Coherus Swings to Profit on UDENYCA Divestiture, LOQTORZI Sales Up

TL;DR

**CHRS is shedding its biosimilar past to focus on oncology, and the UDENYCA sale just gave them a massive cash injection to fuel that pivot.**

AI Summary

Coherus Oncology, Inc. reported a net income of $205.667 million for the nine months ended September 30, 2025, a significant increase from $79.203 million in the same period of 2024. This was primarily driven by a substantial net income from discontinued operations, which reached $342.444 million in 2025, up from $248.504 million in 2024, largely due to the divestiture of the UDENYCA franchise. Revenue from continuing operations also increased to $29.424 million for the nine months ended September 30, 2025, compared to $18.656 million in 2024, representing a 57.7% increase. However, the company experienced a net loss from continuing operations of $136.777 million for the nine months ended September 30, 2025, slightly better than the $169.301 million loss in 2024. Research and development expenses rose to $77.914 million in 2025 from $71.074 million in 2024, while selling, general and administrative expenses decreased to $76.995 million from $95.874 million. Cash and cash equivalents decreased from $125.987 million at December 31, 2024, to $103.352 million at September 30, 2025. The company completed the divestiture of the UDENYCA Business to Intas for $483.4 million in April 2025 and is eligible for two additional $37.5 million earnout payments based on UDENYCA net sales. The strategic outlook focuses on growing LOQTORZI sales and advancing its oncology pipeline.

Why It Matters

This filing reveals Coherus's pivot to a pure-play oncology company, with the UDENYCA divestiture significantly boosting net income and providing substantial cash. For investors, this de-risks the balance sheet and sharpens the focus on LOQTORZI and the oncology pipeline, potentially attracting new institutional interest. Employees in the oncology division may see increased investment and strategic importance, while those associated with UDENYCA have transitioned to Intas. Customers of LOQTORZI can expect continued development and support for the PD-1 inhibitor. In the competitive oncology market, this move positions Coherus to better compete with larger pharmaceutical companies by concentrating resources on innovative cancer treatments, rather than biosimilars.

Risk Assessment

Risk Level: medium — While the UDENYCA divestiture provided a significant cash infusion of $483.4 million and reduced overall liabilities from $580.523 million to $428.745 million, the company still reported a net loss from continuing operations of $136.777 million for the nine months ended September 30, 2025. This indicates ongoing operational losses in its core oncology business, requiring continued reliance on its cash reserves and potential future financing to fund research and development expenses, which increased to $77.914 million.

Analyst Insight

Investors should closely monitor LOQTORZI sales growth and the progress of Coherus's oncology pipeline, as these are now the primary drivers of future value. The $75 million in potential earnout payments from the UDENYCA sale provides a near-term catalyst, but sustained profitability will depend on the success of their oncology strategy. Consider this a speculative growth play in oncology, with a clearer focus post-divestiture.

Financial Highlights

revenue

$29.424M

total Assets

$516.519M

total Debt

$428.745M

net Income

$205.667M

cash Position

$103.352M

revenue Growth

+57.7%

Revenue Breakdown

Key Numbers

• $205.667M — Net income (For the nine months ended September 30, 2025, up from $79.203M in 2024)
• $342.444M — Net income from discontinued operations (For the nine months ended September 30, 2025, up from $248.504M in 2024)
• $29.424M — Net revenue from continuing operations (For the nine months ended September 30, 2025, up from $18.656M in 2024)
• $136.777M — Net loss from continuing operations (For the nine months ended September 30, 2025, an improvement from $169.301M in 2024)
• $483.4M — Upfront cash consideration for UDENYCA divestiture (Received on April 11, 2025)
• $75M — Potential earnout payments (Two additional $37.5M payments from UDENYCA sale)
• $103.352M — Cash and cash equivalents (As of September 30, 2025, down from $125.987M at December 31, 2024)
• $77.914M — Research and development expenses (For the nine months ended September 30, 2025, up from $71.074M in 2024)
• $76.995M — Selling, general and administrative expenses (For the nine months ended September 30, 2025, down from $95.874M in 2024)
• 116,236,018 — Shares outstanding (As of September 30, 2025)

Key Players & Entities

• Coherus Oncology, Inc. (company) — Registrant
• Intas Pharmaceuticals Ltd. (company) — Purchaser of UDENYCA franchise
• Accord BioPharma, Inc. (company) — Indirect wholly owned subsidiary of Intas
• LOQTORZI (product) — Approved next-generation PD-1 inhibitor
• UDENYCA (product) — Divested biosimilar franchise
• Nasdaq Global Market (market) — Exchange where CHRS Common Stock is registered
• Securities and Exchange Commission (regulator) — Federal regulatory body
• Junshi Biosciences (company) — Recipient of milestone payment

