Why Is Coherus BioSciences Stock Trading Higher On Tuesday?

On Tuesday, Coherus BioSciences, Inc. CHRS entered into an asset purchase agreement with Intas Pharmaceuticals Ltd for the divestiture of the Udenyca (pegfilgrastim-cbqv) franchise for up to $558.4 million.

The deal consideration includes an upfront payment of $483.4 million, to be adjusted for inventory at the close, and $75 million in potential net sales milestone payments.

Coherus plans to use a portion of the transaction proceeds to fully repay the company’s $230 million in existing convertible notes due April 2026 and $49.1 million to buy out certain royalty obligations related to Udenyca.

“The proposed divestiture of Udenyca represents the successful execution of our strategy to focus R&D and commercial resources on Coherus’ innovative immuno-oncology portfolio and to strengthen our financial position,” said Denny Lanfear, Coherus chairman and chief executive officer.

The proposed transaction is expected to close by the end of Q1 2025.

Coherus intends to strengthen and sharpen its focus on advancing its immuno-oncology portfolio in combination with Loqtorzi, a next-generation, differentiated PD-1 marketed in the U.S. in two indications.

Additional partnerships evaluating Loqtorzi with other cancer agents are planned for 2025.

The company plans to initiate a Phase 2 trial of casdozokitug/toripalimab/bevacizumab in first-line (1L) hepatocellular carcinoma (HCC) in Q4 2024, with final data from Phase 2 trial of casdozokitug/atezolizumab/bevacizumab in 1L HCC in Q1 2025, and data from its Phase 1 study of casdozokitug/toripalimab in second to fourth line (2-4L) non-small cell lung cancer (NSCLC) in 1H 2025.

Coherus plans to:

Report Phase 1 monotherapy biopsy data and CHS-114/toripalimab combination safety data in head and neck squamous cell carcinoma (HNSCC) in 1H 2025.
Initiate a Phase 1b CHS-114/toripalimab combination dose optimization study in 2L head and neck squamous cell carcinoma in Q1 2025, with a first data readout expected in Q2 2026.
Initiate a Phase 1b CHS-114/toripalimab combination dose optimization study in 2L gastric cancer in Q1 2025, with a first data readout expected in Q2 2026.

Earlier this year, Coherus BioSciences divested its Cimerli ophthalmology franchise to Sandoz Group AG SDZNY SDZXF for $170 million plus an additional amount for inventory.

Price Action: CHRS stock is up 41.6% at $1.94 at last check Tuesday.

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