Why Is Coherus BioSciences Stock Trading Higher On Tuesday?

Core Viewpoint - Coherus BioSciences, Inc. has entered into an asset purchase agreement with Intas Pharmaceuticals Ltd for the divestiture of its Udenyca franchise for up to $558.4 million, which includes an upfront payment of $483.4 million and potential milestone payments of $75 million [1][2]. Group 1: Financial Implications - The transaction proceeds will be used to fully repay $230 million in existing convertible notes due April 2026 and $49.1 million to buy out certain royalty obligations related to Udenyca [2]. - The deal is expected to close by the end of Q1 2025 [3]. Group 2: Strategic Focus - The divestiture aligns with the company's strategy to concentrate R&D and commercial resources on its innovative immuno-oncology portfolio [2]. - Coherus plans to advance its immuno-oncology portfolio in combination with Loqtorzi, a next-generation PD-1, which is marketed in the U.S. for two indications [3]. Group 3: Future Development Plans - Additional partnerships evaluating Loqtorzi with other cancer agents are planned for 2025 [4]. - Coherus intends to initiate a Phase 2 trial of casdozokitug/toripalimab/bevacizumab in first-line hepatocellular carcinoma in Q4 2024, with final data from a Phase 2 trial in Q1 2025 [4]. - The company plans to report Phase 1 monotherapy biopsy data and combination safety data in head and neck squamous cell carcinoma in 1H 2025 [4]. Group 4: Recent Performance - Following the announcement, CHRS stock increased by 41.6%, reaching $1.94 [6].