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 (CHRS, Financial) 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 (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 (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 (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.
