Coherus Oncology Inc (CHRS) Q3 2024 Earnings Report

Coherus Oncology reported Q3 2024 total net product revenue of $70.6 million, marking a QoQ increase of 8.9% but a YoY decline of 5.1%. The UDENYCA franchise contributed $66.0 million of net revenue, up 30% QoQ and 100% YoY, while LOQTORZI generated $5.8 million, up 54% QoQ as the launch continues to gain traction. The quarter took place during a temporary supply interruption for UDENYCA, which the company characterized as a 3% sequential demand decline franchise-wide, with a more pronounced revenue impact expected to materialize in Q4 and cash impact lagging into Q1 2025. Management highlighted aggressive supply-restoration plans and the addition of a second labeling/packaging CMO to double capacity to over 1 million UDENYCA units annually, positioning the company for a stronger 2025 recovery and market-share gains.

From a profitability and cash-flow perspective, CHRS narrowed its GAAP net loss to $10.8 million in Q3 2024 from a $39.6 million loss in the prior-year period, while non-GAAP net loss improved to $1.7 million. Gross margin remained robust at approximately 70.7%, driven by product mix and prior divestitures, with gross profit of about $50.0 million. Operating loss was $6.39 million (operating margin -9.0%), and EBITDA registered a negative $3.84 million. Cash burn remained meaningful, with net cash used in operating activities of $62.0 million and cash/equivalents of $97.7 million at 9/30/2024. The company reaffirmed a 2024 target range for combined R&D and SG&A of $250–$260 million (excluding certain BD activities and ~ $30 million in stock-based compensation). While the company did not provide Q4 revenue guidance, management signaled that restocking of UDENYCA would begin in late November/early December 2024 and that demand should resume with acceleration in 2025. The NPC opportunity for LOQTORZI remains a long-term growth vector, with LOQTORZI dominated by early-line patient acquisition and duration-driven revenue ramps, supported by a TAM estimate of $150–$200 million for NPC market. Management also outlined a multi-pillar IO strategy (internal assets CHS-114, Casdozokitug; external collaborations) and ongoing cost-management actions that improved the balance sheet over the past year. For investors, the near-term focus is on the speed and precision of UDENYCA restocking, LOQTORZI uptake in NPC and combination settings, and the progress of pipeline candidates with potential to broaden the company’s immuno-oncology platform.