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Coherus Biosciences (CHRS)
NASDAQ:CHRS
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Coherus Biosciences
(NASDAQ:CHRS)
55Neutral
Positive Factors
Divestment
Divestiture of Udenyca removes debt overhang and gives Coherus operational focus on Loqtorzi.
Financial Stability
Funding in place to cover key catalysts through 2026 ensures financial stability and supports future growth initiatives.
Product Launch
Loqtorzi's launch is making solid progress with growing sales and increased new account purchases.
Negative Factors
Net Loss
Non-GAAP net loss of $0.28 per share in Q4 was worse than our forecast of $0.12 loss per share.
Revenue Performance
Q4 revenue was slightly below our estimate.
Supply Chain Disruption
The major focus of the call was the CMO supply chain disruption, which management announced will last approximately three weeks longer than expected.
Coherus Biosciences (CHRS) vs. S&P 500 (SPY)
Market Cap
$97.19M
Dividend YieldN/A
Average Volume (3M)1.86M
Price to Earnings (P/E)4.8
Beta (1Y)2.37
Revenue Growth3.78%
EPS GrowthN/A
CountryUS
Employees228
SectorHealthcare
Sector Strength71
IndustryBiotechnology
Share Statistics
EPS (TTM)0.17
Shares Outstanding115,896,850
10 Day Avg. Volume2,063,169
30 Day Avg. Volume1,864,451
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.45
Price to Cash Flow (P/CF)1.00
P/FCF Ratio0.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside733.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Coherus Biosciences Business Overview & Revenue Model
Company DescriptionCoherus BioSciences, Inc., a biopharmaceutical company, focuses on the biosimilar and immuno-oncology market primarily in the United States. The company markets UDENYCA, a biosimilar to Neulasta, a long-acting granulocyte stimulating colony factor in the United States. Its pipeline products include biosimilars of Humira, Avastin, and Lucentis. The company also develops Toripalimab, a novel anti-PD-1 antibody for second-line treatment of melanoma in China; Bevacizumab biosimilar; and CHS-1420, an anti-TNF product candidate, as an adalimumab biosimilar; Ranibizumab biosimilar. Coherus BioSciences, Inc. has license agreements with Selexis SA; AbbVie, Inc.; Pfizer, Inc.; Bioeq AG; Innovent Biologics (Suzhou) Co., Ltd.; and Junshi Biosciences. The company was formerly known as BioGenerics, Inc. and changed its name to Coherus BioSciences, Inc. in April 2012. Coherus BioSciences, Inc. was incorporated in 2010 and is headquartered in Redwood City, California.
How the Company Makes MoneyCoherus BioSciences generates revenue primarily through the sale of its biosimilar products. The company's revenue model involves the development, manufacturing, and commercialization of biosimilars, which are essentially equivalent versions of existing biologic drugs that have lost patent protection. Key revenue streams include direct sales of these biosimilars to healthcare providers and distributors. Coherus also enters into strategic partnerships with other pharmaceutical companies to enhance its market reach and distribution capabilities, thereby contributing to its earnings. As patents of various branded biologics expire, Coherus capitalizes on these opportunities by introducing cost-effective biosimilar alternatives, thus driving its revenue growth.
Coherus Biosciences Financial Statement Overview
Summary
Coherus Biosciences is facing financial challenges, particularly in balance sheet strength and operational cash flow. Improvements in revenue growth and net income provide a positive outlook, but the zero stockholders' equity presents a significant concern. Continued focus on revenue growth and cash flow management will be crucial for future stability.Income Statement
The income statement shows some challenges in profitability, with negative EBIT and EBITDA margins in recent years. However, there is a positive revenue growth trajectory from 2023 to TTM (Trailing-Twelve-Months), indicating potential recovery. Net profit margin has shifted to positive in TTM, suggesting improvements in cost management or other operational efficiencies.45
Neutral
Balance Sheet
The balance sheet highlights significant concerns, with zero stockholders' equity in TTM and a history of negative equity in previous years, indicating potential financial instability. The absence of total debt in TTM is a positive indicator, but the lack of equity is a major risk.30
Negative
Cash Flow
Cash flow analysis shows improvement with a significant increase in investing cash flow and a reduction in negative free cash flow. Operating cash flow remains negative, which could be a risk if not addressed. However, the positive trajectory in free cash flow growth is a strength.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 266.96M | 257.24M | 211.04M | 326.55M | 475.82M | 356.07M | Gross Profit |
| 180.57M | 94.46M | 140.96M | 268.96M | 438.16M | 338.99M | EBIT |
| -104.87M | -203.20M | -256.88M | -263.86M | 156.32M | 107.77M | EBITDA |
| -82.90M | -193.94M | -255.58M | -260.69M | 161.84M | 111.03M | Net Income Common Stockholders |
| 28.51M | -237.89M | -326.63M | -306.32M | 132.24M | 89.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 125.99M | 117.75M | 191.68M | 417.19M | 541.16M | 177.67M | Total Assets |
| 448.53M | 629.60M | 480.85M | 679.33M | 841.65M | 408.93M | Total Debt |
| 0.00 | 480.84M | 471.06M | 408.28M | 404.02M | 178.39M | Net Debt |
| -125.99M | 377.95M | 407.51M | -8.91M | -137.13M | 718.00K | Total Liabilities |
| 0.00 | 823.03M | 618.26M | 581.61M | 560.67M | 303.71M | Stockholders Equity |
| 0.00 | -193.43M | -137.42M | 97.73M | 280.97M | 105.21M |
| Cash Flow | Free Cash Flow | ||||
| -20.44M | -175.17M | -243.16M | -38.72M | 147.09M | 15.46M | Operating Cash Flow |
| -20.44M | -174.88M | -241.12M | -37.43M | 154.15M | 28.36M | Investing Cash Flow |
| 230.32M | 144.64M | -166.85M | -138.41M | -14.40M | -12.73M | Financing Cash Flow |
| -186.97M | 69.60M | 54.33M | 51.88M | 223.95M | 89.37M |
Coherus Biosciences Technical Analysis
Negative
0.84
Price Trends
1.09
Negative
1.19
Negative
1.25
Negative
Market Momentum
-0.06
Positive
35.72
Neutral
7.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHRS, the sentiment is Negative. The current price of 0.84 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 1.09, and below the 200-day MA of 1.25, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.72 is Neutral, neither overbought nor oversold. The STOCH value of 7.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHRS.
