Coherus BioSciences Q4 2024: Unpacking Contradictions in UDENYCA Supply, LOQTORZI Adoption, and Growth Drivers

These are the key contradictions discussed in Coherus BioSciences' latest 2024 Q4 earnings call, specifically including: UDENYCA availability and supply, LOQTORZI usage and market penetration, LOQTORZI patient population and payer coverage, and UDENYCA growth drivers and on-body success:



Divestiture and Financial Strategy:
- Coherus is set to complete the UDENYCA franchise divestiture by late Q1 or early Q2, which will add $250 million to the company's balance sheet.
- This divestiture is part of a strategic plan to focus on the oncology segment, addressing the company's balance sheet debt overhang.

LOQTORZI Revenue and Market Expansion:
- LOQTORZI reported net revenue of $7.5 million in Q4, up 29% quarter-over-quarter.
- The increase is attributed to an expanding indication in nasopharyngeal cancer and a shift in market trends following NCCN guidelines that prefer LOQTORZI.

Pipeline Progress and Clinical Data:
- Coherus has completed several clinical trial stages for casdozokitug and CHS-114, with potential pivotal study advancements expected.
- The progress is driven by positive interim data and the pursuit of indications with high biologic rationale, enhancing the company's pipeline value.

Operational Efficiency and Cost Reduction:
- The company has reduced its 2024 SG&A expenses by 13% and R&D expenses by 15% compared to the prior year.
- This reduction is due to lower headcount and savings from biosimilar divestitures in early 2024.