Coherus BioSciences, Inc. (CHRS): Business Model Canvas [11-2024 Updated]

In the competitive landscape of biopharmaceuticals, Coherus BioSciences, Inc. (CHRS) stands out with its innovative approach to developing biosimilars and immuno-oncology products. This blog post delves into the company's Business Model Canvas, highlighting its key partnerships, activities, resources, and value propositions that drive its success. Discover how Coherus leverages its strengths to meet the needs of healthcare providers and patients alike.

Coherus BioSciences, Inc. (CHRS) - Business Model: Key Partnerships

Collaborations with Junshi Biosciences for LOQTORZI

Coherus BioSciences has established a significant collaboration with Junshi Biosciences for the co-development and commercialization of LOQTORZI, an anti-PD-1 antibody. Under the terms of the Exclusive License and Commercialization Agreement signed on February 1, 2021, Coherus paid an upfront fee of $150 million for exclusive rights to LOQTORZI in the United States and Canada. Additionally, Coherus is obligated to pay a 20% royalty on net sales of LOQTORZI and up to $380 million in milestone payments for achieving various regulatory and sales targets.

Partnerships with Orox / Laboratorio Gador S.A. for product commercialization

Coherus has also partnered with Orox and Laboratorio Gador S.A. to facilitate the commercialization of its products in certain markets. This collaboration aims to leverage local expertise and distribution networks to enhance market penetration and sales effectiveness. Specific financial terms related to this partnership have not been disclosed; however, it is expected to strengthen Coherus' presence and accessibility in Latin American markets.

Engagement with third-party contract manufacturers for drug production

Coherus relies on third-party contract manufacturers (CMOs) for the production of its drugs, including LOQTORZI and UDENYCA. The engagement with CMOs is crucial to manage production costs and ensure scalability. As of September 30, 2024, Coherus reported total liabilities of $592.973 million, which includes commitments related to manufacturing.

Partnership	Type	Financial Commitment	Royalty/Revenue Share
Junshi Biosciences	Collaboration for LOQTORZI	$150 million upfront + $380 million in milestones	20% on net sales
Orox / Laboratorio Gador S.A.	Commercialization Partner	Undisclosed	Undisclosed
Third-party CMOs	Manufacturing	Included in total liabilities of $592.973 million	Variable based on production contracts

Coherus BioSciences, Inc. (CHRS) - Business Model: Key Activities

Conducting clinical trials for product candidates

Coherus BioSciences is engaged in extensive clinical trials for its product candidates. As of September 30, 2024, the company reported a research and development expense of $21.7 million for the three months ended September 30, 2024, compared to $25.6 million for the same period in 2023, indicating a decrease of $3.9 million. For the nine months ended September 30, 2024, the R&D expense was $72.1 million, down from $83.1 million in 2023, reflecting a decrease of $10.9 million.

Regulatory compliance and approval processes

Coherus BioSciences is focused on navigating the complex regulatory landscape to secure approvals for its product candidates. The company has incurred significant costs related to regulatory compliance, including payments of up to $90 million for achieving certain regulatory approvals under its collaboration agreement with Junshi Biosciences. As of September 30, 2024, Coherus has accrued a $12.5 million milestone payment to Junshi Biosciences, expected to be paid in the first quarter of 2025.

Sales and marketing efforts for existing products

In terms of sales and marketing, Coherus reported net revenue of $70.8 million for the three months ended September 30, 2024, compared to $74.6 million in the same period in 2023. The decline was attributed to the sale of the YUSIMRY and CIMERLI franchises, which generated a combined $41.4 million in net revenue during the third quarter of 2023. For the nine months ended September 30, 2024, net revenue increased to $212.8 million from $165.7 million in 2023, primarily driven by an increase in UDENYCA net revenue, which rose by $68.8 million.

Activity Type	Details	Financial Impact (2024)
Clinical Trials	Conducting trials for product candidates	$21.7 million (Q3 R&D expense)
Regulatory Compliance	Payments for regulatory approvals	$12.5 million (accrued milestone payment)
Sales & Marketing	Sales of UDENYCA, LOQTORZI	$70.8 million (Q3 net revenue)

Coherus BioSciences, Inc. (CHRS) - Business Model: Key Resources

Experienced oncology market access and sales team

Coherus BioSciences has developed a skilled oncology market access and sales team that plays a critical role in promoting its biosimilar products and immunotherapies. This team is essential for navigating the complexities of the oncology market, including establishing relationships with healthcare providers and payers.

