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Coherus BioSciences, Inc. (CHRS)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 net revenue was $54.144M, down year-over-year due to biosimilar divestitures, but supported by UDENYCA ($46.278M) and LOQTORZI ($7.522M); GAAP diluted EPS was $(0.44), non-GAAP diluted EPS was $(0.28) .
  • LOQTORZI revenue grew 29% quarter-over-quarter to $7.5M; NCCN guidelines upgraded LOQTORZI to Preferred across lines, positioning for sustained adoption in NPC .
  • Management reiterated the UDENYCA divestiture timeline (late Q1/early Q2 2025) and projected post-close cash of ~$250M with >2-year runway, enabling pipeline execution and reducing debt overhang; headcount to be cut ~30% to ~155 .
  • Near-term stock catalysts: special meeting approval and FDA packaging authorization for UDENYCA close, continued LOQTORZI uptake under NCCN Preferred status, and 1H 2025 data readouts for CHS-114 in HNSCC and NSCLC combination progress with casdozokitug .

What Went Well and What Went Wrong

What Went Well

  • UDENYCA sales rebounded to $46.3M (+28% YoY) in Q4 as supply resumed in November; 97% of pre-interruption customers returned and exit share reached 22% .
  • LOQTORZI revenue increased 29% QoQ to $7.5M; NCCN designated LOQTORZI as the only Preferred regimen for NPC first line (Category 1) and in later lines, driving broader account uptake (+37% new purchasing accounts in Q4) .
  • Strategic transformation advancing: “We will put about $250 million in cash on the balance sheet at transaction close” (CEO) and focus investors on the oncology value proposition post-divestiture .

What Went Wrong

  • Q4 COGS of $33.9M included a $12M UDENYCA inventory write-down; overall net loss widened to $(50.7M) as divestitures reduced biosimilar contributions .
  • LOQTORZI share of voice was temporarily impacted by UDENYCA supply interruption and field force restructuring ahead of divestiture close, slowing near-term ramp .
  • Estimates comparison unavailable from S&P Global this quarter; inability to benchmark against consensus constrains external “beat/miss” framing (see Estimates Context) (S&P Global consensus data unavailable due to access limits).

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Net revenue ($USD Millions)$65.0 $70.774 $54.144
Cost of goods sold ($USD Millions)$28.4 $20.741 $33.858
Net income (loss) ($USD Millions)$(12.9) $(10.751) $(50.696)
GAAP Diluted EPS ($USD)$(0.11) $(0.09) $(0.44)
Non-GAAP Diluted EPS ($USD)$(0.14) $(0.01) $(0.28)

Segment/Product Revenue

ProductQ2 2024Q3 2024Q4 2024
UDENYCA ($USD Millions)$50.9 $66.1 $46.278
LOQTORZI ($USD Millions)$3.8 $5.8 $7.522
CIMERLI ($USD Millions)——$0.100
YUSIMRY ($USD Millions)——$0.033
Total net product revenue ($USD Millions)$58.5 —$53.933

Key KPIs

KPIQ2 2024Q3 2024Q4 2024
UDENYCA market share (%)29% 28% 15% (exit 22%)
LOQTORZI new accounts growth q/q (%)——37%
NCCN institutions using LOQTORZI (%)——~80%
LOQTORZI price increase (%)——2.46%

Notes: “—” indicates not disclosed in source materials for that period.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Combined R&D + SG&A ($USD Millions)FY 2024$250–$260 Actual GAAP R&D + SG&A $261 Achieved near high end
HeadcountPost-UDENYCA close~225 employees ~155; ~30% reduction with ~50 transferring Lowered
Post-close cashImmediately post transaction—~$250M cash; runway >2 years New outlook
UDENYCA packaging/labeling 2nd CMO1H 2025Start saleable product by end-2024; commercial supply Q1’25 subject to FDA Saleable product late Q1/early Q2’25 subject to FDA authorization Timing refined
2025 expense guidance2025—Not guiding until Q1 call in May Deferred

