Coherus BioSciences Releases Q4 2024 Earnings Results, Udenyca Closing Soon
Taking a Look at Coherus BioSciences (CHRS) Earnings Results.
Coherus’ Q4 & Full-Year 2024 Results
Yesterday Coherus BioSciences (CHRS) announced their Q4 and full-year 2024 earnings results with no specific guidance due to the complexity of Udenyca divestment which is expected to close either later this month or now early Q2 2025. Nothing major with this report but a couple things are worth highlighting which I’ll get to in the earnings breakdown and my take.
Executive Summary
Financial Highlights: CHRS delivered strong full-year results, with total revenue increasing 4% to $267M, despite divestitures. The company reported net income of $28.5M in 2024, a turnaround from a $237.9M loss in 2023. Q4 revenue was $54.1M, down from $91.5M in Q4 2023 due to asset sales. The Q4 net loss improved to $50.7M from $79.7M in the prior year.
Strategic Transformation: In 2024, CHRS completed its pivot to an oncology-focused company, selling its biosimilar franchises, including Udenyca. The company expects to close the Udenyca sale in late Q1 or early Q2 2025, which will leave it with $250M in cash and a streamlined structure, positioning it for future growth.
Financial Performance
Quarterly Performance: Q4 revenue was $54.1M, driven by $46.3M in Udenyca sales (+28% YoY) and $7.5M from Loqtorzi (+29% QoQ). The net loss of $50.7M was an improvement from $79.7M in Q4 2023.
Full-Year 2024 Performance: Total revenue reached $267M, with $206M from Udenyca (+62% YoY) and $19.1M from Loqtorzi. Net income was $28.5M, a significant improvement from a $237.9M loss in 2023.
Cash & Liquidity: Cash balance as of year-end 2024 was $126M. Following the Udenyca divestiture, cash is expected to increase to $250M, providing over two years of runway which should be enough to fund all assets.
Operating Expenses: COGS fell to $118M from $159M in 2023 due to divestitures and inventory adjustments. R&D expenses decreased 15% to $93.3M, and SG&A fell 13% to $167.7M.
Headcount Reduction: CHRS is reducing its workforce by 30%, bringing headcount to ~155 employees post-Udenyca divestiture, which will lower operating costs significantly.
Business & Operational Highlights
Udenyca Divestiture: Shareholders are set to vote on March 11, 2025, with an expected close in late Q1 or early Q2 2025. The sale will bring in $483M upfront, helping pay down $230M in convertible debt and $49M in royalty obligations.
Loqtorzi Performance: LOQTORZI sales grew 29% QoQ, reaching $7.5M in Q4 and $19.1M for the year. A 2.5% price increase was implemented.
Pipeline Developments: The IL-27 (casdozokitug) and CCR8 (CHS-114) programs are advancing in clinical trials. Casdozo reported a 38% ORR in HCC with a competitive PFS, while CHS-114 is entering Phase 1b for gastric cancer.
Strategic Outlook
CEO’s Commentary & Shareholder Perspective: CHRS management is dissatisfied with the stock price (which was one of the first things he said on the call), which they believe undervalues the company’s $250M cash position, Loqtorzi growth, and pipeline assets. The low valuation has fueled buyout speculation in my opinion (I’ll get to that below).
Growth Catalysts: Key drivers include Loqtorzi label expansion, ongoing pivotal trials, and upcoming 2025-2026 clinical readouts that could significantly increase valuation.
Opting out of guidance: Regarding financial guidance, CHRS chose not to provide official revenue or expense projections for 2025 due to several ongoing uncertainties. The primary factor is the pending divestiture of Udenyca, which is expected to close in late Q1 or early Q2 2025 and will significantly alter the company's revenue profile. Additionally, the commercial ramp-up of Loqtorzi remains in its early stages, and management is focused on driving uptake rather than committing to revenue targets prematurely.
My Take
The call itself was pretty uneventful. We got a small update on Loqtorzi’s price bump and the plan to keep scaling, a note about the headcount reduction, a quick mention of Casdozo, and a bit more detail on the Udenyca sale. But the most intriguing part, related/unrelated to the call, is CEO Denny Lanfear leaving breadcrumbs that seem to suggest a possible M&A deal on the horizon.
