erus BioSciences(US:CHRS)2025-05-12 20:59Financial Performance - Net revenue for the three months ended March 31, 2025, was $7.6 million, a significant increase from $2.3 million in the same period of 2024, representing a growth of approximately 229%[13] - The net loss from continuing operations for Q1 2025 was $47.4 million, compared to a loss of $68.0 million in Q1 2024, indicating an improvement of approximately 30%[13] - The company reported a net loss of $56.6 million for Q1 2025, compared to a net income of $102.9 million in Q1 2024, reflecting a significant shift in financial performance[13] - Coherus reported a net loss of $56.569 million for the three months ended March 31, 2025, compared to a net income of $102.875 million for the same period in 2024[18] - The Company reported a basic and diluted net loss per share of $0.49 for the three months ended March 31, 2025, compared to a net income per share of $0.91 for the same period in 2024[108] Expenses and Cost Management - Total costs and expenses decreased to $53.0 million in Q1 2025 from $70.1 million in Q1 2024, a reduction of about 24%[13] - Research and development expenses for Q1 2025 were $24.4 million, down from $28.4 million in Q1 2024, a decrease of about 14%[13] - Selling, general and administrative expenses also decreased to $26.0 million in Q1 2025 from $40.2 million in Q1 2024, a reduction of approximately 35%[13] - Stock-based compensation expense totaled $5,046,000 for the three months ended March 31, 2025, down from $6,816,000 for the same period in 2024[106] Cash and Assets - Cash and cash equivalents decreased to $82.4 million as of March 31, 2025, down from $126.0 million at the end of 2024, a decline of about 35%[12] - Total assets decreased to $371.1 million as of March 31, 2025, from $448.5 million at the end of 2024, a reduction of approximately 17%[12] - The company had cash, cash equivalents, and restricted cash of $82.674 million at the end of March 31, 2025, down from $260.227 million at the end of March 31, 2024[18] - Total current assets were $310.175 million as of March 31, 2025, compared to $341.583 million at December 31, 2024, reflecting a decrease of approximately 9%[12] Liabilities and Deficits - The company has a total stockholders' deficit of $183.5 million as of March 31, 2025, compared to a deficit of $132.0 million at the end of 2024[12] - The company has total liabilities of $554.536 million as of March 31, 2025, slightly down from $580.523 million at December 31, 2024[12] - The total stockholders' deficit increased to $183.470 million as of March 31, 2025, from $131.990 million at the end of December 31, 2024[18] Divestiture and Future Payments - Coherus completed the divestiture of the UDENYCA business to Intas Pharmaceuticals for an upfront cash consideration of $483.4 million, including $118.4 million for product inventory[20] - The company anticipates potential future payments of $37.5 million related to the divestiture of the UDENYCA franchise, contingent on post-closing net sales[7] - The company is eligible for two additional earnout payments of $37.5 million each based on UDENYCA's net sales performance post-divestiture[20] Clinical Development and Pipeline - LOQTORZI was approved by the FDA for the treatment of metastatic or recurrent locally advanced nasopharyngeal carcinoma, with the launch in the U.S. on January 2, 2024[21] - The company is developing casdozokitug, which received orphan drug designation for hepatocellular carcinoma, currently in three ongoing clinical studies[22] - CHS-114, another clinical-stage candidate, is being evaluated in combination with LOQTORZI for advanced solid tumors and head and neck squamous cell carcinoma[25] - Coherus plans to initiate a first-in-human clinical study for CHS-1000, an investigational antibody targeting human ILT4, subject to further evaluation[26] Revenue Recognition and Sales - LOQTORZI generated net product revenue of $7.348 million in the first quarter of 2025, compared to $1.988 million in the first quarter of 2024[48] - McKesson Corporation accounted for 46% of total gross product revenues in Q1 2025, up from 29% in Q1 2024, indicating a shift in customer revenue distribution[48] - The company recognizes revenue from vaccine sales to the U.S. federal government for stockpiling, which allows for revenue recognition even if other criteria are not met[40] Inventory and Reserves - The balance of chargebacks and discounts for prompt payment as of March 31, 2025, was $68.915 million, down from $110.778 million at the end of 2024[51] - The company recorded a total of $216.653 million in reserves for chargebacks, co-pay assistance, and other fees as of March 31, 2025, compared to $275.645 million at the end of 2024[51] - Inventory of continuing operations decreased from $4.2 million as of December 31, 2024, to $3.5 million as of March 31, 2025[60] Debt and Interest Expenses - The 2029 Term Loan, entered on May 8, 2024, has a principal amount of $38.7 million, accruing interest at 8.0% per annum, with interest-only payments until maturity on May 8, 2029[84] - Interest expense on the 2029 Term Loan was $1.3 million for the three months ended March 31, 2025[85] - The company repaid $79.6 million of the 2027 Term Loans on May 8, 2024, which included principal repayment, accrued interest, and a prepayment premium[93] - The company repurchased approximately $170 million of its 2026 Convertible Notes on April 15, 2025, at a cash repurchase price equal to 100% of their principal amount[97] - The annual effective interest rate for the 2026 Convertible Notes is 2.1%, with total interest expense for the three months ended March 31, 2025, amounting to $1,203,000, compared to $1,195,000 for the same period in 2024[98]