• Total Revenue: $65 million, a 10% increase year-over-year.
• UDENYCA Revenue: $50.9 million, a 19% increase quarter-over-quarter and a 60% increase over Q2 2023.
• LOQTORZI Revenue: $3.8 million, nearly doubled from $2 million in Q1.
• Net Loss: $12.99 million, or $0.11 per diluted share, compared to a net loss of $42.99 million, or $0.49 per diluted share in Q2 2023.
• Non-GAAP Net Loss: $16.4 million, or $0.14 per diluted share, compared to $32.89 million, or $0.38 per diluted share in Q2 2023.
• Cash and Cash Equivalents: $159.2 million as of June 30, 2024, compared to $117.7 million at year-end 2023.
• Cost of Goods Sold: $28.4 million, up from $24.8 million in Q2 2023.
• R&D Expense: $22 million, a 6% decrease from Q2 2023.
• SG&A Expense: $35.2 million, a 22% decrease from Q2 2023.
• Interest Expense: $5.3 million, a 46% decrease from Q2 2023.

• Warning! GuruFocus has detected 5 Warning Signs with CHRS.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Coherus BioSciences Inc (NASDAQ:CHRS) reported a 10% year-over-year increase in total sales for the second quarter, reaching $65 million.
• The company successfully launched LOQTORZI, its first commercial immuno-oncology agent, which demonstrated a profound survival advantage in nasopharyngeal carcinoma.
• UDENYCA franchise demand grew 25% in the quarter, with a significant increase in market share to 29%.
• Coherus BioSciences Inc (NASDAQ:CHRS) ended Q2 with $159 million in cash, cash equivalents, and investments, reflecting strong financial management.
• The company has achieved broad payer coverage for LOQTORZI, with nearly 100% of targeted medical benefit lives covered, including Medicare and commercial plans.

Negative Points

• The net loss for Q2 2024 was $12.99 million, although this was an improvement from the previous year's loss.
• The divestiture of CIMERLI resulted in a loss of a significant gross profit share.
• The company faces challenges in acquiring new patients for LOQTORZI, as many current patients are on off-label PD-1 regimens.
• There are substantial risks and uncertainties inherent in the clinical drug development process, which could impact future performance.
• The company is still in the early stages of penetrating the broader community setting for LOQTORZI, with a significant portion of the market treated in academic settings.

Q & A Highlights

Q: Can you give us any color on which types of patients youre treating with LOQTORZI in NPC? Are they primarily newly diagnosed patients or are you seeing switches from other patients on off-label PD-1s? And where are you with the payer coverage access? A: The NPC launch is delivering in line with expectations, with a heterogeneous mix of patients. We have patients in later lines of therapy receiving LOQTORZI as monotherapy, and early line patients who will have longer treatment durations. Payer coverage is nearly 100% across targeted medical benefit lives, including Medicare and commercial plans. The J-code enables electronic billing and faster reimbursement, removing operational barriers.

Q: Can you tell us more about the biggest contributor driving UDENYCA unit growth and how sustained this momentum might be? A: UDENYCA's growth is driven by the commercial launch of the on-body device, broad payer coverage, and disciplined ASP management. The on-body device allows competition across the entire pegfilgrastim market, and payer coverage has nearly doubled compared to 2023. We expect continued growth in the second half of 2024, with on-body being the primary growth driver.

Q: What differences would you expect to see from using toripalimab versus atezolizumab in the triplet for HCC? And what is your next Phase 3 plan after HCC? A: Toripalimab has shown a higher overall response rate and PFS compared to atezolizumab in previous studies. We expect toripalimab to be well-suited against atezolizumab, with casdozokitug adding increased benefit. For the next Phase 3, we are focusing on non-small cell lung cancer and HCC, building on early phase study activity.

Q: How much of the NPC market is treated in NCCN centers versus the community setting, and how long will it take to penetrate the broader community? A: About 60% of NPC in the U.S. is treated in academic NCCN settings, with 40% in the community. Our LOQTORZI business is about two-thirds in hospitals. We are focused on engaging community oncologists to drive new patient acquisition across both segments.

Q: What milestones and royalties are owed to Junshi for toripalimab, and what obligations do you have for its development? A: Junshi receives a $25 million approval milestone, with half already paid, and a 20% royalty on net sales. We are not obligated to share development costs unless we choose to. The royalty extends to any toripalimab sold in the U.S., regardless of indication.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.