Coherus Oncology (CHRS) Morgan Stanley 24th Annual Global Healthcare Conference summary

Commercial performance and strategy

• LOQTORZI, a next-generation PD-1, is the only approved therapy for nasopharyngeal cancer in the U.S., with a $250 million market opportunity and a projected maximum annual revenue of $175 million at peak share.

• Quarterly sales reached $13.6 million, with expectations to surpass $15 million per quarter soon, covering commercial costs and SG&A, and aiming for $30+ million per quarter by late 2027.

• Company size has been reduced to about 140 employees, focusing on innovative oncology and maintaining a controlled cash burn.

• Plans include leveraging the sales force for additional products and pursuing collaborations, with selectivity for in-licensed or internally developed assets.

• Educational efforts target physicians to differentiate LOQTORZI from KEYTRUDA, emphasizing superior survival data and NCCN guideline positioning.

Pipeline and clinical development

• Tagmokitug, a CCR8-driven T reg depleter, is under investigation in six tumor types, including head and neck, GI tract (esophageal, gastric, CRC), and prostate cancer, with a focus on overcoming immune resistance.

• Proof-of-concept data showed T reg depletion led to CD8+ T cell infiltration and tumor reduction in head and neck cancer, supporting further studies.

• Tagmokitug is considered best-in-class due to high selectivity for CCR8, with manageable safety and promising tolerability compared to competitors.

• Clinical programs are designed to address PD-L1 resistance, combinability with chemotherapy, and conversion of cold to hot tumors, with enrichment signals in HPV+ and high CCR8-expressing patients.

• Data updates are expected soon, with decisions on advancing indications based on emerging efficacy and biomarker correlations.

IL-27 program and future outlook

• Casdozokitug, an anti-IL-27 antibody, is advancing in first-line hepatocellular carcinoma (HCC), showing a 38% ORR and 17% CR rate in early studies when added to standard of care.

• The ongoing controlled study compares two doses of casdozokitug plus tori-bev versus tori-bev alone, aiming to clarify dose response, safety, and contribution of components.

• Durability of response is a key focus, with biomarker analysis (IL-27 levels, ctDNA) planned to guide patient selection and early activity assessment.

• Casdozokitug offers portfolio diversification, balancing the broader potential of Tagmokitug with a focused, biomarker-driven approach in HCC.

• Financial strategy centers on reaching SG&A breakeven by end of next year, supported by commercial growth and milestone payments, with a disciplined approach to cash management and investor engagement.