Coherus Oncology (CHRS) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue was $65 million, up from $58.7 million in Q2 2023, driven by UDENYCA growth, LOQTORZI launch, and YUSIMRY contributions, despite divestitures.

• UDENYCA delivered its fifth consecutive quarter of top-line revenue growth, with net sales of $50.9 million, up 19% sequentially and 60% year-over-year.

• LOQTORZI, launched in January 2024, generated $3.8 million in Q2 sales and is now available in all 33 NCCN institutions.

• Completed divestitures of CIMERLI and YUSIMRY, generating $227.8 million in cash and significant gains.

• Ended Q2 with $159.2 million in cash, cash equivalents, and investments, strengthening the balance sheet.

Financial highlights

• Q2 2024 total net revenue was $65 million, including $58.5 million from product sales and $6.3 million from a nonrecurring upfront payment for LOQTORZI rights in Canada.

• Net loss for Q2 2024 was $12.9 million ($0.11 per diluted share), compared to $42.9 million ($0.49 per share) in Q2 2023.

• Non-GAAP net loss per share was $0.14, compared to $0.38 in Q2 2023.

• Gross margin for Q2 2024 was 56%, slightly down from 58% in Q2 2023, impacted by divestitures and royalty expiration.

• Cash and marketable securities totaled $159.2 million as of June 30, 2024, up from $117.7 million at year-end 2023.

Outlook and guidance

• Combined 2024 R&D and SG&A expense guidance is $250–$265 million, including ~$40 million in stock-based compensation.

• Net revenue for 2024 is expected to exceed 2023, led by UDENYCA and LOQTORZI growth, offset by CIMERLI and YUSIMRY divestitures.

• Gross margin anticipated to improve in 2024 due to expiration of UDENYCA royalties and lower profit share costs.

• Interest expense expected to decline following debt repayments.

• Guidance excludes effects of future acquisitions, collaborations, divestitures, and other unquantified transactions.