Coherus Oncology’s LOQTORZI Duration Growth and Casdozo Trial Rationale Contradict Earlier Guidance in 2026 Q2 Earnings Call

Date of Call: Aug 5, 2026

Financials Results

• Revenue: LOQTORZI net revenue Q2 2026: $13.6M, representing 15% quarter-over-quarter growth.

Guidance:

• LOQTORZI revenue for full year 2026 expected to be between $57 million and $62 million.
• Combined OPEX for full year 2026 expected to be between $170 and $175 million.
• Expect average quarterly growth for LOQTORZI in the 10% to 15% range going forward.
• Anticipate initial data for tagmokitug studies in head and neck, GI cancers, and colorectal cancer later this year.
• Anticipate initial data for casdozokitug in HCC in Q4 2026.
• Formal disclosure of mature data for tagmokitug studies expected in October 2026.

Business Commentary:

Revenue Growth and LOQTORZI Performance:

• LOQTORZI net revenues for Q2 2026 contributed to $13.6 million in net sales, representing a 15% quarter-over-quarter growth.
• Growth was driven by increased new patient starts, reduced patient discontinuations, and a gradual improvement in duration of therapy.

Cost Reduction and Financial Efficiency:

• R&D expenses from continuing operations decreased to $21.4 million, down from $26.3 million in the same quarter last year.
• SG&A expenses also decreased to $21.0 million, down from $26.0 million, attributed to reduced headcount and lower operating costs following the divestiture of the biosimilar business.

Clinical Development and Data Maturation:

• Three clinical studies for tagmokitug and casdozokitug have completed full enrollment, with initial data readouts anticipated in October and later in the year.
• The focus is on evaluating the efficacy of tagmokitug in overcoming immune resistance in various cancers and understanding biomarker enrichment opportunities.

Cash and Liabilities Management:

• Cash equivalents and investments totaled $105.3 million, with a decrease primarily due to reductions in TSA obligations.
• The company expects to substantially settle remaining obligations by year-end, reducing cash burn and enhancing financial stability.

Sentiment Analysis:

Overall Tone: Positive

• Dr. Raj Diaz stated 'I’m pleased to report that three of our studies have completed full enrollment.' CEO Denny Lanfear said 'we are in an exciting period of initial clinical data generation' and 'At the one-year mark post-divestitures, we are building clear organizational momentum.' Sameer Goregaoker noted 'We exited the quarter with renewed momentum and strong execution.'

Q&A:

• Question from Paul Jeng (Guggenheim): For Tagmo, do you see any potential to prospectively enroll patients based on HPV status as the study progresses? Have you also looked into oropharyngeal versus non-oropharyngeal as a possible stratification factor?
  Response: Management will continue accrual and follow-up; biomarker data to inform next steps, with formal communication in October. Oropharyngeal carcinoma (where HPV-positive disease is common) will be part of the data analysis.

• Question from Paul Jeng (Guggenheim): For Casdozo, do you have any visibility into when you might be able to pull the trigger on a phase III? Is it enough to see some mature response rates, or are you going to wait for overall survival on that study down the line?
  Response: Overall survival will take time, but management does not envision needing to wait for a formal overall survival endpoint to proceed; updates are expected later in 2026, focusing on scan data and durability.

• Question from Brian Cheng (J.P. Morgan): What is driving the improvement on duration therapy for LOQTORZI here? Are you seeing a greater shift from patients that are coming from first-line usage, particularly after your six-year JUPITER-02 data read?
  Response: Growth is driven by converting physicians from chemo alone and off-label IOs to LOQTORZI. Durational treatment is increasing gradually; headroom remains in new patient starts and duration.

• Question from Brian Cheng (J.P. Morgan): As we think about the Tagmo head and neck data read, how do we get a better understanding of Tagmo contribution on top of TORI? Are there any specific metrics or biomarkers investors need to lean on?
  Response: Focus on totality of evidence: look at response rate, clinical benefit rate, durability, and safety. The association with TIRI (which includes the target CCR8-positive T-regs) is reassuring; plans are in place to robustly show tagmo's contribution early.

• Question from Jay Olson (Oppenheimer): How do you expect various LOQTORZI growth drivers to evolve over the long term, including penetration within NPC, longer duration of therapy, or combination opportunities?
  Response: Not pursuing combinations in NPC currently. Priorities are: 1) Reducing use of chemo alone in the community setting via education, and 2) Improving duration of therapy by addressing dosing and discontinuation issues.

• Question from Jay Olson (Oppenheimer): Based on the data you’ve seen so far, as we look ahead to your October data disclosure, what would you like investors to focus on besides ORR?
  Response: Investors should focus on the totality of evidence: clinical benefit rate, response rate, stable disease, durability, safety/tolerability, and biomarker analyses.