Loqtorzi
I was on the earnings call when an analyst brought up concerns about Keytruda being used off-label for NPC, mainly because it’s such a familiar name among doctors. While Keytruda is indeed popular, I still see Loqtorzi as having a real edge—it's the only FDA-approved treatment specifically for NPC and holds Preferred status in the NCCN guidelines. Thanks to its strong clinical trial results and unique regulatory approval, Loqtorzi seems poised to stand out so I’m not worried.
From what I’ve gathered, the company is going all-in on raising Loqtorzi’s profile by actively educating oncologists on its different mechanism of action and its approval for all lines of NPC therapy. Early feedback from physicians has apparently been fantastic, which suggests Loqtorzi could see rapid adoption as the go-to option in its approved setting. The company also reiterated that Loqtorzi’s market potential could reach anywhere between $150M and $250M annually (just on current indications)—higher than I initially anticipated. However, they maintain it’s still competitively priced compared to other PD-1 inhibitors, and with its standout clinical profile and guideline endorsements, doctors seem ready to get on board with it. Honestly, if Loqtorzi keeps expanding its indications and the sales team keeps crushing it, this franchise by itself might end up surpassing almost double the peak sales of Udenyca, even without any special situation. Far from this, but it’s possible down the road.
Headcount Reduction
This was mentioned vaguely in the past if I remember but when I was on the earnings call CHRS management talked about the headcount cuts following the Udenyca divestiture. They explained that around 50 Udenyca-related employees will be moving over to Accord BioPharma, and the total workforce will shrink by about 30%, bringing them down to around 155 people once everything is finalized. I guess this is all part of their push to focus purely on oncology—something they've been planning for a while.
When an analyst asked about any extra cost savings stemming from these layoffs, management made it clear that their projected $250M post-divestiture cash balance already accounts for those savings. They also emphasized again that getting rid of royalty obligations, on top of these workforce reductions, should extend their cash runway beyond two years, covering major clinical data milestones in 2025 and 2026. I’m not sure if my math is mathing on this but I’ll keep a neutral stance regardless.
Casdozo
From what I’ve gathered, CHRS recently kicked off a Phase 2 randomized trial for casdozo in first-line hepatocellular carcinoma (HCC), and it’s actively enrolling patients now. The plan is to enroll 72 patients and test two dose levels of casdozo alongside toripalimab and bevacizumab. The main goals include assessing safety, efficacy, and biomarker-driven insights, and ultimately figuring out the optimal dose for future pivotal trials. This builds on a previous Phase 2 study where casdozo showed some pretty compelling signs of efficacy—including a 38% ORR, a 17% complete response (CR) rate (improved), and progression-free survival (PFS) outcomes that beat out SOC benchmarks and peers when looking at their same development phases in liver cancer.
What really stood out to me is that these benefits were seen in both viral and non-viral HCC patients, which is a key differentiator in a very competitive treatment landscape. Still, despite the promising data, it’s just too early to make any definitive calls on casdozo’s full clinical potential. So, when you see “investors” making decisions on casdozo’s success, this can be ignored until data is matured. Eventhough the drug does look differentiated; more evidence is needed before anyone can confidently map out its future in later-stage trials. It’s simply way too premature. But this is something that is cooking with excitement in their pipeline nonetheless.
Udenyca Divestment
Here’s the latest I’ve gathered on CHRS and their Udenyca divestiture: they’re still planning to wrap things up, but the timeline has shifted slightly to possibly early Q2 2025 instead of late Q1. I found this odd but it’s not uncommon to extend closing because they are dealing with the FDA (and now legal issues, I’ll get to below). All the major regulatory boxes—SEC, Hart-Scott-Rodino, and CFIUS—are checked off, so the big remaining piece is the shareholder vote ending today & FDA authorizing it. The team sounds confident they will get the greenlight.
