Coherus Oncology, Inc. Q3 FY2024 earnings call

UDENYCA Performance - Achieved 100% revenue growth since Q3 2023, reaching $66M in Q3 2024 with a 30% QoQ increase. - Retained number 2 market share with nearly 30% share. - Supply chain: Labeling and packaging CMO restarted final packaging of UDENYCA this week, with 120,000 units expected to be completed over next 5 weeks. Additional labeling and packaging CMO setup underway, aiming to double capacity to over 1 million units annually. ### LOQTORZI Performance - Sales grew 54% QoQ in Q3 2024. - Focus on early-line NPC patients, with ~70% of LOQTORZI patients treated in combination with chemotherapy. - Projected to achieve dominant market share in NPC market valued at $150M-$200M. ### Pipeline Highlights - TME-targeted candidates: CHS-114 (CCR8 cytolytic antibody) and casdozokitug (IL-27 antagonist) in clinical trials. - CHS-114 in Phase 1/2 trials in combination with toripalimab, targeting T-reg cell suppression. - casdozokitug showing monotherapy responses in non-small cell lung cancer squamous subtype. ### Cost Management - Q3 2024 COGS $20.7M, down $12M Y/Y. - R&D expense $21.7M, down $4M Y/Y. - SG&A expense $34.7M, down $13.5M Y/Y. - Interest expense $5.4M, down $4.9M Y/Y. - Revised 2024 combined R&D and SG&A expense range to $250M-$260M.

UDENYCA: Achieved $66 million in revenue in Q3 2024, a 100% increase from Q3 2023 and a 30% increase from Q2 to Q3 2024. Retained number 2 position in the market with nearly 30% share. LOQTORZI: Sales grew 54% quarter-over-quarter, reaching $5.8 million in Q3 2024.

• Revised 2024 combined R&D and SG&A expense guidance: $250M-$260M. - UDENYCA expected to return to market growth in 2025. - LOQTORZI projected to achieve dominant market share in NPC market.

• Supply chain risks: Dependence on third-party CMOs and potential for further interruptions. - Clinical trial risks: Uncertainties in drug development, efficacy, and safety of pipeline candidates.

Q: What are expectations for the casdo and tori trial in late line lung cancer, especially given competition failures?

A: Rosh Dias stated they're building on nice data sets, following science, with a stage design and looking to move to Phase 3 study. Theresa LaVallee added focus on second/third line and squamous histology due to biology.

Q: When will UDENYCA be available in the commercial channel again and how have accounts managed without it?

A: Paul Reider said sales expected to resume late November/early December. Accounts managed by bridging with existing product or using competitors, but indications are they'll return to UDENYCA upon resupply.

Q: Detail on response rate benchmark for casdozo trial in late line lung cancer vs docetaxel?

A: Rosh Dias said docetaxel typically has a ~12% overall response rate in second line, and they'll look for increment over that in the trial.

Q: When will UDENYCA meet all demand and how will recovery go?

A: Denny Lanfear said 120,000 units scheduled to be produced in 5 weeks. Paul Reider noted demand acceleration depends on account decisions on patient treatment, but customers are expected to return with UDENYCA's differentiated features.