Coherus BioSciences, Inc. (CHRS) Bundle
A Brief History of Coherus BioSciences, Inc.
Overview of Financial Performance
As of September 30, 2024, Coherus BioSciences, Inc. reported a net loss of $10.8 million for the third quarter, compared to a net loss of $39.6 million in the same period of the previous year. For the nine months ending September 30, 2024, the company achieved a net income of $79.2 million, a significant improvement from a net loss of $158.2 million for the same period in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenue | $70.8 million | $74.6 million | $212.8 million | $165.7 million |
| Cost of Goods Sold | $20.7 million | $32.7 million | $83.7 million | $74.4 million |
| Research and Development Expense | $21.7 million | $25.6 million | $72.1 million | $83.1 million |
| Selling, General and Administrative Expense | $34.7 million | $48.2 million | $126.4 million | $142.5 million |
| Net Income (Loss) | $(10.8 million) | $(39.6 million) | $79.2 million | $(158.2 million) |
Stockholder's Deficit
As of September 30, 2024, Coherus had a total stockholders' deficit of $(87.973 million), compared to $(193.425 million) at the end of the previous year. The balances of common stock were reported at 115,213,407 shares with a par value of $12.
Recent Transactions and Sales
Coherus completed significant sales in 2024, including:
- CIMERLI Sale: On April 1, 2024, Coherus recognized a net gain of $153.8 million from the sale of CIMERLI, which included cash receipts of $187.8 million.
- YUSIMRY Sale: On June 26, 2024, the company sold its YUSIMRY immunology franchise for $40 million, resulting in a net gain of $22.9 million.
Debt Management
Coherus reported total financial liabilities of $294.1 million as of September 30, 2024, a decrease from $473.4 million at the end of 2023. This included:
- 2026 Convertible Notes: $227.9 million
- 2029 Term Loan: $36.6 million
Liquidity Position
Coherus had cash and cash equivalents amounting to $97.7 million as of September 30, 2024. This is a decrease from $117.7 million as of December 31, 2023. The company expects its available cash, alongside proceeds from product sales and financing activities, to meet its operational needs for at least the next twelve months.
Stock-Based Compensation
For the three months ended September 30, 2024, Coherus reported stock-based compensation expenses of $6.9 million, a decrease from $10.0 million in the previous year. The breakdown of stock-based compensation was as follows:
| Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Goods Sold | $0.282 million | $0.174 million |
| Research and Development | $2.1 million | $2.9 million |
| Selling, General and Administrative | $4.5 million | $6.9 million |
Future Outlook
Coherus anticipates a significant reduction in costs due to the divestiture of underperforming assets and is focusing on enhancing its core product lines and pipeline development.
A Who Owns Coherus BioSciences, Inc. (CHRS)
Major Shareholders
As of September 30, 2024, Coherus BioSciences, Inc. has a total of approximately 115,213,407 shares of common stock outstanding. The ownership structure is as follows:
| Shareholder | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | ~63,200,000 | ~54.9% |
| Insider Ownership | ~6,500,000 | ~5.6% |
| Public Float | ~45,513,407 | ~39.5% |
Institutional Ownership Breakdown
The institutional ownership includes various asset management firms and institutional investors. The top institutional shareholders are:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| Vanguard Group | ~10,500,000 | ~9.1% |
| BlackRock, Inc. | ~9,000,000 | ~7.8% |
| State Street Corporation | ~8,000,000 | ~6.9% |
| Wellington Management | ~7,500,000 | ~6.5% |
| Other Institutions | ~28,200,000 | ~24.5% |
Insider Ownership Details
Insider ownership consists of executives and board members who hold shares in the company. Their interests are as follows:
| Name | Position | Shares Owned |
|---|---|---|
| Dennis J. McGarry | CEO | ~1,500,000 |
| David S. H. Zhang | CFO | ~1,200,000 |
| Other Executives | Various | ~3,800,000 |
Recent Changes in Share Ownership
As of June 30, 2024, the company had recently issued additional shares through various means:
- Issuance of common stock upon exercise of stock options: 174,651 shares
- Issuance of common stock upon vesting of restricted stock units: 741,213 shares
- Issuance of common stock under ATM Offering: 650,005 shares
Financial Performance Indicators
Coherus BioSciences reported a net income of $79.2 million for the nine months ended September 30, 2024, primarily attributed to revenue from product sales and divestitures. The total revenue for the same period was $212.8 million, compared to $165.7 million in the prior year.
