By Denny Jacob
Coherus BioSciences shares rose in premarket trading after the company disclosed a divested franchise that would bring in up to $588.4 million.
Shares were trading 22% higher at around $1.67. The stock is down 59% on the year.
The commercial-stage biopharmaceutical company said it reached an agreement with Intas Pharmaceuticals for the divestment of its Udenyca franchise. The agreement includes an upfront payment of $483.4 million and $75 million in potential sales milestone payments.
Coherus said it plans to use a portion of the payment to fully repay the entirety of its $230 million in existing convertible notes due in April 2026, among other expenses.
Chief Executive Denny Lanfear said the deal positions Coherus to maximize the opportunity ahead for Loqtorzi, an FDA-approved treatment for nasopharyngeal carcinoma.
The proposed transaction is expected to close by the end of the first quarter of 2025.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
December 03, 2024 07:40 ET (12:40 GMT)
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