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
UDENYCA supply & divestitureQ3: CMO resuming final packaging; ~120k units in 5 weeks; second CMO testing; target Q1’25 commercial supply subject to FDA Production resumed Nov; allocations removed Jan–Feb; divestiture approvals secured; pending FDA validation for second CMO; close late Q1/early Q2 Improving supply; strategic exit nearing completion
LOQTORZI adoption & NCCNQ2: Access at all 33 NCCN institutions; near-100% payer medical benefit coverage; J-code effective July 1 ; Q3: +54% QoQ revenue to $5.8M Q4 revenue $7.5M (+29% QoQ); NCCN “Preferred” in 1L and later; ~80% NCCN institutions used; +37% new accounts; pricing +2.46% Strengthening positioning and uptake
Casdozokitug (IL‑27)Q2: Planning randomized Phase 2 tori+bev+casdozo in 1L HCC; NSCLC combo recruiting ASCO-GI final 1L HCC data: ORR 38% and CR 17% with atezo+bev+casdozo; tori+bev+casdozo randomized study ongoing; H1’26 data expected Positive efficacy signals; advancing
CHS‑114 (CCR8)Q2: Dose escalation completed; plan HNSCC expansion; gastric Phase 1b start Q1’25 Report HNSCC monotherapy/combination safety/biomarkers in 1H’25; gastric Phase 1b opening; 1H’26 data Progressing to optimization
Capital structureQ2: Paid off $250M term loan; new $38.7M term loan; revenue rights sold; cash $159.2M Post-close plan to repay $230M converts and $48M UDENYCA royalties; projected $250M cash Deleveraging; liquidity improved
Regulatory/manufacturingQ3: FDA authorization needed for second CMO; validation runs underway FDA review of validation data; confirmation no facility visit needed Clear path; pending sign-off

Management Commentary

  • “We will put about $250 million in cash on the balance sheet at transaction close to continue our development efforts through key data milestone readouts in 2025 and 2026.” – CEO Dennis Lanfear .
  • “LOQTORZI… the only NCCN-preferred regimen for metastatic and recurrent NPC patients… we expect that LOQTORZI will achieve a dominant market share position in NPC valued at about $150 million to $200 million.” – SVP Sameer Goregaoker .
  • “COGS of $33.9 million in the fourth quarter 2024… includes a $12 million charge for the write-down of UDENYCA inventory.” – CFO Bryan McMichael .
  • “Customers who represented 97% of UDENYCA volume pre-supply interruption have returned to ordering UDENYCA… exit share of 22%.” – CCO Paul Reider .

Q&A Highlights

  • UDENYCA close conditions: FDA required specific validation runs for the second packaging/labeling line; sign-off is by data review (no site visit) .
  • Cash math and headcount: ~$250M post-close derived from $126M YE cash + $483M upfront proceeds less $230M converts, $48M royalties and fees; employees to ~155 with ~50 transferring .
  • LOQTORZI pricing: A ~2.46% price increase was implemented .
  • LOQTORZI usage: Mix across recurrent locally advanced, 1L metastatic, and some 2L; majority in earlier lines as label breadth supports .
  • Off-label I-O: Awareness ~40% in community; program focused on raising NCCN guideline awareness to displace chemo-only and off-label PD‑1 usage .

Estimates Context

  • S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable to us this cycle due to data access limits; as a result, we cannot provide a formal “beat/miss” vs consensus comparison at this time (S&P Global consensus data unavailable due to access limits).
  • Company’s preliminary slide (Jan 13) indicated expected Q4 net revenues of $49–$54M and LOQTORZI $7–$8M; reported Q4 net revenue was $54.144M and LOQTORZI $7.522M, aligning with the high end of the company’s preliminary ranges .
  • Where estimates may adjust: NCCN “Preferred” status for LOQTORZI and visible Q4 new account growth could support upward revisions to LOQTORZI 2025 trajectory; divestiture close and post-close cash/debt changes may alter OIE and share count assumptions .

Key Takeaways for Investors

  • Divestiture milestone: With SEC/HSR/CFIUS complete and only FDA packaging/labeling authorization outstanding, UDENYCA’s sale is tracking to late Q1/early Q2 close; post-close ~$250M cash and reduced debt are meaningful de-risking catalysts .
  • LOQTORZI ramp under NCCN Preferred: Strong Q4 momentum and enhanced guideline positioning should support continued patient acquisition and duration-driven revenue compounding over 3–4 years .
  • Supply normalization: UDENYCA supply resumed in November with allocation removal by February; expect legacy customers to normalize ordering into 2025; watch exit share progression .
  • Pipeline readouts: CHS‑114 HNSCC biomarker/safety data in 1H 2025 and casdozokitug HCC triplet study data in 1H 2026 are key clinical inflection points; NSCLC focus on squamous histology progressing .
  • P&L watch items: Q4 includes $12M UDENYCA inventory write-down within COGS; non-GAAP loss narrowed vs prior year; monitor OpEx discipline post-headcount reduction .
  • Trading implications: Near-term moves likely tied to UDENYCA close timing/FDA sign-off and continued LOQTORZI uptake; medium-term thesis hinges on guideline-driven LOQTORZI dominance and pipeline validation to expand toripalimab-based combinations .
Citations embedded per metric and statement.