How did CHRS outperform forecasts in Q4 2024?

Coherus BioSciences Inc. (CHRS) outperformed forecasts in Q4 2024 primarily due to strong sales of its key products, strategic divestitures, and effective cost management. Here are the key factors that contributed to its performance:

1. Revenue Growth from Key Products: CHRS reported a revenue of $54.1 million for Q4 2024, surpassing the consensus estimate of $44.15 million. This growth was driven by the sales of UDENYCA and LOQTORZI. UDENYCA net product sales increased by 28% year-over-year to $46.3 million, while LOQTORZI net revenue grew by 29% quarter-over-quarter to $7.5 million. These products accounted for the majority of CHRS's revenue, and their strong performance contributed significantly to the company's overall revenue outperformance.
2. Divestitures and Focus on Oncology: CHRS has been undergoing a strategic transformation, divesting non-core assets to focus on oncology. The divestiture of CIMERLI and YUSIMRY franchises is expected to streamline the company's operations and reduce costs, allowing it to allocate resources more efficiently. This focus on oncology, coupled with the sale of UDENYCA franchise to Intas Pharmaceuticals for $483.4 million, has positioned CHRS to capitalize on the growth opportunities in the oncology market.
3. Cost Management and Profitability: Despite the revenue outperformance, CHRS reported a net loss of $50.7 million for Q4 2024. However, the company's net income for the full year 2024 was $28.5 million, a significant improvement from a net loss in the previous year. This improvement can be attributed to effective cost management, including a reduction in research and development expenses and selling, general, and administrative expenses.
4. Market Conditions and Competitive Position: The biopharmaceutical market is highly competitive, and CHRS's ability to outperform forecasts may also be influenced by market conditions and the company's competitive position. CHRS's strategic partnerships and in-licensing deals, such as the collaboration with Junshi Biosciences for LOQTORZI, have helped it to leverage existing products and accelerate its pipeline.

In conclusion, CHRS's outperformance in Q4 2024 can be attributed to a combination of strong sales of its key products, strategic divestitures, effective cost management, and favorable market conditions. These factors collectively contributed to the company's revenue outperformance and profitability.