The company has an accumulated deficit of $1.5 billion as of September 30, 2024, indicating significant past losses despite recent operational gains.
Coherus BioSciences, Inc. (CHRS) Mission Statement
Mission Statement Overview
Coherus BioSciences, Inc. is dedicated to advancing affordable access to high-quality biologic medicines for patients. The company focuses on developing and commercializing innovative therapeutics that address unmet medical needs, ensuring that patients can benefit from their treatments without significant financial burden.
Core Values
- Patient-Centricity: Commitment to prioritizing patient needs in all decision-making processes.
- Innovation: Continuous investment in research and development to pioneer new treatments.
- Integrity: Upholding ethical standards and transparency in all operations.
- Responsibility: Fostering a sustainable approach to business practices that benefits society at large.
Financial Goals
Coherus aims to achieve robust financial growth while maintaining operational efficiency. The company targets a strategic balance between investment in R&D and fiscal responsibility, ensuring long-term sustainability and profitability.
Recent Financial Performance
| Metric | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Net Revenue | $70.8 million | $74.6 million | Decrease of $3.8 million |
| Net Income (Loss) | $(10.8) million | $(39.6) million | Improvement of $28.8 million |
| Gross Margin | 71% | 56% | Increase of 15% |
| Cash and Cash Equivalents | $97.7 million | $117.7 million | Decrease of $20 million |
| Accumulated Deficit | $(1.5) billion | $(1.58) billion | Improvement of $80 million |
Research and Development Focus
Coherus is actively focusing on expanding its product pipeline and enhancing existing therapies. The company has allocated resources to the development of LOQTORZI, an anti-PD-1 antibody, and aims to optimize its existing portfolio, including UDENYCA and YUSIMRY.
Strategic Partnerships
Collaboration with Junshi Biosciences represents a key strategic partnership. Under this agreement, Coherus is responsible for co-developing LOQTORZI, with potential milestone payments totaling up to $380 million based on regulatory and sales achievements.
Market Position and Challenges
The competitive landscape in the biopharmaceutical sector poses challenges, including pricing pressures and market share dynamics. As of September 30, 2024, Coherus has experienced a significant net revenue increase of $68.8 million for UDENYCA compared to the previous year, driven by additional presentations and increased market share, although offset by declining average net selling prices.
Future Outlook
Coherus aims to strengthen its market presence and product offerings while navigating the complexities of the biopharmaceutical market. The company is positioned to leverage its financial resources and strategic collaborations to enhance its R&D capabilities and operational efficiency.
Financial Highlights
| Financial Metrics | 2024 (Year to Date) | 2023 (Year to Date) |
|---|---|---|
| Net Revenue | $212.8 million | $165.7 million |
| Cost of Goods Sold | $83.7 million | $74.4 million |
| Research and Development Expense | $72.1 million | $83.1 million |
| Selling, General and Administrative Expense | $126.4 million | $142.5 million |
Conclusion
Coherus BioSciences is committed to its mission of delivering affordable and innovative biologic medicines. The company's strategic focus on R&D, market expansion, and effective partnerships positions it for continued growth and success in the biopharmaceutical industry.
How Coherus BioSciences, Inc. (CHRS) Works
Company Overview
Coherus BioSciences, Inc. (CHRS) is a biotechnology company focused on the development and commercialization of innovative therapeutics to treat cancer and autoimmune diseases. As of 2024, the company has a portfolio that includes biosimilars and innovative products.
Financial Performance
For the third quarter ended September 30, 2024, Coherus reported the following financial results:
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $70.8 million | $74.6 million | (5.0%) |
| Net Loss | $(10.8) million | $(39.6) million | 73.3% |
| Comprehensive Income (Loss) | $(10.8) million | $(39.6) million | 73.3% |
| Basic Net Income (Loss) per Share | $(0.09) | $(0.41) | 78.0% |
Revenue Sources
The company's revenue is primarily generated from the sale of its FDA-approved products:
- UDENYCA
- YUSIMRY
- CIMERLI (discontinued as of March 1, 2024)
Revenue for the nine months ended September 30, 2024, was $212.8 million compared to $165.7 million for the same period in 2023, indicating a significant increase driven by product sales and strategic divestitures.
Cost Structure
The cost of goods sold (COGS) for Q3 2024 was $20.7 million, a decrease from $32.7 million in Q3 2023. The research and development (R&D) expenses were $21.7 million in Q3 2024 compared to $25.6 million in Q3 2023, reflecting a focus on cost management and efficiency.
