erus BioSciences(US:CHRS)2025-11-06 23:00Financial Data and Key Metrics Changes - Coherus Oncology reported Q3 2025 net revenue of LOQTORZI at $11.2 million, reflecting a 12% increase quarter-over-quarter and a 92% increase year-over-year, although this is a decline from the 35% growth seen in Q2 [26][32] - The total cash and investments at the end of Q3 was $192 million, with total liabilities of $429 million, of which $254 million related to transition service agreements [33][34] - R&D expenses for the quarter were $27.3 million, up 24% from Q3 last year, while SG&A expenses were $24.9 million, down 11% compared to last year [35] Business Line Data and Key Metrics Changes - LOQTORZI's growth was driven by new patient starts and increasing duration of treatment, with a total number of accounts purchasing LOQTORZI growing over 15% [26][28] - The average growth for three out of four regions was 21%, with one region experiencing flat demand due to staffing issues [27][30] Market Data and Key Metrics Changes - The addressable market for LOQTORZI in nasopharyngeal cancer (NPC) is estimated to be between $150 million and $200 million, with expected average demand growth of 10%-15% over the next three years [28][29] - Approximately 2,000 LOQTORZI eligible patients are seen each year, with key differences in treatment dynamics between hospital-based specialists and community physicians [29][30] Company Strategy and Development Direction - The company aims to achieve a step change in patient survival through drug combinations and is focusing on expanding its pipeline with LOQTORZI and CHS-114 [6][10] - Coherus is pursuing partnerships to offset ongoing clinical development costs and is focused on global rights for its pipeline products [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue targets and highlighted strong execution across all business dimensions [5][37] - The company is well-positioned to continue scientific leadership in TREG depletion and is excited about the potential of its pipeline assets [9][18] Other Important Information - The company has transitioned to focus solely on novel oncology after exiting the biosimilar business, using divestiture proceeds to pay off near-term debts [33][34] - The clinical program for CHS-114 is designed to explore its utility across multiple tumor types, with a focus on colorectal cancer and other solid tumors [22][80] Q&A Session Summary Question: Potential for bispecific format targeting CCR8 and PD-1 - Management acknowledged the interest in bispecifics but emphasized the challenges in combining mechanisms and suggested traditional combination therapy may yield stronger clinical responses [40][44] Question: Trajectory and inflection points for LOQTORZI - Management indicated that with a consistent growth rate of 10%-15% per quarter, the company could reach its sales target of $150 million-$200 million earlier than mid-2028, emphasizing the importance of physician education [47][50] Question: Expectations for colorectal cancer study benchmarks - Management highlighted the need to exceed current response rates in the fourth-line setting and emphasized the importance of durability and disease stability in evaluating outcomes [51][53] Question: Justification for moving to pivotal studies for casdozokitug - Management stated that they would look for solid overall response rates and durability in the upcoming data readouts to justify moving forward with pivotal studies [62][63] Question: Increase in duration of therapy for LOQTORZI - Management noted that duration of therapy is increasing each quarter, although they have not yet reached the average seen in clinical trials [67][69] Question: Expectations around dose optimization data for CHS-114 - Management expressed optimism about the ongoing study and the importance of biopsy data in determining the recommended phase two dose [70][74]