Coherus BioSciences to Present Casdozokitug Data This Week
Taking a Look at Coherus BioSciences (CHRS).
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Keep an Eye on Strong Data
Later this week, it is expected that Coherus BioSciences (CHRS) will present final Phase 2 clinical data on Casdozokitug (also known as Casdozo) in combination with atezolizumab and bevacizumab for treating unresectable locally advanced or metastatic hepatocellular carcinoma this Friday, January 24th, at 11:30AM.
Previously, in January 2024, CHRS reported promising results from the lead-in portion of this Phase 2 trial, demonstrating a 38% objective response rate (ORR), including three complete responses (CR), when Casdozokitug was combined with atezolizumab and bevacizumab in treatment-naïve patients with unresectable HCC. It’s important to note this because these numbers are deemed competitive in this space right now. The ORR was 38%, with 11 out of 29 patients achieving durable objective responses, including 3 complete responses and 8 partial responses (1 unconfirmed). The median progression-free survival (PFS) was 8.1 months, and the disease control rate (DCR) was 58.6%. The triplet combination therapy demonstrated a favorable safety and tolerability profile, with side effects consistent with the known adverse events of atezolizumab and bevacizumab. These include fatigue, decreased appetite, nausea, hypertension, proteinuria, diarrhea, rash, fever, and infections. No SAEs were reported or known.
Metastatic hepatocellular carcinoma (HCC) is a form of liver cancer that has spread from its original site in the liver to other parts of the body. Hepatocellular carcinoma typically arises from the main type of liver cells, known as hepatocytes, and is often linked to chronic liver conditions such as cirrhosis, hepatitis B or C, and nonalcoholic fatty liver disease. When HCC becomes metastatic, it means the cancerous cells have broken away from the primary tumor in the liver and traveled through the bloodstream or lymphatic system to create new tumors elsewhere, commonly affecting the lungs, bones, and lymph nodes. This progression is especially concerning because it can significantly limit treatment options and worsen a patient’s prognosis. Treatment for metastatic HCC may include systemic therapies (like targeted drugs and immunotherapies), chemotherapy, or radiation to specific metastatic sites, in addition to supportive care aimed at maintaining liver function and quality of life. Early detection and intervention are crucial, as managing liver health and controlling the spread of the disease can improve outcomes for individuals diagnosed with this advanced form of liver cancer. This where Casdozo comes in, since HCC is often difficult to treat, new therapies like Casdozo aim to improve survival and reduce tumor progression by either boosting the body’s natural defenses against cancer cells or selectively inhibiting critical cancer-driving factors.
Right now, CHRS is trading at a steep discount, and its growing short interest doesn’t seem to be backed by a solid bearish argument. As a result, any positive news could spark a strong rebound—or at least bring the share price closer to a reasonable valuation. For this to happen, however, we’ll need to see an ORR that meets expectations for both efficacy and tolerability. If that occurs, the market is likely to view Casdozo as a top competitor in this space. In turn, CHRS’s valuation will hinge primarily on its pipeline data, overall liquidity/R&D investments, and realistic growth forecasts for its addressable markets. This will remain the case until Toripalimab, which is still ramping up, begins generating more meaningful revenue.
With short interest hovering around 29%-30%, the stock could be a coiled spring that’s ready to pop. Frustrations with the company’s management from past issues still linger, contributing to some of the short pressure, but the main short thesis seems to revolve around the debt narrative. The catch is that if Udenyca goes through, the company’s balance sheet will be wiped clean of the debt that’s been weighing it down. So, it looks like shorts are betting on future management slip-ups—a possibility in any business, but one that’s highly speculative. That makes shorting this stock a pretty shaky proposition. Personally, I plan to sell half my position depending on the data release.