Coherus Biosciences (CHRS) 8 Aug 24 2024 Q2 Earnings call transcript

In the second quarter of 2024, Coherus BioSciences reported a strong performance, driven by a strategic focus on oncology and the successful launch of their first commercial immuno-oncology agent, LOQTORZI. During the earnings call, Coherus' management provided insights into the company's financial health, growth prospects, and strategic initiatives. Here are the key takeaways from the call.

Financial Performance

Coherus reported a 10% year-over-year increase in total sales, reaching $65 million, even without the ophthalmology biosimilar that was divested earlier this year. The company's average selling price remains consistently strong, and market share is growing. The financial stability was highlighted by the balance sheet, which ended Q2 with $159 million, positioning the company well for the second half of the year and beyond.

Strategic Focus on Oncology

Coherus' strategic focus on oncology is paying off, with LOQTORZI demonstrating a profound survival advantage in nasopharyngeal carcinoma and expanding opportunities in the marketplace. The company's commitment to oncology is expected to endure and increase over the long term, as Coherus holds a clear competitive advantage with the only brand offering three presentation options for the drug.

LOQTORZI Launch and Market Expansion

LOQTORZI's launch continues to progress according to plan, with the drug gaining significant traction in the market. The company has achieved several operational milestones, including inclusion in NCCN, ASCO, and ClinPath guidelines, payer coverage on nearly 100% targeted medical benefit lives, and the granting of a J-Code by CMS for electronic billing and faster reimbursement. These achievements set the foundation for broad access to LOQTORZI, ensuring its dominance in the NPC market, estimated to be valued at $150 million to $200 million.

Pipeline and Research

Coherus' pipeline of innovative immuno-oncology drug candidates is another highlight, with clinical studies underway across areas of unmet medical need, including head and neck cancers and small cell lung cancer and hepatocellular carcinoma. The company's commitment to research and development, along with collaborations with partners like Junshi Biosciences and ENB Therapeutics, positions Coherus for long-term value creation for shareholders.

Challenges and Opportunities

Coherus' earnings call also highlighted some challenges, including the need for continued cost management and the execution of its strategy at a brisk pace. However, the company's strong momentum and focus on driving new patient share, strong HCP patient identification, and ensuring LOQTORZI messaging is delivered at the time of treatment decision are expected to mitigate these challenges.

Conclusion

Coherus BioSciences' Q2 2024 earnings call underscores the company's strategic focus on oncology and its commitment to delivering innovative solutions in the immuno-oncology space. With the successful launch of LOQTORZI and a robust pipeline of promising drug candidates, Coherus is well-positioned for long-term growth and value creation for shareholders.