• Question from Nick (Baird): For the upcoming Casdozo triple data in HCC, what metrics do you expect to show, and what results do you need to come away with more confidence on the triple?
  Response: Look at totality of data: response rate, durability, CBR, ctDNA, and baseline IL-27 levels. Expect response to deepen over time as seen in prior studies.

• Question from Douglas Tsao (H.C. Wainwright): Can you provide more detail on dosing issues with clinicians that you mentioned?
  Response: Some physicians may be misdosing (Q3W instead of Q2W) or not treating to progression. It's primarily an educational issue; a secondary opportunity is driving appropriate dosing with existing physicians.

Contradiction Point 1

LOQTORZI Duration Growth Drivers

Contradiction on whether duration growth is driven by new first-line patients or existing patient cohort improvements.

Brian Cheng (J.P. Morgan) - Brian Cheng (J.P. Morgan)

2026Q2: The gradual increase in duration of therapy is expected to continue, supported by headroom in new patient starts and duration improvements. - Sameer Goregaoker(CCO)

What factors are contributing to the increased duration of therapy for LOQTORZI? - Jay Olson (Oppenheimer)

2026Q1: Duration of treatment is higher for first-line patients... This trend is observed across both new and existing patients, with duration expected to grow closer to clinical trial levels over time. - Sameer Goregaoker(CCO)

Contradiction Point 2

Nature of Weather Impact on LOQTORZI Sales

Contradiction on whether weather affected new patient starts or only existing patients' cycles.

Douglas Tsao (H.C. Wainwright) - Douglas Tsao (H.C. Wainwright)

2026Q2: The issue is primarily an educational misunderstanding... This is a secondary opportunity compared to converting non-users. - Sameer Goregaoker(CCO)

Can you provide details on the dosing issues with LOQTORZI and the potential revenue impact of resolving them? - Douglas Tsao (H.C. Wainwright)

2026Q1: The 10% decline... was driven by severe winter storms affecting patient cycles... New patient starts were robust and unaffected... - Sameer Goregaoker(CCO)

Contradiction Point 3

LOQTORZI Duration of Therapy Trends

Contradiction on whether duration of therapy is increasing or still maturing.

Brian Cheng (J.P. Morgan) - Brian Cheng (J.P. Morgan)

2026Q2: LOQTORZI growth is driven by... the gradual increase in duration of therapy is expected to continue, supported by headroom... - Sameer Goregaoker(CCO)

What is driving the improved treatment duration for LOQTORZI? - Douglas Tsao (H.C. Wainwright)

20260310-2025 Q4: Duration of therapy varies by line... duration continues to increase over time. It is still too early to calculate an average duration due to limited patient cohorts... - Sameer Goregaoker(CCO)

Contradiction Point 4

Tagmo Data Disclosure Strategy

Contradiction on the planned method of disclosing Tagmo data.

Paul Jeng (Guggenheim) - Paul Jeng (Guggenheim)

2026Q2: For the Tagmo head and neck data read, focus on the totality of evidence... The association with the TIRI score... will be a robust conversation with the FDA. - Dr. Theresa LaVallee(CSDO)

Regarding Tagmo and Casdozo, do you see potential to enroll patients based on HPV status, and when might you decide to trigger phase III for Casdozo after the phase II data update? - Michael Nedelcovych (TD Cowen)

20260310-2025 Q4: Data availability timing depends on patient accrual and scan numbers. There are two scenarios: if timing aligns with a major congress, data will be released there; otherwise, it will be disclosed via corporate release as it becomes available... - Dr. Theresa LaVallee(CSDO)

Contradiction Point 5

Casdozo (CHS-114) Phase III Pivotal Trial Rationale

Inconsistent criteria for moving Casdozo into a pivotal trial, shifting from needing durable response data to potentially not needing overall survival.

Paul Jeng (Guggenheim) - Paul Jeng (Guggenheim)

2026Q2: For Casdozo, overall survival will take time, but it is not anticipated to be necessary to wait for a formal overall survival endpoint to proceed. Subsequent follow-up later this year will provide more mature data on response rates and durability. - Dr. Raj Diaz(Chief Medical Officer)

For Casdozo, after the phase II data update, will you trigger phase III based on mature response rate or wait for overall survival? - Jason McCarthy (Maxim Group)

20251107-2025 Q3: The decision to move into a pivotal study will be based on the totality of evidence, not a single measure. Key desired outcomes... include: a solid overall response rate (ORR), evidence of durability, and a deepening of responses over time. - Rosh Dias(Chief Medical Officer)