Coherus Biosciences 2025 Q1 Earnings Misses Targets with Net Income Decline of 155%

Coherus Biosciences (CHRS) reported its fiscal 2025 Q1 earnings on May 12th, 2025. Results fell short of expectations, with the company swinging to a net loss from a profitable position the previous year. The strategic focus on innovative oncology is anticipated to offset current challenges, with guidance reflecting potential growth in LOQTORZI revenue. The company remains committed to expanding its oncology pipeline and leveraging biosimilar divestitures to support further development.

Revenue
Coherus Biosciences experienced a significant revenue increase in its fiscal 2025 Q1, driven by its innovative oncology business. The FDA-approved PD-1 inhibitor, LOQTORZI, emerged as the dominant revenue contributor, generating $7.35 million. Other revenue streams added a further $251,000, culminating in total net revenue of $7.60 million for the quarter. This revenue growth underscores the company's shift towards innovative treatments.

Earnings/Net Income
Coherus Biosciences reported a net loss of $0.49 per share in 2025 Q1, contrasting sharply with the $0.91 profit per share in 2024 Q1. The company faced a net loss of $56.57 million, indicating a significant downturn from the previous year's net income of $102.88 million. This performance suggests challenges in profitability despite increased revenue.

Price Action
The stock price of Coherus Biosciences increased by 4.08% during the latest trading day, remained steady over the past week, and surged 28.40% month-to-date.

Post-Earnings Price Action Review
The strategy of investing in Coherus Biosciences (CHRS) when earnings expectations are missed, followed by a 30-day holding period, has proven effective. This approach yielded a 20.4% gain, outperforming the SPY, which showed a 12.5% gain over the same period. The strategy focuses on capitalizing on positive market rebounds post-earnings misses, highlighting its potential to leverage market corrections and investor sentiment. This demonstrates the merit of combining earnings-based trades with a strategic holding period, offering insights into market behavior and stock recovery trends. The effectiveness of this strategy underscores the importance of timing and patience in equity investments, providing a valuable framework for investors seeking to navigate earnings volatility and achieve superior returns.

CEO Commentary
Denny Lanfear, Chief Executive Officer, emphasized that with the biosimilar divestitures completed, Coherus is now focused on its innovative oncology business. He highlighted LOQTORZI, the company's FDA-approved PD-1 inhibitor, as a significant growth driver, projecting annual revenue of $150 million to $200 million from the nasopharyngeal carcinoma indication alone. Lanfear expressed optimism about the commercial team's ability to deliver consistent growth following recent challenges, including restructuring and supply interruptions. He acknowledged the importance of expanding LOQTORZI's indications and developing proprietary pipeline products, indicating a strong commitment to enhancing patient survival and creating long-term shareholder value.

Guidance
Coherus Biosciences expects LOQTORZI revenue to grow to $150 million to $200 million annually over the next three years, providing non-dilutive funding for its development pipeline. The company anticipates that once quarterly revenues exceed $15 million, it will cover commercial costs and progressively contribute to R&D expenses. In addition, Bryan McMichael, Chief Financial Officer, projected that SG&A expenses for 2025 will be between $90 million and $100 million, with R&D expenses influenced by data readouts and prioritization processes.

Additional News
Coherus BioSciences has recently completed the divestiture of its UDENYCA franchise to Intas Pharmaceuticals in a deal valued at up to $558.4 million. This strategic transformation allows the company to focus on its innovative oncology programs, including the development of LOQTORZI® and pipeline candidates like casdozokitug and CHS-114. Additionally, Coherus has announced plans to repurchase approximately $170 million of its Convertible Senior Subordinated Notes due 2026, contingent upon the closing of the UDENYCA franchise divestiture. The transaction provides Coherus with a substantial cash balance, extending its financial runway into 2027 and funding pipeline development through key data catalysts.