Summary of Coherus Oncology Q2 2026 Earnings Call

1Key Financial Results and Metrics

Net Sales: LOQTORZI net sales reached $13.6 million, marking a 15% quarter-over-quarter growth.

R&D Expenses: Reduced to $21.4 million from $26.3 million year-over-year, attributed to lower headcount and clinical trial costs.

SG&A Expenses: Decreased to $21.0 million, down from $26.0 million in Q2 2025, continuing a trend of six consecutive quarters of declining SG&A expenses.

Cash Position: Cash, cash equivalents, and investments totaled $105.3 million, down from $167 million in Q1, primarily due to TSA obligations.

Full Year Revenue Guidance: LOQTORZI revenue expected between $57 million and $62 million.

2Strategic Updates and Business Highlights

Clinical Pipeline: Three studies fully enrolled, including the CADILYZE study in hepatocellular carcinoma (HCC) and TAGMO cohorts in head and neck squamous cell carcinoma and colorectal cancer.

Tagmokitug Development: Focus on Treg depletion to enhance immune response durability in cancer treatments.

Commercial Strategy: Continued efforts to establish LOQTORZI as a leading treatment for nasopharyngeal carcinoma (NPC), leveraging compelling long-term survival data to drive physician adoption.

3Forward Guidance and Outlook

LOQTORZI Growth: Anticipated average quarterly growth of 10% to 15%, with a target of $15 million in quarterly revenue by 2026 and $30 million by 2027.

Data Readouts: Key data disclosures expected in October 2026, particularly for TAGMO studies, which will inform future development strategies.

4Bad News, Challenges, or Points of Concern

Cash Burn: Despite reduced expenses, the decline in cash reserves raises concerns about future funding, although management believes they are sufficiently funded through key data readouts.

Clinical Data Maturation: Delays in data maturity for ongoing studies, particularly in HCC, where only 50% of patients have had sufficient scans for analysis.

Market Competition: Emerging therapies in the treatment landscape for head and neck cancer may pose competitive pressures, necessitating continued innovation and differentiation.

5Notable Q&A Insights

TAGMO Study Enrollment: Discussion on potentially prospectively enrolling patients based on HPV status as data matures.

Casdozo Phase III Plans: Management indicated they may not wait for overall survival data to proceed with Phase III studies, focusing instead on response rates and durability.

LOQTORZI Dosing Issues: Identified opportunities for correcting dosing misunderstandings among clinicians, which could enhance treatment duration and revenue potential.

Market Penetration: Continued efforts to convert physicians from chemotherapy to LOQTORZI, with a focus on educating them about the drug's efficacy and proper dosing protocols. Overall, Coherus Oncology is navigating a pivotal phase with promising clinical developments and solid commercial execution, while also addressing challenges related to cash management and competitive dynamics in the oncology market.