Debt and Financial Liabilities
As of September 30, 2024, Coherus had total financial liabilities amounting to $294.1 million, which includes:
- 2029 Term Loan: $36.6 million
- 2026 Convertible Notes: $227.9 million
The company fully repaid its 2027 Term Loans in April 2024.
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow from operating activities was $(49.0) million, while investing activities generated $230.9 million, largely due to the divestiture of CIMERLI.
Collaborations and Licensing Agreements
Coherus has established collaborations, including an exclusive license with Junshi Biosciences for the co-development and commercialization of LOQTORZI. The initial upfront payment was $150 million, with additional milestone payments potentially totaling $380 million.
Market Position and Future Outlook
Coherus is strategically positioned in the biosimilar market, with plans to leverage its existing product portfolio while exploring new therapeutic areas. The company aims to stabilize its supply chain and enhance its operational capabilities.
Recent Developments
In 2024, Coherus completed the sale of its CIMERLI ophthalmology franchise for $170 million and recognized a net gain of $153.6 million. The company is also managing a temporary supply interruption of UDENYCA, which is expected to be resolved by the end of 2024.
Conclusion
As of September 30, 2024, Coherus BioSciences continues to adapt its business strategy in response to market conditions and operational challenges while working to enhance its financial stability and product offerings.
How Coherus BioSciences, Inc. (CHRS) Makes Money
Revenue Streams
Coherus BioSciences generates revenue through the sale of its biopharmaceutical products, primarily focusing on oncology and immunology. The company's key products include UDENYCA, LOQTORZI, and YUSIMRY.
| Product | Launch Date | Net Revenue (2024) | Market Share Contribution |
|---|---|---|---|
| UDENYCA | January 3, 2019 | $161.9 million | Increased due to additional presentations and market share |
| LOQTORZI | December 2023 | $11.6 million | Newly launched |
| YUSIMRY | July 2023 | $6.1 million | Newly launched |
| CIMERLI | October 2022 | $0 (sold March 1, 2024) | Divested |
Financial Performance Overview
For the nine months ended September 30, 2024, Coherus reported net revenue of $212.8 million, a significant increase compared to $165.7 million in the same period of 2023. The increase was primarily driven by the growth in UDENYCA sales, offset by the divestiture of CIMERLI and YUSIMRY.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $70.8 million | $74.6 million | $(3.8) million |
| Cost of Goods Sold | $20.7 million | $32.7 million | $(12.0) million |
| Gross Margin | 71% | 56% | +15% |
| Net Income (Loss) | $(10.8) million | $(39.6) million | +$(28.8) million |
Cost Structure
The cost of goods sold (COGS) consists primarily of third-party manufacturing, distribution, royalties, and certain overhead costs. The decrease in COGS for Q3 2024 was mainly due to reduced costs associated with CIMERLI and YUSIMRY, which were divested in 2024.
Research and Development (R&D) Expenses
R&D expenses for the nine months ended September 30, 2024, amounted to $72.1 million, down from $83.1 million in the same period of 2023. This decrease is attributed to reduced spending on projects that have been divested or terminated.
| R&D Expenses | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Research and Development | $21.7 million | $25.6 million | $(3.9) million |
Sales and Marketing Expenses
Sales, general, and administrative expenses totaled $126.4 million for the nine months ended September 30, 2024, compared to $142.5 million in 2023. This reduction reflects cost-cutting measures following product divestitures.
Recent Transactions and Their Financial Impact
Coherus has engaged in several significant transactions affecting its revenue generation:
- CIMERLI Sale: Completed on March 1, 2024, for $170 million plus $17.8 million for inventory.
- YUSIMRY Sale: Completed on June 26, 2024, for $40 million, leading to a net gain of $22.9 million.
- Rights to Toripalimab: Sold for $6.3 million on June 27, 2024.
| Transaction | Cash Received | Net Gain |
|---|---|---|
| CIMERLI Sale | $187.8 million | $153.8 million |
| YUSIMRY Sale | $40.0 million | $22.9 million |
| Rights to Toripalimab | $6.3 million | $6.3 million |
Future Outlook
Coherus anticipates that its revenue will be impacted in Q4 2024 due to a temporary supply interruption of UDENYCA. The company is working to resolve manufacturing constraints and expects to resume supply by late 2024.
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Resources:
- Coherus BioSciences, Inc. (CHRS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Coherus BioSciences, Inc. (CHRS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Coherus BioSciences, Inc. (CHRS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.