Analyst Sees A Multibagger, Initiates Coverage On This 'Top Notch Biosimilar Business'

Truist initiated coverage on Coherus BioSciences Inc CHRS with a Buy rating and a price target of $24.

The analyst notes the company's growing biosimilar franchise with a track record of taking share in competitive markets such as Amgen Inc's AMGN Neulasta.

It writes that following stock pullback due to COVID-related issues, this is a great entry point into the stock ahead of new biosimilar launches. 

Citing the management's extensive experience in part B commercialization and successful track record with a significant share in the pegfilgrastim market, Truist expects the company to grab significant market share with their launches in multi-billion dollar markets.

The company's toripalimab has shown efficacy in PD-L1 low patients in multiple trials, but the expectations are low for this drug as the trials are conducted in China.

Reproduction of efficacy results in PD-L1 low patients in US-based studies should validate Tori's differentiated activity and serve as a POC for future partnerships for combo studies.

The company's strategy to use funds from biosimilar business to create a differentiated oncology franchise has merits as it should allow long-term business expansion and revenues. 

Price Action: CHRS shares are up 5.39% at $7.62 on the last check Monday.