So, right now, which was even asked about on the call by an analyst because they found it odd extending the closing to early Q2 2025 too, the final hurdle before closing is getting the FDA’s approval for the sale of final packaged Udenyca from the new CMO responsible for labeling and packaging. CHRS has already submitted the required paperwork and believes it lines up with the FDA’s expectations (hopefully). They don’t seem worried about the approval, but they do acknowledge it’s a must-have before the transaction can officially close.
Last thing I want to mention here, since most of us already have a strong understanding about the franchise sale, is the 8-K submitted on March 4. CHRS provided additional disclosures regarding the Udenyca divestiture in response to legal challenges from stockholders. These legal actions, including lawsuits and demand letters, alleged that the company's proxy statement contained incomplete or misleading information about the transaction. To address these claims and maintain transparency, CHRS voluntarily supplemented its disclosures to avoid litigation delays or costs, ensuring a smooth approval process and timely transaction closure.
The company clarified that the litigation does not allege fraud or misrepresentation but rather focuses on requests for additional financial and strategic details about the sale. By proactively providing these supplemental disclosures, they aimed to reassure investors that no material information was omitted and that the transaction was being handled with full transparency. They emphasized that the Udenyca divestiture remains strategically necessary, as it positions them to become a pure-play oncology company, freeing up resources to focus on Loqtorzi’s commercial expansion and its immuno-oncology pipeline (or get acquired).
From what I’ve gathered in the filing, they really laid out the details on the Udenyca divestiture. It looks like J.P. Morgan officially kicked off the sales process after talking things over with the board, reaching out to multiple potential buyers and ultimately narrowing the field to about six seriously interested parties. The way they describe it, this was anything but a rushed move; they applied a systematic approach to make sure every logical suitor got a look at the asset.
As for the financials, J.P. Morgan ran a bunch of valuation models—everything from public trading multiples to precedent transaction analyses—trying to figure out the fairest price for the franchise. They ended up with an implied value range of roughly $205M to $1.06B based on projected 2025 revenue. The final deal came in at up to $558.4M (between the upfront cash and earnouts), which puts it nicely in the mid-to-upper part of that spectrum. So while the company isn’t claiming they got a “premium,” the numbers definitely suggest a competitive outcome for the sale.
They also spelled out what life will look like post-divestiture which we all know now: a projected $250M in the bank, the closure likely in Q2 2025, and about 50 employees tied to Udenyca moving on to the acquiring company—plus a 30% total headcount reduction on CHRS’ side. All of that’s in line with their broader game plan to focus more on immuno-oncology. Apparently, management had been thinking about this pivot for a while, and the disclosures show they did some legwork before J.P. Morgan formally launched the sale. By laying out these details, it seem they are eager to reassure investors that this was a well-executed, strategic move to refocus on what they see as their future: Loqtorzi, Casdozo, CHS-114, and everything else in the IO pipeline (or to get acquired entirely). So, for shareholders pursuing toward litigation, or attempting to, I understand their frustration which seems to stem from investors that are way underwater. The company did not have to do this but they did it anyway. With this transparency, I think investors should now be satisfied on the price tag.
Will Coherus Get Acquired?
This is definitely speculation, but the signs seem to be pointing in one direction—especially if you listen closely to management’s remarks and factor in the current wave of biotech M&A. That said, whether or not they actually get acquired, this still looks like a turnaround story with real potential, so I wouldn’t view it through a one-track lens.
The first breadcrumb is all about restructuring and cleaning up the balance sheet. CHRS sold off three franchises, two of which were clearly marked as “non-core” (Cimerli, Yusimry). Udenyca, on the other hand, was always considered a “core” asset. My personal take? Denny & Co made the call a while ago to streamline the company for a possible takeover by offloading Udenyca and doubling down on Loqtorzi. Sure, they could’ve kept Udenyca around, used Loqtorzi’s revenue to chip away at debt, and waited for both to mature. Instead, they chose to sell Udenyca and wipe the debt clean—something that makes total sense if you’re prepping to be acquired. Maybe they had no other choice for dealing with the debt, or maybe they’ve already been in talks about a buyout. If you want more evidence, just look at what management has been saying lately—like at the TD Cowen conference on March 4th or on their latest earnings call.