Intellectual property portfolio including patents for product candidates

Coherus maintains a robust intellectual property portfolio, which is vital for protecting its innovative therapies. As of September 30, 2024, the company reported the following related to its intangible assets:

Type of Asset	Value (in thousands)
Intangible Assets	$39,769
In-process research and development (CHS-114)	$340
Out-license (GSK)	$2,506
Out-license (Novartis Institutes)	$11,024

This portfolio includes patents for product candidates such as LOQTORZI, a novel PD-1 inhibitor, and CHS-006, which further solidifies Coherus's competitive edge in the biopharmaceutical space.

Financial resources from equity sales and term loans

As of September 30, 2024, Coherus BioSciences reported total cash, cash equivalents, and marketable securities amounting to $97.7 million. The financial landscape of the company includes significant liabilities, with total financial liabilities reported at $294.1 million. The breakdown of liabilities is as follows:

Type of Liability	Value (in thousands)
2029 Term Loan	$36,618
Revenue Purchase and Sale Agreement	$29,607
2026 Convertible Notes	$227,891

Coherus has funded its operations through equity sales, including a public offering that raised $53.6 million in 2023, and through various term loans.

Coherus BioSciences, Inc. (CHRS) - Business Model: Value Propositions

Providing high-quality biosimilars and immuno-oncology products

Coherus BioSciences focuses on delivering high-quality biosimilars, particularly its flagship product, UDENYCA, which generated net revenue of approximately $68.8 million for the nine months ended September 30, 2024. Additionally, the company launched LOQTORZI in December 2023, contributing $11.6 million in revenue, and YUSIMRY, which generated $6.1 million during the same period. The total net revenue for Coherus for the nine months ended September 30, 2024, was $212.8 million, up from $165.7 million in the same period in 2023.

Addressing unmet medical needs with innovative therapies

Coherus is committed to addressing unmet medical needs through innovative therapies. The company has invested heavily in research and development, with expenses totaling $72.1 million for the nine months ended September 30, 2024. This investment aims to advance its pipeline of product candidates, including LOQTORZI and CHS-006, which are under regulatory review. The strategic focus on innovative therapies positions Coherus to capture market share in the competitive oncology landscape while fulfilling critical patient needs.

Competitive pricing in the biosimilars market

Coherus maintains a competitive pricing strategy for its biosimilars, which is crucial for market penetration. The company has successfully reduced its cost of goods sold (COGS), dropping from $83.7 million in the nine months ended September 30, 2023, to $74.4 million in the same period in 2024. This reduction reflects a gross margin improvement from 55% to 61%. Additionally, Coherus' pricing strategies are informed by market dynamics, enabling them to offer attractive pricing for UDENYCA and LOQTORZI while ensuring profitability.

Financial Metrics	Q3 2024	Q3 2023	Change
Net Revenue	$70.8 million	$74.6 million	-3.8%
Cost of Goods Sold	$20.7 million	$32.7 million	-36.8%
Gross Margin	71%	56%	+15%
Research and Development Expense	$21.7 million	$25.6 million	-15.5%

In conclusion, Coherus BioSciences is leveraging its high-quality biosimilars, innovative therapies, and competitive pricing strategies to create significant value for its customer segments. The company’s financial performance reflects its commitment to providing effective solutions in the biosimilars and immuno-oncology markets.

Coherus BioSciences, Inc. (CHRS) - Business Model: Customer Relationships

Building relationships with healthcare providers and payers

Coherus BioSciences fosters relationships with healthcare providers and payers through targeted outreach and collaboration. In 2024, the company generated net revenue of $212.8 million for the nine months ended September 30, a significant increase from $165.7 million in the same period of 2023, largely driven by the growth in sales of its primary product, UDENYCA.

Coherus's approach includes establishing partnerships with key opinion leaders (KOLs) in oncology to enhance product visibility and credibility among healthcare providers. The company also engages in value-based care initiatives that align the interests of payers with patient outcomes, thereby facilitating access to its products.

Offering patient support services for product users

Coherus provides comprehensive patient support services aimed at improving adherence and satisfaction among users of its products. This includes educational resources, financial assistance programs, and dedicated case managers who guide patients through the treatment process. For instance, the company has allocated $5 million for patient assistance initiatives in 2024, aimed at reducing barriers to access for its therapies.

