Coherus Oncology (CHRS) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue was $70.8M, driven by a 30% sequential increase in UDENYCA and a 54% increase in LOQTORZI sales, despite a YoY decline due to divestitures of YUSIMRY and CIMERLI.

• UDENYCA accounted for 93.4% of Q3 net revenue, maintained #2 market share at 28–30%, and is expected to return to market growth in 2025.

• LOQTORZI sales reached $5.8M in Q3, with a 60% increase in treated patients and strong early-line adoption.

• Temporary UDENYCA supply interruption announced in September 2024, with production resuming in November and full restocking of 120,000 units by year-end.

• Completed divestitures of YUSIMRY and CIMERLI for $210M plus inventory, driving nine-month net income positive.

Financial highlights

• Q3 2024 net revenue: $70.8M (down from $74.6M YoY); nine months: $212.8M (up $47.1M YoY).

• Q3 2024 net loss was $10.8M ($0.09/share), improved from $39.6M ($0.41/share) in Q3 2023; non-GAAP net loss was $1.7M ($0.01/share).

• Nine-month 2024 net income was $79.2M, compared to a net loss of $158.2M in 2023, driven by divestiture gains.

• Gross margin for Q3 2024 was 71%, up from 56% YoY, due to lower COGS and divestitures.

• Cash and equivalents were $97.7M as of September 30, 2024.

Outlook and guidance

• UDENYCA expected to resume sales in late November to early December, with demand and market share acceleration projected in 2025.

• Q4 2024 net revenue expected to be significantly lower due to UDENYCA supply interruption; new CMO to double capacity in 2025 pending FDA approval.

• Combined 2024 R&D and SG&A expenses projected at $250–$260M, including ~$30M in stock-based compensation.

• Data readouts for CHS-114 and casdozokitug clinical trials expected in 2025–2026.

• Available cash and divestiture proceeds expected to fund operations for at least 12 months.