Coherus Biosciences Risk Analysis
Coherus Biosciences disclosed 68 risk factors in its most recent earnings report. Coherus Biosciences reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coherus Biosciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $344.26M | ― | 40.36% | ― | 13.57% | 89.73% | |
55 Neutral | $97.19M | 4.81 | 0.51% | ― | 3.78% | ― | |
52 Neutral | $5.67B | ― | -31.26% | ― | 104.04% | 87.80% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 19.94% | 1.20% | |
46 Neutral | $52.72M | ― | -273.36% | ― | 194.23% | 45.50% | |
42 Neutral | $97.33M | ― | -54.21% | ― | -78.55% | -0.92% | |
26 Underperform | $40.49M | ― | 260.68% | ― | -33.81% | 23.02% |
* Healthcare Sector Average
Performance Comparison
CHRS
Coherus Biosciences
0.84
-1.56
-65.00%
AGEN
Agenus
1.60
-10.15
-86.38%
FATE
Fate Therapeutics
0.85
-6.23
-87.99%
HRTX
Heron Therapeutics
2.26
-0.45
-16.61%
BPMC
Blueprint Medicines
88.72
-7.70
-7.99%
ADAP
Adaptimmune Therapeutics
0.21
-1.26
-85.71%
Coherus Biosciences Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -19.23% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in revenue growth, strategic transitions, and pipeline expansion, but also acknowledged challenges such as supply interruptions, market penetration issues for LOQTORZI, and dissatisfaction with the current stock price.Highlights
Record UDENYCA Sales Increase
UDENYCA net product sales for Q4 were $46.3 million, an increase of 28% compared to $36.2 million for Q4 2023. For fiscal year 2024, UDENYCA net sales were $206 million, an increase of 62% compared to $127.1 million for fiscal year 2023.
Successful Strategic Transition and Debt Reduction
Coherus achieved key strategic objectives including a $250 million cash position post-transaction, reducing $480 million in debt, and divesting at least $800 million in assets or commitments.
LOQTORZI Revenue Growth
LOQTORZI net revenue was $7.5 million in Q4, a 29% increase quarter-over-quarter. Net revenue for fiscal year 2024 was $19.1 million.
Promising Pipeline Acquisitions
Coherus acquired a promising pipeline through the acquisition of Surface Oncology for $40 million, including assets like the first-in-class anti-IL-27 agent, casdozokitug, and a cytolytic CCR8 antibody, CHS-114.
Lowlights
Temporary Supply Interruption of UDENYCA
Q4 2024 COGS included a $12 million charge due to a write-down of UDENYCA inventory that did not meet acceptance criteria, related to a temporary supply interruption.
Challenges with LOQTORZI Market Penetration
LOQTORZI faced challenges in market penetration due to lack of awareness, particularly in community settings, and competition from off-label use of Keytruda.
Stock Price Dissatisfaction
Despite strategic progress, the company expressed dissatisfaction with the current stock price, indicating challenges in investor perception.
Company Guidance
During the Coherus BioSciences Q4 and full year 2024 earnings call, the company provided several metrics and key guidance. Coherus reported UDENYCA net sales of $46.3 million for Q4 2024, a 28% increase compared to Q4 2023, with fiscal year 2024 sales totaling $206 million, a 62% rise from the previous year. LOQTORZI net revenue for Q4 was $7.5 million, marking a 29% increase quarter-over-quarter, with fiscal year 2024 revenue at $19.1 million. The company anticipates having $250 million in cash post-UDENYCA divestiture, projecting a cash runway beyond two years. A 30% headcount reduction is expected, with 50 employees transferring to the buyer of the divestiture. Coherus also highlighted their strategic focus on maximizing revenues with LOQTORZI, expanding its indications, and advancing their proprietary pipeline, including key assets like casdozokitug and CHS-114, aiming at a potential $15 billion sales opportunity when combined with LOQTORZI.Coherus Biosciences Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Coherus Biosciences Announces UDENYCA Divestiture and Revenue Outlook
Neutral
Jan 13, 2025
Coherus BioSciences has announced a temporary allocation of its UDENYCA product due to strong demand. The company expects its 2024 total net revenues to be between $255 million and $260 million, with Q4 revenues projected at $49 million to $54 million. Coherus plans to divest its UDENYCA franchise for up to $558.4 million to repay its $230 million convertible notes due in 2026, extending its cash runway beyond two years. The divestiture and financial plans are subject to customary conditions and shareholder approval, indicating a strategic shift to strengthen its financial position.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.