FAQ

Risk Factors

• Dependence on Divested Assets [high — financial]: The significant net income reported is heavily influenced by the divestiture of the UDENYCA franchise. Future profitability will depend on the success of remaining and new products like LOQTORZI and pipeline development, which carry inherent risks.
• Declining Cash Position [medium — financial]: Cash and cash equivalents decreased from $125.987 million at December 31, 2024, to $103.352 million at September 30, 2025. This reduction, coupled with ongoing net losses from continuing operations ($136.777 million for nine months ended Sep 30, 2025), may impact the company's ability to fund future R&D and operations without additional financing.
• Research and Development Investment [medium — operational]: R&D expenses increased to $77.914 million for the nine months ended September 30, 2025, from $71.074 million in the prior year. While necessary for pipeline advancement, these rising costs contribute to the net loss from continuing operations and require careful management.
• Competition in Oncology Market [high — market]: The oncology market is highly competitive, with numerous established players and emerging biotechs. Success of LOQTORZI and future pipeline candidates will depend on differentiation, efficacy, safety, and market access against existing and novel therapies.
• Potential Earnout Payment Uncertainty [low — financial]: The company is eligible for up to $75 million in additional earnout payments from the UDENYCA divestiture. Realization of these payments is contingent on UDENYCA net sales, introducing uncertainty into future cash flows.

Industry Context

The oncology pharmaceutical market is characterized by high R&D costs, lengthy development cycles, and intense competition. Success hinges on developing innovative therapies with demonstrable efficacy and safety profiles, navigating complex regulatory pathways, and securing market access and reimbursement. Companies often engage in strategic divestitures and acquisitions to optimize their portfolios and focus on promising therapeutic areas.

Regulatory Implications

Coherus operates within a highly regulated industry. Approval and marketing of oncology drugs are subject to stringent review by agencies like the FDA. Changes in healthcare policy, pricing regulations, and post-market surveillance requirements can significantly impact revenue and profitability.

What Investors Should Do

1. Monitor the performance of LOQTORZI and the progress of the oncology pipeline to assess future growth drivers.
2. Analyze the impact of the UDENYCA divestiture on long-term financial sustainability, considering the reduction in cash and ongoing operational losses.
3. Evaluate the company's strategy for managing R&D expenses while pursuing pipeline development.
4. Assess the potential realization of UDENYCA earnout payments and their contribution to future cash flow.

Key Dates

• 2025-04-11: Divestiture of UDENYCA franchise completed — Provided upfront cash consideration of $483.4 million and potential for future earnout payments, significantly impacting the company's financial results through discontinued operations.
• 2025-09-30: End of the third quarter — Reporting period for the 10-Q, showing a net loss from continuing operations of $136.777 million and cash and cash equivalents of $103.352 million.
• 2024-12-31: End of the fiscal year — Prior period balance sheet data, showing cash and cash equivalents of $125.987 million.

Glossary

Discontinued Operations

Represents the results of a business segment that a company has disposed of or plans to dispose of. These results are reported separately on the income statement. (Crucial for understanding Coherus's reported net income, as the UDENYCA franchise divestiture significantly boosted this figure.)

Continuing Operations

Refers to the ongoing business activities of a company that are expected to continue into the future. (Highlights the operational performance of Coherus's core business, which is currently generating losses despite revenue growth.)

TSA receivables / TSA payables

Likely refers to 'Transition Services Agreement' receivables and payables, which arise when one company provides services or goods to another during a transition period, often after a divestiture or acquisition. (Significant balances in TSA receivables ($241.251M) and payables ($253.908M) as of September 30, 2025, indicate ongoing financial arrangements related to the UDENYCA divestiture.)

Accumulated Deficit

The cumulative net losses of a company since its inception that have not been offset by net income. (Coherus has a substantial accumulated deficit of $1,345,326,000 as of September 30, 2025, reflecting its history of operating losses, despite the recent boost from discontinued operations.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Coherus has seen a significant increase in net income, largely due to the UDENYCA divestiture's contribution from discontinued operations. Revenue from continuing operations also grew by 57.7%, indicating positive top-line momentum. However, the company continues to incur substantial net losses from continuing operations, although this loss has narrowed. R&D expenses have increased, while SG&A expenses have decreased, reflecting a strategic shift in resource allocation. The company's cash position has declined, and significant TSA-related receivables and payables have emerged, likely tied to the divestiture.