Denny made some pretty unusual comments at last week’s presentation:
“Anytime an external party offers a significant multiple over what investors reward you for, as a public CEO, you must closely consider it due to fiduciary responsibility.”
The fact that he spent about a minute around this is intriguing. Maybe he was just referring to Udenyca, or maybe he was hinting at CHRS getting bought outright in a smart/ethical way. Hard to say, but it sure doesn’t feel like a throwaway line.
Then on the earnings call, he expressed frustration in a way you rarely hear from CEOs:
“However, it must be said on a more macro level that we are certainly not satisfied with our current stock price.”
To me, that’s a big clue this could be about some kind of arbitrage play—CEOs typically avoid this kind of talk on earnings calls. And here’s where it all ties together so you don’t think I’m crazy: the same morning, Checkpoint Therapeutics (a direct competitor) announced it was getting acquired by Sun Pharma for $355M, which worked out to a 66% premium.
Checkpoint Therapeutics and CHRS go head-to-head in the immuno-oncology space, specifically in the PD-1/PD-L1 inhibitor market. CHRS has Loqtorzi (toripalimab), an anti-PD-1 monoclonal antibody already approved for NPC and poised for potential expansion into other cancer indications. Meanwhile, Checkpoint Therapeutics was behind UNLOXCYT (cosibelimab-ipdl), an anti-PD-L1 therapy that recently scored FDA approval for advanced cutaneous squamous cell carcinoma (cSCC).
Then came the big news: Sun Pharmaceutical Industries announced it’s scooping up Checkpoint Therapeutics for $355M—about $4.10 per share, which like mentioned was a 66% premium over Checkpoint’s share price right before the announcement. Sun Pharma is aiming to diversify its oncology and immunotherapy lineup, banking on UNLOXCYT’s potential to anchor its expansion. With Sun’s global commercial muscle, they plan on broadening UNLOXCYT’s reach, making sure more patients get access to innovative cancer treatments.
This move emphasizes the booming commercial potential of PD-1/PD-L1 inhibitors, with analysts expecting the market to continue to grow rapidly. Now that Sun Pharma is pushing UNLOXCYT and CHRS is ramping up Loqtorzi (plus its other pipeline projects), competition in next-generation IO is only going to heat up further. And there are many many biotech firms that are below their fair value, which is partly due to the harsh environment currently. Within this harsh environment there have been lots of companies participating in M&A.
So, the candidate that makes the most sense to me more than others, is Jazz Pharmaceuticals (JAZZ). Jazz is a global biopharma player with a strong track record in neuroscience, oncology, and rare diseases. Over the past decade, they’ve made some savvy acquisitions and ramped up product development, which helped them build a diverse pipeline spanning sleep disorders, epilepsy, and cancer. Right now, Jazz has a market cap around $8B-$10B, and with their Vision 2025 strategy, they’re aiming to hit $5B in annual revenue and secure at least five new product approvals by the end of the decade.
Here’s why they might look at acquiring a company like CHRS: Coherus has serious IO chops, especially with Loqtorzi (toripalimab), a PD-1 checkpoint inhibitor that could potentially get label expansions in multiple cancers. Jazz doesn’t really have a strong checkpoint inhibitor in its arsenal, so snapping up Loqtorzi would not only round out its oncology portfolio but also give them a stake in the booming PD-1/PD-L1 space. Plus, CHRS’ other pipeline assets—like Casdozo and CHS-114 (a CCR8 antibody)—could offer Jazz a longer-term growth platform in IO, an area they’re clearly interested in.
Here’s the thing though, Jazz has been pretty vocal about seeking acquisitions of all sizes, especially in oncology and rare diseases, where they see big opportunities for growth. Their $935M purchase of Chimerix shows how serious they are about broadening their cancer pipeline with innovative treatments for tough-to-treat malignancies. With solid cash flow and a clear focus on business development, Jazz does fit the profile of a likely acquirer for a pure-play oncology outfit like CHRS. If they’re serious about beefing up their IO offerings, CHRS seems like a very logical target with a now clean balance sheet post-Udenyca.