CHRS — Coherus Oncology, Inc.

Summary of Coherus Oncology, Inc. Q4 and Full Year 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue Growth: LOQTORZI net revenue reached $40.8 million for the full year 2025, a 113% increase from $19.1 million in 2024. Q4 revenue was $12.4 million, reflecting an 11% growth over Q3.
• Debt Reduction: The company reduced its secured and convertible debt by over 90%, from $480 million to $38.8 million by year-end 2025, significantly lowering interest costs.
• Operational Expenses: SG&A expenses decreased to $23.6 million in Q4 from $29.6 million a year prior, marking the fourth consecutive quarter of flat or declining expenses. R&D expenses rose to $31 million in Q4, up from $20.8 million in Q4 2024.
• Cash Position: Cash equivalents and investments totaled $172.1 million at year-end, bolstered by a recent $50 million capital raise.

2. Strategic Updates and Business Highlights

• Transformation: Coherus completed its strategic shift from a biosimilar company to an innovative oncology firm, focusing on overcoming immune resistance in cancer.
• Product Launch: LOQTORZI, a next-generation PD-1 inhibitor, was launched in 2024 and is positioned as the only approved treatment for recurrent, locally advanced, or metastatic nasopharyngeal carcinoma (NPC) in the U.S.
• Pipeline Development: The company is advancing two promising candidates, tagmokitug (a CCR8 Treg cell depleter) and casdozokitug (an anti-IL-27 inhibitor), with multiple clinical trials planned.
• Partnerships: A collaboration with Johnson & Johnson was established to explore the combination of tagmokitug with a prostate-specific T-cell engager.

3. Forward Guidance and Outlook

• Revenue Projections: Coherus expects LOQTORZI to achieve peak market share of approximately 70% by 2028, translating to $175 million in annual revenue. The company anticipates reaching a cash flow breakeven point of $30 million to $35 million in quarterly revenue by 2027.
• Clinical Readouts: Initial data readouts for tagmokitug and casdozokitug are expected from mid-2026 onwards.

4. Bad News, Challenges, or Points of Concern

• Competitive Landscape: The Treg depletion field is becoming increasingly competitive, with other companies expected to release data in the near term, which could impact Coherus's positioning.
• Sales Sensitivity: LOQTORZI is described as highly promotion-sensitive, requiring continuous engagement with physicians to drive adoption, especially in a rare disease context.
• Operational Risks: The company faces the challenge of managing R&D expenditures while balancing the need for further capital to support its expanding pipeline.

5. Notable Q&A Insights

• Patient Dynamics: Approximately 25% of LOQTORZI's revenue in 2025 came from new patients, with expectations for this mix to shift towards more new patients in the future.
• Promotional Strategies: The company is investing in expanding its sales force and enhancing its IT infrastructure to capture more patient opportunities, particularly in the Veterans Affairs segment.
• Combination Studies: There is interest in exploring triple combination therapies involving tagmokitug, with ongoing evaluations of its efficacy alongside other treatments.
• Data Disclosure Plans: Coherus plans to release clinical data as it becomes available, either at congresses or through corporate disclosures, depending on timing and maturity of the data.

Overall, Coherus Oncology has made significant strides in its transformation and product development, with a strong financial position and promising growth outlook, despite facing competitive pressures and operational challenges.