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share CHRS The Nasdaq
• $37.5 million — ikelihood of us receiving either of the $37.5 million payments we are eligible to receive as

Filing Documents

• chrs-20250930x10q.htm (10-Q) — 2660KB
• chrs-20250930xex31d1.htm (EX-31.1) — 14KB
• chrs-20250930xex31d2.htm (EX-31.2) — 15KB
• chrs-20250930xex32d1.htm (EX-32.1) — 12KB
• 0001104659-25-107852.txt ( ) — 10758KB
• chrs-20250930.xsd (EX-101.SCH) — 68KB
• chrs-20250930_cal.xml (EX-101.CAL) — 83KB
• chrs-20250930_def.xml (EX-101.DEF) — 319KB
• chrs-20250930_lab.xml (EX-101.LAB) — 551KB
• chrs-20250930_pre.xml (EX-101.PRE) — 457KB
• chrs-20250930x10q_htm.xml (XML) — 2018KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 ITEM 3 Quantitative and Qualitative Disclosure About Market Risk 41 ITEM 4

Controls and Procedures

Controls and Procedures 42 PART II OTHER INFORMATION 43 ITEM 1.

Legal Proceedings

Legal Proceedings 43 ITEM 1A.

Risk Factors

Risk Factors 43 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Equity Securities 93 ITEM 3 Defaults Upon Senior Securities 93 ITEM 4 Mine Safety Disclosures 93 ITEM 5 Other Information 93 ITEM 6. Exhibits 94

Signatures

Signatures 95 LOQTORZI, whether or not appearing in large print or with the trademark symbol, is a registered trademark of Coherus. Trademarks and trade names of other companies appearing in this Quarterly Report on Form 10-Q are, to the knowledge of Coherus, the property of their respective owners. 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Any statements contained herein that are not statements of historical facts contained in this Quarterly Report on Form 10-Q may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by words such as "aim," "anticipate," "assume," "attempt," "believe," "contemplate," "continue," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "seek," "should," "strive," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about: whether our available cash, cash equivalents and marketable securities, product sales, and ATM Offering proceeds received to date will be sufficient to fund our planned expenditures and meet our obligations in the future; whether we will be able to continue to maintain or increase sales for our product; our expectations regarding our ability to develop and commercialize our product candidates ; our ability to maintain regulatory approval for our product and our ability to obtain and maintain regulatory approval of our product candidates, if and when approved;

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Unaudited Condensed Consolidated Financial Statements

ITEM 1. Unaudited Condensed Consolidated Financial Statements Coherus Oncology, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) September 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 103,352 $ 125,987 Investments in marketable securities 88,311 — Trade receivables, net 9,245 111,324 TSA receivables, net 241,251 11,010 Inventory 2,048 4,207 Prepaid manufacturing 8,048 6,653 Other prepaids and current assets 8,700 10,222 Assets of discontinued operations, current (Note 6) — 72,180 Total current assets 460,955 341,583 Property and equipment, net 1,633 2,576 Intangible assets, net 49,484 53,646 Other assets, non-current 4,447 6,485 Assets of discontinued operations, non-current (Note 6) — 44,243 Total assets $ 516,519 $ 448,533 Liabilities and Stockholders' Equity (Deficit) Current liabilities: Accounts payable $ 24,893 $ 28,456 Accrued rebates, fees and reserves 67,010 164,867 TSA payables and accrued liabilities 253,908 11,026 Accrued compensation 13,385 18,344 Accrued and other current liabilities 13,101 60,288 Total current liabilities 372,297 282,981 Term loan, non-current 36,957 36,698 Convertible notes, non-current — 228,229 Lease liabilities, non-current 1,946 3,286 Other liabilities, non-current 17,545 29,329 Total liabilities 428,745 580,523 Commitments and contingencies (Note 9) Stockholders' equity (deficit): Preferred stock ($ 0.0001 par value; shares authorized: 5,000,000 ; shares issued and outstanding: 0 at September 30, 2025 and December 31, 2024) — — Common stock ( $ 0.0001 par value; shares authorized: 300,000,000 ; shares issued and outstanding : 116,236,018 and 115,614,548 at September 30, 2025 and December 31, 2024, respectively) 12 12 Additional paid-in capital 1,433,291 1,419,266 Accumulated other

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