Daiichi Sankyo to Acquire Coherus BioSciences for $2 Billion

TL;DR

Daiichi Sankyo buying CHRS for $16/share cash, deal worth $2B.

AI Summary

On September 13, 2024, Coherus BioSciences, Inc. announced a definitive agreement to be acquired by a subsidiary of Daiichi Sankyo Company, Limited. The transaction is valued at approximately $2.0 billion, with shareholders to receive $16.00 per share in cash. The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

Why It Matters

This acquisition by a major pharmaceutical company like Daiichi Sankyo could significantly impact Coherus's product pipeline and market presence, potentially leading to new treatment options for patients.

Risk Assessment

Risk Level: medium — The deal is subject to closing conditions and regulatory approvals, which could delay or prevent its completion.

Key Numbers

• $2.0B — Acquisition Value (Total amount Daiichi Sankyo is paying for Coherus BioSciences.)
• $16.00 — Price Per Share (Cash amount shareholders will receive for each share of Coherus BioSciences.)

Key Players & Entities

• Coherus BioSciences, Inc. (company) — Company being acquired
• Daiichi Sankyo Company, Limited (company) — Acquiring company
• $2.0 billion (dollar_amount) — Total transaction value
• $16.00 (dollar_amount) — Price per share in cash
• September 13, 2024 (date) — Date of announcement
• fourth quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.0001 — ge on which registered Common Stock, $0.0001 par value per share CHRS The Nasdaq
• $30 million — 021, the Company has invested more than $30 million with the goal of diversifying and incre
• $25 million — The Company has invested approximately $25 million since 2021 with the goal of doubling it
• $6 million — ing. The Company has invested more than $6 million since 2023 to significantly increase it
• $250 — hich are expected to be in the range of $250 to $265 million for 2024. This guidance
• $265 million — expected to be in the range of $250 to $265 million for 2024. This guidance includes approx
• $40 million — 4. This guidance includes approximately $40 million of stock-based compensation expense and

Filing Documents

• chrs-20240913x8k.htm (8-K) — 45KB
• 0001558370-24-012783.txt ( ) — 200KB
• chrs-20240913.xsd (EX-101.SCH) — 4KB
• chrs-20240913_def.xml (EX-101.DEF) — 3KB
• chrs-20240913_lab.xml (EX-101.LAB) — 12KB
• chrs-20240913_pre.xml (EX-101.PRE) — 11KB
• chrs-20240913x8k_htm.xml (XML) — 5KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure On September 13, 2024, the Company provided an update regarding its supply chain, including steps designed to strengthen its full supply chain to meet increasing demand for its UDENYCA product lines over the long term while reducing costs. UDENYCA is a single dose biosimilar to Neulasta (pegfilgrastim), licensed in three formulations (prefilled syringe, autoinjector, and prefilled syringe co-packaged with an on-body injector) that allow doctors and patients to choose which format best fits the patients' needs and lifestyle. The Company's U.S.-based, third-party Contract Manufacturing Organization ("CMO") for final packaging recently informed the Company of its over-commitments and capacity constraints at its final labeling and packaging facility that will cause a temporary UDENYCA supply interruption. The delays in production are related only to labeling and final packaging and do not concern availability or supply of the UDENYCA active pharmaceutical ingredient or manufacturing of the UDENYCA drug product or finished product components. Coherus projects channel supply to be substantially depleted by mid-October as inventories draw down. Concurrently, based on target production schedules provided by the CMO, the Company expects manufacturing to resume in mid-October, with product availability to begin to resume by early November. The Company is dedicated to ensuring that its commercial products reach the patients who rely on them in a timely and efficient manner. The Company has used this same CMO for final packaging across multiple products for more than ten years without incident or interruption. The Company is working closely with the CMO to address the delay. The Company also will be working closely with its wholesalers and prescribers to minimize any disruption caused by the temporary supply interruption. Among other actions, the Company has put in place expedited shipping measures to get product to customers as quick

Forward-Looking Statements

Forward-Looking Statements Except for the historical information contained herein, the matters set forth in this Current Report on Form 8-K are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about guidance and projections for R&D and SG&A expenses for 2024; statements about the production cost of UDENYCA; statements about future revenue and sales; statements about increasing the Company's packaging and labeling capacity; expectations about the timing or ability of the Company to have an operational second facility available for packaging; statements about the risk of potential outages; and statements about the resumption of manufacturing and supply for UDENYCA at the Company's existing packaging CMO and statements about growing demand for the Company's products. Such risks and uncertainties include, among others, the risk of the Company's reliance on third-party CMOs to supply its products; the risk of manufacturing our products in conformance with regulatory requirements and to scale up supply capacity; the risk of manufacturing delays; the risk of our CMOs complying with extensive FDA regulatory requirements; risks of the Company's competitive position; risks of litigation; and the risks and uncertainties of the regulatory approval process. All forward-looking statements contained in this Current Report on Form 8-K speak only as of the date hereof. The Company undertakes no obligation to update or revise any forward-looking statements. For a further description of the significant risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the Company's business in general, see the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the Securities and Exchange Commission on August 8, 2023, including th

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: September 13, 2024 COHERUS BIOSCIENCES, INC. By: /s/ Dennis M. Lanfear Name: Dennis M. Lanfear Title: Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR