Financial Data and Key Metrics Changes - The net loss from discontinued operations for Q1 2025 was $9.2 million compared to a net income of $170.9 million in Q1 2024, primarily due to a $153.6 million gain on the sale of the Similee ophthalmology franchise in March 2024 [49][50] - Revenue for Q1 2025 was flat at $7.3 million, attributed to a seasonal inventory drawdown despite a 15% growth in patient demand [39][40] - Cost of Goods Sold (COGS) from continuing operations increased to $2.7 million from $1.4 million in Q1 2024 due to increased sales of Lactorsi [48] Business Line Data and Key Metrics Changes - Lactorsi is projected to grow to approximately $150 million to $200 million annually over the next three years, providing non-dilutive funding for the development pipeline [10] - The commercial team reported a 15% growth in patient demand for Lactorsi, with an increase in new patient starts and duration of treatment [39][40] Market Data and Key Metrics Changes - The market for nasopharyngeal carcinoma (NPC) is estimated to be valued at $150 million to $200 million, with expectations for Lactorsi to achieve a dominant share [43] - The restructuring of the sales force was completed, and the team is now focused on driving growth in the NPC patient population [38] Company Strategy and Development Direction - The company is focused on innovative oncology, with three core pillars: Torapalumab (Lactorsi), CHS-114 (a selective CCR8 cytolytic antibody), and casdosoketogue (an anti-IL-27 antibody) [7][14] - A key part of the strategy includes partnerships for indication expansion, where the company supplies drugs to partners who fund clinical trials [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changes in the FDA and emphasized the importance of strong development expertise [54][57] - The company anticipates that Q2 and Q3 will be times for growth, following the restructuring of the sales force [69] Other Important Information - The company expects to achieve approximately $25 million in annualized savings from lower headcount following the divestiture of UDENYCA [47] - The company has received $483 million in upfront cash from the UDENYCA divestiture and plans to repurchase remaining convertible notes [45] Q&A Session Summary Question: What needs to happen for a significant inflection point for Lactorsi? - Management noted that awareness among providers is increasing, and they expect to see an acceleration in growth following the restructuring of the sales force [53][58] Question: Can you clarify what you meant by patient demand for Lactorsi? - Demand refers to actual patient growth as indicated by clinics purchasing the product from wholesalers, which is distinct from revenue [66][67] Question: Will there still be an impact from the sales force restructure in Q2? - Management believes the impact was primarily in Q1, and they expect Q2 and Q3 to be times for growth [69] Question: Are PD-1s like Keytruda still being used off-label in NPC? - Yes, off-label use of PD-1s is prevalent, especially in community settings, despite NCCN guidelines recommending Lactorsi [73][79] Question: Can you discuss the Type D meeting with the FDA for CHS-114? - The meeting focused on aligning on Project Optimus, and the FDA found the company's approach acceptable [84][86]

Coherus BioSciences Conference Call Summary Company Overview - Coherus BioSciences is transitioning to Coherus Oncology, focusing on innovative oncology solutions [3][2] - The foundational asset is Torpalimab, branded as Lactorsi, a next-generation PD-1 inhibitor [3][4] Key Products and Developments - **Torpalimab (Lactorsi)**: - First PD-1 approved based on Chinese data, specifically for recurrent metastatic nasopharyngeal cancer [5] - Established as the standard of care in nasopharyngeal cancer, with strong positioning in NCCN guidelines [6] - Launched last year, with ongoing efforts to expand its use among healthcare providers [6][40] - **Combination Strategies**: - Torpalimab is being developed in combination with other assets, including Casdozo and Zoketo [6][12] - Partnerships with other companies for pivotal trials, including studies in small cell cancer and liver cancer [7][8] - **Casdozo (anti-IL-27)**: - Demonstrated a 17-18% response rate in liver cancer with five complete responses in a study of 27 patients [12] - Focused development in specialized tissues like lung and liver, showing promising early results [14] - **CCR8 Class**: - Emerging as a significant class in immuno-oncology, with Coherus being the first to present US patient data [9][10] - Targeting Tregs in the tumor microenvironment to enhance CD8 T cell activity [11] Market Position and Strategy - The company aims to position Torpalimab as a second-generation PD-1 option as Keytruda approaches patent expiration in 2028 [8] - The strategy includes co-developing Torpalimab with proprietary assets to enhance sales multiples [8] Financial Outlook - The launch of Lactorsi is progressing as expected, with a target market of approximately 2,000 patients [39][44] - Projected annual sales for Lactorsi are estimated between $150 million to $200 million within three years [45] - Recent divestitures totaling around $800 million have significantly improved the company's cash position, allowing for debt repayment and a strong balance sheet [51] Future Development Plans - Upcoming data readouts for both Casdozo and Torpalimab are anticipated next year, with a focus on achieving key benchmarks in response rates and progression-free survival [27][30] - The company is committed to advancing its pipeline with a focus on data-driven decision-making and targeted therapies [34] Additional Insights - The competitive landscape includes other players in the head and neck cancer space, with Coherus aiming to differentiate through unique mechanisms of action [22][24] - The company emphasizes the importance of understanding the right patient populations for treatment, leveraging preclinical data to guide clinical development [33][34] Conclusion - Coherus BioSciences is strategically positioned in the oncology market with innovative products and a robust pipeline, focusing on maximizing patient benefit and shareholder value through targeted therapies and effective market strategies [49][52]