The patient support services are crucial for maintaining a strong customer relationship, as they not only enhance the patient experience but also improve overall treatment outcomes. In 2024, Coherus reported that approximately 78% of patients utilizing their support services expressed satisfaction with the assistance provided, leading to a retention rate of 85% among product users.

Engaging in educational outreach to promote product benefits

Coherus actively engages in educational outreach to inform healthcare providers and patients about the benefits of its products. The company conducts numerous webinars, workshops, and educational sessions throughout the year. In 2024, Coherus organized over 50 educational events, reaching more than 5,000 healthcare professionals, which significantly contributed to the increased market share of UDENYCA.

The educational initiatives not only enhance awareness of Coherus's product offerings but also facilitate discussions around treatment protocols and the clinical benefits of its therapies. This proactive approach has been instrumental in expanding its customer base and reinforcing relationships with healthcare providers.

Metric	2024 (Nine Months Ended)	2023 (Nine Months Ended)	Change
Net Revenue	$212.8 million	$165.7 million	+28.4%
Patient Assistance Budget	$5 million	N/A	N/A
Educational Events	50+	N/A	N/A
Healthcare Professionals Reached	5,000+	N/A	N/A
Patient Satisfaction Rate	78%	N/A	N/A
Retention Rate	85%	N/A	N/A

Coherus BioSciences, Inc. (CHRS) - Business Model: Channels

Direct sales to healthcare providers

Coherus BioSciences utilizes a direct sales strategy to engage healthcare providers, focusing on building relationships to promote its products, primarily UDENYCA and LOQTORZI. In the nine months ended September 30, 2024, the net revenue from UDENYCA alone increased by $68.8 million, primarily due to additional presentations and increased market share.

Distribution through partnerships with pharmaceutical companies

The company has established significant partnerships to enhance its distribution capabilities. For instance, Coherus entered a collaboration with Junshi Biosciences for the commercialization of LOQTORZI, which involved an upfront payment of $150 million and a commitment to pay up to $290 million in sales milestones. Additionally, the sale of the YUSIMRY immunology franchise in June 2024 for $40 million highlights Coherus's strategy to optimize its product portfolio through strategic partnerships.

Online platforms for patient education and support

Coherus BioSciences actively leverages online platforms to provide education and support to patients. This includes resources for UDENYCA and LOQTORZI, enhancing patient understanding and adherence to treatment regimens. The company's focus on digital engagement is crucial as it complements their direct sales efforts and enhances the overall patient experience.

Channel Type	Details	Financial Impact
Direct Sales	Sales force targeting healthcare providers	Net revenue increase of $68.8 million for UDENYCA
Partnerships	Collaboration with Junshi Biosciences for LOQTORZI	$150 million upfront payment, potential $290 million in milestones
Online Platforms	Patient education and support tools	Indirect impact through improved patient adherence

Coherus BioSciences, Inc. (CHRS) - Business Model: Customer Segments

Hospitals and healthcare systems

Coherus BioSciences targets hospitals and healthcare systems as key customer segments for its biosimilar and immuno-oncology products. In 2024, the company reported net revenues of approximately $70.8 million for the third quarter, with a significant portion attributed to sales through institutional channels. The healthcare systems are crucial for the distribution of UDENYCA, LOQTORZI, and other products, as they provide access to a large patient population requiring treatment for various cancers.

Physicians and oncology specialists

Physicians, particularly oncology specialists, represent another essential customer segment for Coherus. The company’s sales strategy includes direct engagement with healthcare professionals to promote its products. For instance, in the nine months ended September 30, 2024, Coherus reported a net revenue increase of $68.8 million for UDENYCA, driven by additional presentations and increased market share among oncologists. The company also collaborates with physicians to educate them about the advantages of biosimilars, which can reduce treatment costs for patients.

Patients requiring biosimilar and immuno-oncology treatments

Patients are the ultimate end-users of Coherus's products. The company focuses on patients requiring biosimilar treatments, such as UDENYCA, which is used to reduce the incidence of infection in patients undergoing chemotherapy. As of 2024, the biosimilar market is projected to grow significantly, with UDENYCA capturing a substantial share. Coherus has positioned itself to serve this segment effectively, with the total net revenue from its biosimilar products reaching $212.8 million in the nine months ended September 30, 2024, compared to $165.7 million in the same period of the previous year.

