Coherus BioSciences, Inc. (CHRS): BCG Matrix [11-2024 Updated]

In the competitive landscape of biotechnology, understanding the positioning of Coherus BioSciences, Inc. (CHRS) through the lens of the Boston Consulting Group Matrix reveals critical insights into its business dynamics. This analysis categorizes its products into Stars, Cash Cows, Dogs, and Question Marks, highlighting their revenue potential and market challenges. Discover how Coherus is navigating its financial landscape and what the future may hold for its product pipeline below.

Background of Coherus BioSciences, Inc. (CHRS)

Coherus BioSciences, Inc. is a commercial-stage biopharmaceutical company headquartered in Redwood City, California, focused on the research, development, and commercialization of innovative immunotherapies to treat cancer. The company was established in September 2010 and has developed a robust portfolio of products aimed primarily at oncology, leveraging its proven commercial capabilities in this field.

Coherus's first product, UDENYCA (pegfilgrastim-cbqv), a biosimilar to Neulasta, was launched in the United States in January 2019. UDENYCA is a long-acting granulocyte-colony stimulating factor (G-CSF) used to decrease the incidence of infection in patients undergoing chemotherapy. The FDA approved a prior approval supplement for an auto-injector presentation of UDENYCA on March 3, 2023, which became commercially available on May 22, 2023. Furthermore, on December 26, 2023, the FDA approved the on-body injector version of UDENYCA, which became available in the first quarter of 2024.

Another significant product in Coherus's portfolio is LOQTORZI, an anti-PD-1 antibody developed in collaboration with Junshi Biosciences. LOQTORZI received FDA approval on October 27, 2023, for the first-line treatment of adults with metastatic or recurrent locally advanced nasopharyngeal carcinoma (NPC) in combination with cisplatin and gemcitabine, as well as for monotherapy in patients with disease progression following platinum-containing chemotherapy. The product was launched in the U.S. on January 2, 2024.

Coherus also launched YUSIMRY (adalimumab-aqvh), a biosimilar to Humira, in July 2023. However, the company sold its YUSIMRY franchise in June 2024 for $40 million, which included the assumption of inventory commitments. Additionally, Coherus launched CIMERLI (ranibizumab-eqrn), a biosimilar to Lucentis, in October 2022 but subsequently divested this franchise in March 2024 for $170 million plus additional inventory considerations.

As of September 30, 2024, Coherus reported cash, cash equivalents, and marketable securities totaling $97.7 million. The company has had a history of operating losses, with an accumulated deficit of $1.5 billion as of that date, primarily due to significant investments in research and development.

Coherus is actively pursuing an innovative immuno-oncology pipeline, which includes various investigational product candidates. Its lead clinical-stage candidate is casdozokitug (CHS-388), targeting IL-27, currently undergoing clinical studies for advanced solid tumors. Another candidate, CHS-114, focuses on CCR8 and is in trials for advanced solid tumors.

Overall, Coherus BioSciences is positioned in a competitive landscape, relying on its product portfolio and ongoing clinical developments to drive future growth and address unmet medical needs in oncology.

Coherus BioSciences, Inc. (CHRS) - BCG Matrix: Stars

UDENYCA and LOQTORZI are currently marketed products

Coherus BioSciences, Inc. has two primary products that can be classified as Stars in the BCG matrix: UDENYCA and LOQTORZI. UDENYCA, a biosimilar to Neulasta, has been a significant revenue generator since its launch in January 2019. The product has gained substantial market share within the pegfilgrastim market, contributing to the company's financial performance.

UDENYCA is generating significant revenue with FDA-approved presentations

For the nine months ended September 30, 2024, UDENYCA generated net revenue of $68.8 million, driven by additional FDA-approved presentations and an increase in market share. The total net revenue for UDENYCA during this period was reported at $212.8 million. The product's success is partially attributed to a recent FDA approval for a new autoinjector presentation in March 2023 and a further presentation approved in December 2023, which became commercially available in early 2024.

LOQTORZI has potential for growth in immuno-oncology

LOQTORZI, a novel PD-1 inhibitor developed in collaboration with Junshi Biosciences, launched in the U.S. in January 2024. The product has shown promising sales, contributing $11.6 million to the overall net revenue for the nine months ended September 30, 2024. As a new entrant in the immuno-oncology market, LOQTORZI is positioned for growth, particularly due to its application in treating metastatic nasopharyngeal carcinoma.

Strong market access and sales capabilities in the U.S. for product commercialization

Coherus has established strong market access and sales capabilities within the U.S., which have been critical for the successful commercialization of both UDENYCA and LOQTORZI. The company has focused on building relationships with healthcare providers and payers to enhance product adoption and market penetration.

