Coherus BioSciences Wins FDA Approval
Taking a Look at Coherus' (NYSE: CHRS) Toripalimab Approval, Weekly Activity, & Portfolio Update
It's been a rollercoaster week for investors. With so much uncertainty in the markets, it's tough for even seasoned investors to stick to their game plans. But here's some good news amidst the chaos: Coherus BioSciences (CHRS), a company I've been watching and invested in for a while, just got a big thumbs-up from the FDA for their drug, Toripalimab. This is a big deal. The company's stock took a hit in the past because of delays with this drug, combined with some other business decisions, and Wall Street being stubborn/misunderstanding the market for biosimilars. But with this recent FDA approval, things are looking up. Let's dive into why this news is so important.
FDA Approval of LOQTORZI (Toripalimab)
Coherus BioSciences, in collaboration with Junshi Biosciences, recently celebrated a significant achievement. Their drug, LOQTORZI (Toripalimab), received a nod from the U.S. Food and Drug Administration (FDA) as a treatment for Nasopharyngeal Carcinoma (NPC). This cancer, originating behind the nose near the base of the skull, has been a tough opponent for medical practitioners, but LOQTORZI emerges as the first FDA-endorsed contender to challenge it (huge!). What's even more commendable is LOQTORZI's versatility. It can be combined with certain chemotherapies for those newly diagnosed with advanced NPC or used on its own for those who have experienced progression after other treatments. Two studies, JUPITER-02 Phase 3 and POLARIS-02 Phase 2, showcased LOQTORZI's ability to extend patients' lives and significantly reduce the chances of the disease progressing or leading to death, compared to chemotherapy alone.
Denny Lanfear, the CEO of Coherus, believes that LOQTORZI, being a new-age PD-1 inhibitor, is crucial for the company's strategy in fighting cancer. The exciting part is that Coherus is now focusing on developing LOQTORZI to tackle multiple tumor types, potentially assisting a broader spectrum of patients. Healthcare professionals share the same enthusiasm. Jong Chul Park from Massachusetts General Hospital Cancer Center sees LOQTORZI as a game-changer for NPC patients, emphasizing its efficacy when combined with chemotherapy. Patients and healthcare providers can anticipate LOQTORZI's availability in the U.S. by early 2024.
What’s Next?
This FDA approval marks a transformative moment for CHRS. Pioneers in the biotech world, their groundbreaking work on LOQTORZI sets a new standard in cancer care. For many patients battling NPC, this offers not just a treatment but a beacon of hope. The future looks bright for CHRS as they continue to innovative solutions in the oncology arena.
As I've previously highlighted (see archive), the journey of this company has been a very bumpy ride. While some reasons for its volatility might be valid, I personally feel most are unwarranted. With four products in their portfolio now - YUSIMRY, CIMERLI, UDENCYA, and LOQTORZI - the future looks promising. Especially considering that two of these have just begun commercialization, I anticipate a strong revenue stream. My prediction is that most of these products will outperform expectations, given the conservative estimates and the broader biosimilar market being undervalued. Going forward, it's essential to monitor their partnership strategies, commercialization plans, and progress towards profitability. It's worth noting that LOQTORZI is slated for availability only from Q1 2024.
Long-time followers will recall my strong buy of CHRS when it was below $5/share. The dips below $3/share seemed irrational, and although I considered expanding my position, I'm currently content with my holdings. However, if the market continues to act irrationally, I will not hesitate to consolidate. My belief in the company remains very high, and I'm hopeful that the upcoming earnings report will bolster investors' confidence and provide a clearer picture of what lies ahead.
Weekly Activity (October 23rd-27th)
Nothing this week, but I do plan on adding to my cash position this upcoming week.