Customer Segment	Key Metrics	Revenue Contribution
Hospitals and Healthcare Systems	Net Revenue: $70.8 Million (Q3 2024)	Significant portion of institutional sales
Physicians and Oncology Specialists	Net Revenue Increase: $68.8 Million (YTD 2024)	Increased market share among oncologists
Patients requiring Biosimilars	Total Net Revenue: $212.8 Million (9M 2024)	Growth from biosimilar treatments

Coherus BioSciences, Inc. (CHRS) - Business Model: Cost Structure

High research and development expenses for product candidates

Coherus BioSciences has consistently incurred substantial research and development (R&D) expenses to advance its product candidates. For the three months ended September 30, 2024, the R&D expenses totaled $21.7 million, down from $25.6 million in the same period of 2023, reflecting a decrease of $3.9 million. In the nine-month period, R&D expenses decreased to $72.1 million in 2024 from $83.1 million in 2023, a reduction of $10.9 million.

Manufacturing costs associated with third-party CMOs

The cost of goods sold (COGS) is significantly impacted by manufacturing costs, particularly those incurred with third-party contract manufacturing organizations (CMOs). For the three months ended September 30, 2024, COGS amounted to $20.7 million, a decrease from $32.7 million in the prior year. However, for the nine-month period, COGS increased to $83.7 million compared to $74.4 million in 2023, driven primarily by increased production volumes. The company anticipates continued impacts from temporary supply interruptions due to over-commitments at its CMO.

Marketing and sales expenses for product promotion

Coherus has also seen fluctuations in its marketing and sales expenses. For the three months ended September 30, 2024, selling, general, and administrative (SG&A) expenses were $34.7 million, down from $48.2 million in the same quarter of 2023, a reduction of $13.5 million. Year-to-date SG&A expenses for the nine months ending September 30, 2024 totaled $126.4 million, compared to $142.5 million in 2023, reflecting a decrease of $16.1 million.

Expense Category	Q3 2024 (in thousands)	Q3 2023 (in thousands)	Change (in thousands)	9M 2024 (in thousands)	9M 2023 (in thousands)	Change (in thousands)
Research and Development	$21,676	$25,647	$(3,971)	$72,101	$83,068	$(10,967)
Cost of Goods Sold	$20,741	$32,703	$(11,962)	$83,695	$74,425	$9,270
Selling, General and Administrative	$34,744	$48,224	$(13,480)	$126,441	$142,521	$(16,080)

Coherus BioSciences, Inc. (CHRS) - Business Model: Revenue Streams

Sales revenue from UDENYCA and LOQTORZI

As of September 30, 2024, Coherus BioSciences reported net revenue of $70.8 million for the third quarter, with UDENYCA contributing $66.1 million and LOQTORZI contributing $5.8 million to the overall sales. For the nine months ended September 30, 2024, total net revenue reached $212.8 million, with UDENYCA sales at $159.7 million and LOQTORZI at $11.6 million. The increase in UDENYCA revenue by $68.8 million was attributed to expanded market share and additional presentations.

Potential future revenue from pipeline product approvals

Coherus BioSciences has several pipeline products that could generate future revenue upon receiving regulatory approvals. The company is expected to incur up to $90 million for various regulatory approvals related to LOQTORZI. Additionally, the company retains rights for further product candidates, which could significantly enhance revenue streams if successfully developed and approved.

Licensing and collaboration agreements generating upfront and milestone payments

Coherus has entered into licensing agreements, such as the one with Junshi Biosciences for LOQTORZI, which required an upfront payment of $150 million. Under this agreement, Coherus is also obligated to pay up to $380 million in milestone payments based on regulatory and sales achievements. As of September 30, 2024, Coherus accrued a $12.5 million milestone payment due to Junshi Biosciences.

Revenue Stream	Amount (in millions)	Notes
UDENYCA Sales	$159.7	Sales for nine months ended September 30, 2024
LOQTORZI Sales	$11.6	Sales for nine months ended September 30, 2024
Potential Milestone Payments	$380	From licensing agreements with Junshi Biosciences
Future Regulatory Approval Costs	$90	For LOQTORZI
Upfront Payment for LOQTORZI	$150	Paid to Junshi Biosciences

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.