• Eugenica Product Sales (Q4 2024): $46.3 million, a 28% increase from $36.2 million in Q4 2023.
• Eugenica Product Sales (FY 2024): $206 million, a 62% increase from $127.1 million in FY 2023.
• Lot Torzi Net Revenue (Q4 2024): $7.5 million, a 29% increase quarter over quarter.
• Lot Torzi Net Revenue (FY 2024): $19.1 million.
• Cost of Goods Sold (FY 2024): $118 million, down from $159 million in 2023.
• Research and Development Expense (FY 2024): $93.3 million, a 15% decrease from $109.4 million in 2023.
• SG&A Expenses (FY 2024): $167.7 million, a 13% decrease from $192 million in 2023.
• Interest Expense (FY 2024): $27.2 million, a 33% decrease from $40.5 million in 2023.
• Cash and Cash Equivalents (End of 2024): $126 million.
• Projected Cash Post-Divestiture: $250 million on the balance sheet.

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

Release Date: March 10, 2025

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

Positive Points

• Coherus BioSciences Inc (NASDAQ:CHRS) successfully executed its four-part strategy in 2024, including driving top-line revenues, controlling expenses, advancing the innovative pipeline, and addressing debt overhang.
• The company is well-positioned for 2025 with a strategic transition to a fully integrated commercial stage innovative oncology company.
• The divestiture of the eugenica franchise is on track, with substantial progress made and expected completion in late Q1 or Q2.
• Coherus BioSciences Inc (NASDAQ:CHRS) has secured a promising pipeline of oncology candidates, including a first-in-class anti-IL27 agent and a highly selective cytolytic CCRA antibody.
• The company ended the year with $126 million in cash and expects to have $250 million on the balance sheet post-transaction, providing a strong financial position for future development efforts.

Negative Points

• Coherus BioSciences Inc (NASDAQ:CHRS) is not satisfied with its current stock price and aims to enhance investor appreciation and understanding of its value proposition.
• The divestiture of the eugenica franchise still requires FDA authorization to sell final packaged products from a new contract manufacturing organization.
• The company experienced a temporary supply interruption of Eugenica, impacting Q4 revenue trends.
• There is ongoing off-label use of Keytruda in the market, which Coherus BioSciences Inc (NASDAQ:CHRS) aims to overcome through increased awareness and education.
• The company anticipates a 30% headcount reduction post-divestiture, which may impact operations and require careful management.

Q & A Highlights

Q: With the shareholder voting tomorrow, are there any hurdles expected for the eugenica divestiture? Also, does the $250 million cash projection include cost savings from the 30% headcount reduction? A: Dennis Lanfear, CEO, stated there are no expected obstacles for the divestiture, with all necessary reviews completed. The $250 million cash projection does include savings from the headcount reduction, as explained by CFO Bryan McMichael, who detailed the financial adjustments leading to this projection.

Q: Regarding La Torzi, now that it has a preferred position in guidelines, where is the drug being used? A: Samir Goriauker, SVP of Immuno Oncology Marketing, explained that La Torzi is being used in a mix of recurrent, locally advanced, and first-line metastatic patients. The guidelines now clearly recommend chemo plus La Torzi as the preferred treatment, and physicians are expected to increase its use.

Q: What is the FDA looking to check for the labeling and packaging of the second supplier to approve the transaction? A: Dennis Lanfear, CEO, clarified that the FDA requires validation runs with the new line to ensure equipment functionality. The company has completed these runs and submitted the data, expecting a straightforward review process without the need for a facility visit.

Q: Can you provide expectations for the head and neck cancer data in the first half of this year? A: Rosh Dias, Chief Medical Officer, mentioned that they expect to report data from around 30-35 patients, including safety, early efficacy, and intra-tumoral biomarker data, at a major conference in the first half of the year.

Q: For the phase one CCRA Tori combo data, what intra-tumor biopsy data would be considered supportive for ongoing work in head and neck cancer? A: Theresa Lavallee, Chief Development Officer, stated they are looking for robust depletion of CCRA positive Tregs in the tumor and an increase in CD8 T-cells, which would indicate a shift towards immune activation, supporting further development.

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