-time data from InvestingPro, Coherus has a market capitalization of $190.44 million. Despite impressive revenue growth in the last twelve months as of Q1 2024, with an increase of 64.63%, the company's operating income margin was -53.33%, reflecting significant operational costs.
InvestingPro Tips suggest that Coherus is rapidly depleting its cash reserves and analysts are not expecting the company to be profitable this year. Moreover, the valuation implies a poor free cash flow yield, which may be concerning for investors looking for short-term returns. The company has not been profitable over the last twelve months and does not pay a dividend, which could be a deterrent for income-focused investors.
For those interested in a deeper analysis, there are more InvestingPro Tips available for Coherus, which can be accessed by visiting https://www.investing.com/pro/CHRS. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these insights, investors can make more informed decisions regarding Coherus BioSciences and its potential in the evolving oncology sector.
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