erus BioSciences(CHRS) - 2025 Q2 - Quarterly Results

Q2 2025 Business and Financial Highlights Executive Summary Coherus Oncology achieved strong Q2 2025 commercial execution with a 36% LOQTORZI revenue increase and a $238 million cash position, securing a runway through 2026 LOQTORZI Net Revenue and Cash Position | Metric | Value | Change (QoQ) | | :--- | :--- | :--- | | LOQTORZI Net Revenue | $10.0 million | +36% | | Cash, Cash Equivalents & Marketable Securities | $238 million | N/A | - The company has a cash runway through 2026, which is beyond the expected key data readouts for its pipeline assets[2] - Data readouts for the oncology pipeline candidates CHS-114 (a cytolytic CCR8 antibody) and casdozokitug are on track for the first half of 2026[1][2] - The company's strategy focuses on maximizing LOQTORZI's potential, executing on clinical development to de-risk the pipeline, and creating ex-U.S. licensing opportunities[2] Business Updates This section details LOQTORZI's commercial growth, oncology pipeline advancements, and the strategic UDENYCA divestiture to strengthen financial position LOQTORZI® Commercial Updates LOQTORZI net revenue increased 36% to $10.0 million in Q2 2025, driven by demand and NCCN preferred status for NPC LOQTORZI Net Revenue Performance | Period | LOQTORZI Net Revenue | | :--- | :--- | | Q2 2025 | $10.0 million | | Q1 2025 | $7.3 million | | Q2 2024 | $3.8 million | - LOQTORZI is the only FDA-approved treatment in the U.S. for all patient subsets and lines of therapy for recurrent, locally advanced or metastatic nasopharyngeal carcinoma (NPC)[3] - The National Comprehensive Cancer Network (NCCN) guidelines were recently revised, granting LOQTORZI preferred status for its NPC indication, which has led to strong demand growth among Head & Neck cancer specialists[3] Oncology Pipeline Advancement Coherus advances its oncology pipeline, combining LOQTORZI with CHS-114 and casdozokitug for solid tumors, with key data expected in 1H 2026 LOQTORZI (toripalimab-tpzi) The strategy focuses on maximizing LOQTORZI's value through combination therapies with internal candidates and external partnerships for label expansions - Coherus plans to maximize the value of LOQTORZI by combining it with internal pipeline candidates (CHS-114, casdozokitug) and pursuing capital-efficient external partnerships for label expansions[4] CHS-114 (CCR8 Antibody) CHS-114, a selective cytolytic CCR8 antibody, is in Phase 1b combination studies with toripalimab, with initial data expected in 1H 2026 - CHS-114 is a selective cytolytic CCR8 antibody designed to deplete tumor regulatory T cells (Tregs)[4] - Phase 1b combination studies with toripalimab are underway in head and neck, gastric, and esophageal cancers, with initial data readouts expected in 1H 2026[11] Casdozokitug (IL-27 Antagonist) Casdozokitug, a first-in-class IL-27 antagonist, is undergoing a Phase 2 randomized trial in 1L HCC, with initial data expected in 1H 2026 - Casdozokitug is a first-in-class IL-27 antagonist with demonstrated activity in NSCLC, ccRCC, and HCC[5] - A Phase 2 randomized trial in 1L hepatocellular carcinoma (HCC) is ongoing, with the first data readout expected in 1H 2026[5] UDENYCA Divestiture and Debt Repayment Coherus completed the UDENYCA divestiture in Q2 2025 for $483.4 million, using proceeds to repay $230 million in convertible notes and buy out royalty rights UDENYCA Divestiture Summary | Transaction | Details | | :--- | :--- | | UDENYCA Divestiture | Completed April 11, 2025 | | Cash Received | $483.4 million (incl. $118.4M for inventory) | | Potential Milestones | Up to $75 million | - The company used proceeds to repay substantially all of the $230 million principal of its 2026 Convertible Notes[7] - Coherus also used proceeds to buy out royalty rights on UDENYCA net revenues for a payment of $47.7 million[7] Second Quarter 2025 Financial Results This section details Q2 2025 financial performance, covering continuing and discontinued operations, and the company's strengthened cash and financial position Overview of Financial Performance Q2 2025 net revenue from continuing operations was flat at $10.3 million, with R&D increasing to $26.3 million and SG&A decreasing to $26.0 million, narrowing net loss to $(44.9) million Key Financial Metrics (Continuing Operations) | Metric (Continuing Operations) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Revenue | $10.3 million | $10.3 million | | Cost of Goods Sold | $3.4 million | $1.8 million | | R&D Expenses | $26.3 million | $20.6 million | | SG&A Expenses | $26.0 million | $27.5 million | | Net Loss | $(44.9) million | $(54.9) million | | Diluted EPS | $(0.39) | $(0.48) | - The increase in R&D expenses was primarily due to development costs for casdozokitug and CHS-114[10] - The decrease in SG&A expenses was driven by lower headcount and reduced operating costs following recent divestitures[12] Discontinued Operations Net income from discontinued operations surged to $342.6 million in Q2 2025, primarily due to a $339.1 million net gain from the UDENYCA divestiture Discontinued Operations Financial Summary | Metric (Discontinued Operations) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income, net of tax | $342.6 million | $41.9 million | | Diluted EPS | $2.95 | $0.37 | - The increase in income from discontinued operations was primarily due to the $339.1 million net gain on the UDENYCA divestiture[17] Cash and Financial Position Coherus ended Q2 2025 with a strong cash position of $237.6 million, a significant increase from year-end 2024, primarily due to the UDENYCA divestiture Cash and Marketable Securities | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and marketable securities | $237.6 million | $126.0 million | Financial Statements This section provides the condensed consolidated statements of operations, balance sheets, cash flows, and non-GAAP financial measures reconciliation Condensed Consolidated Statements of Operations Coherus reported a Q2 2025 net loss from continuing operations of $44.9 million, but a total net income of $297.8 million, or $2.57 per share, due to discontinued operations Condensed Consolidated Statements of Operations (Three Months) | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net revenue | $10,254 | $10,296 | | Total costs and expenses | $55,740 | $49,922 | | Loss from operations | $(45,486) | $(39,626) | | Net loss from continuing operations | $(44,862) | $(54,851) | | Net income from discontinued operations, net of tax | $342,629 | $41,930 | | Net income (loss) | $297,767 | $(12,921) | | Net loss per share from continuing operations | $(0.39) | $(0.48) | | Net income (loss) per share | $2.57 | $(0.11) | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $439.5 million, with stockholders' equity turning positive to $119.8 million from a $132.0 million deficit, driven by divestitures and debt reduction Condensed Consolidated Balance Sheets | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $216,893 | $125,987 | | Total assets | $439,464 | $448,533 | | Convertible notes | $121 | $228,229 | | Total liabilities | $319,637 | $580,523 | | Total stockholders' equity (deficit) | $119,827 | $(131,990) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, operating activities used $72.5 million, investing activities provided $445.2 million, and financing activities used $281.8 million, resulting in a $90.9 million net cash increase Condensed Consolidated Statements of Cash Flows (Six Months) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(72,458) | $12,968 | | Net cash provided by investing activities | $445,152 | $230,419 | | Net cash used in financing activities | $(281,788) | $(187,038) | | Net increase in cash | $90,906 | $56,349 | | Cash at end of period | $217,156 | $159,692 | Non-GAAP Financial Measures Reconciliation Coherus reported a Q2 2025 non-GAAP net loss from continuing operations of $39.0 million, or $(0.34) per share, adjusted for stock-based compensation and intangible asset amortization Non-GAAP Net Loss from Continuing Operations Reconciliation | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | GAAP net loss from continuing operations | $(44,862) | $(54,851) | | Stock-based compensation expense | $5,166 | $6,859 | | Loss on debt extinguishment | — | $12,630 | | Amortization of intangible assets | $667 | $679 | | Non-GAAP net loss from continuing operations | $(39,029) | $(34,683) | Corporate Information and Forward-Looking Statements This section includes conference call details, an overview of Coherus Oncology, and standard forward-looking statements regarding future performance and risks Conference Call Information A conference call to discuss Q2 2025 results will be held on Thursday, August 7, 2025, at 5:00 p.m. ET, with access details provided About Coherus Oncology Coherus Oncology is a commercial-stage company focused on its PD-1 inhibitor LOQTORZI and an immuno-oncology pipeline, aiming to grow sales and advance combination therapies Forward-Looking Statements This section includes standard forward-looking statements, cautioning that actual results may differ due to inherent risks in drug development, regulation, competition, and financing