Recent net income of $79.2 million in nine months ended September 30, 2024

In the nine months ended September 30, 2024, Coherus reported a net income of $79.2 million, marking a significant turnaround from a net loss of $158.2 million in the same period in 2023. This financial improvement is largely due to increased revenues from UDENYCA and LOQTORZI, along with successful divestitures of non-core assets, which have allowed the company to streamline operations and focus on its key products.

Coherus BioSciences, Inc. (CHRS) - BCG Matrix: Cash Cows

UDENYCA has established a strong market presence as a biosimilar to Neulasta.

As of September 30, 2024, UDENYCA generated $212.8 million in revenue for the nine months ending on that date, representing a significant increase compared to $165.7 million for the same period in 2023.

Consistent revenue generation, with $212.8 million in revenue for nine months ending September 30, 2024.

The revenue for the three months ended September 30, 2024, was $70.8 million, compared to $74.6 million in the same quarter of 2023. The increase in UDENYCA's net revenue for the nine months ending September 30, 2024, was primarily driven by a $68.8 million increase due to additional presentations and increased market share.

Cost of goods sold decreased due to divestitures, improving gross margins.

The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $83.7 million, which represents a decrease from $74.4 million in the same period of 2023. This reduction in COGS is attributed to the divestiture of the CIMERLI and YUSIMRY franchises, which had significant costs associated with them. The gross margin improved to 61% for the nine months ended September 30, 2024, compared to 55% in the previous year.

Ongoing sales from UDENYCA expected to continue supporting cash flow.

UDENYCA remains a vital cash generator for Coherus BioSciences, contributing to overall cash flow stability. Despite a temporary supply interruption announced on September 13, 2024, production is expected to resume by November 4, 2024. The anticipated recovery in production is projected to re-establish UDENYCA's distribution channels quickly.

UDENYCA's continued performance as a cash cow is essential for Coherus BioSciences, providing the necessary cash flow to support operations, fund R&D, and cover corporate expenses.

Coherus BioSciences, Inc. (CHRS) - BCG Matrix: Dogs

Accumulated Deficit

The accumulated deficit of Coherus BioSciences, Inc. stands at $1.5 billion as of September 30, 2024, indicating significant long-term financial challenges.

Limited Product Portfolio

Coherus currently has a limited product portfolio, with only two approved products on the market: UDENYCA and LOQTORZI.

Historical Net Losses

The company has reported net losses in each year since its inception in 2010. For instance, the net loss for the quarter ended September 30, 2024, was $10.8 million, and the total net loss for the nine months ended September 30, 2024, was $79.2 million.

Dependence on External Funding

Coherus is heavily reliant on external funding for its operations and development. As of September 30, 2024, the company's total cash, cash equivalents, and marketable securities were $97.7 million, which may not be sufficient for long-term sustainability without additional funding.

Coherus BioSciences, Inc. (CHRS) - BCG Matrix: Question Marks

Pipeline Candidates

Coherus BioSciences has several pipeline candidates such as casdozokitug and CHS-114 that are currently in early clinical stages. As of September 30, 2024, the company reported an increase in research and development expenses related to casdozokitug of approximately $10.7 million. The development of CHS-114 also saw an increase of about $5.0 million.

Regulatory Approval Risks

The path to regulatory approval for new products is fraught with uncertainty and high risks. As of September 30, 2024, Coherus reported an accumulated deficit of $1.5 billion. The company’s financial condition emphasizes the speculative nature of biopharmaceutical product development, which involves significant investment without guaranteed returns.

Investment in R&D

To advance product candidates, Coherus will need substantial investment in research and development. The company incurred $72.1 million in research and development expenses for the nine months ended September 30, 2024. This reflects ongoing expenditures to support pipeline candidates and the overall strategy to enhance market share.

Market Acceptance

The market acceptance of Coherus' new products remains uncertain, impacting their future revenue potential. The company’s net revenue for the nine months ended September 30, 2024, was $212.8 million, which includes sales from its launched products. However, any future revenue from pipeline candidates will depend on their successful regulatory approval and market adoption.

In summary, Coherus BioSciences, Inc. (CHRS) presents a mixed portfolio when analyzed through the BCG Matrix. The company's Stars, UDENYCA and LOQTORZI, are driving significant revenue and have strong market potential. Meanwhile, UDENYCA also qualifies as a Cash Cow, consistently generating revenue and supporting cash flow. However, the company faces challenges as indicated by its Dogs category, marked by a substantial accumulated deficit and a limited product portfolio. Lastly, the Question Marks in its pipeline highlight the uncertainty and risk associated with upcoming candidates, necessitating careful investment in R&D to secure future growth.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.