Coherus Oncology, Inc. Q2 FY2025 earnings call

Company Introduction

• Renamed to Coherus Oncology to reflect focus on developing cutting-edge cancer therapies, goal to improve cancer patient survival.

LOQTORZI Commercial

• Q2 net revenue $10M, driven by new patient demand and wholesaler inventory rebuild. Over 90% of NCCN institutions use LOQTORZI in NPC patients, new purchasing accounts grew 20%, and 22% increase in accounts using LOQTORZI in subsequent patients. Focus on educating community oncologists with refreshed messaging, KOL-driven digital content, and real-time data targeting.

Pipeline Development

• CHS-114: Anti-CCR8 Treg depleter. Active trials in head and neck, gastric, esophageal cancer. First U.S. company to demonstrate Treg depletion in head and neck trial, combination with LOQTORZI showed partial response in fourth-line patient.
• Casdozokitug: Anti-IL-27 antagonist. Phase II study in first-line hepatocellular carcinoma showed 38% overall response rate and 17% complete response rate in combination with toripalimab and bevacizumab. Randomized Phase II study in squamous non-small cell lung cancer planned.

Financial Updates

• Ended Q2 with $238 million in cash and investments. Cash burn moderating, cost savings from headcount reductions (now expect $30M annualized savings, up from $25M). SG&A projected $90M-$100M for 2025, R&D expenses dependent on data readouts.

In Q2 2025, LOQTORZI (brand name for toripalimab) had net revenue of $10 million, a 36% growth over Q1 2025 and 65% year-over-year. Nasopharyngeal cancer represents a market opportunity of $150 million to $200 million for LOQTORZI.

• LOQTORZI revenue expected to follow rare disease dynamics with steady ramp, aiming for $150M-$200M franchise goal. - Pipeline data readouts expected in first half of 2026 for CHS-114 (efficacy/safety in head and neck, gastric, esophageal) and casdozokitug (efficacy/safety in hepatocellular carcinoma). - Expect partners to collaborate and offset development costs for pipeline through ex-U.S. licensing and co-development arrangements.

Q: Brian Cheng on pipeline partner for CCR8 program, data readouts timing A: Denny, Rosh, and Theresa discuss that data readouts for CHS-114 are expected in the first half of 2026, with ongoing partner discussions to offset development costs.

Q: Michael Nedelcovych on CCR8 competitor readouts, anti-IL-27 competition A: Theresa mentions no other anti-IL-27 molecules in clinical development, and CCR8 competitors like Renovo and Shionogi have relevant data.

Q: Colleen Kusy on LOQTORZI community investment, partner data readouts A: Dennis and Theresa discuss collaborative arrangements for LOQTORZI, with STORM Therapeutics study ongoing in head and neck and lung cancer with potential data readouts next year.

Q: Li Chen on HCC triplet durability, Phase III comparator A: Bryan and Theresa discuss atezo data presented in January 2025, ongoing casdozokitug trial, and Phase III comparator likely being atezo/bev.

Q: Jason McCarthy on KEYTRUDA biosimilar risk A: Rosh and Dennis state LOQTORZI is the only labeled PD-1 with strong NPC data, with no impact from biosimilars.

Q: Douglas Tsao on guidelines impact in community A: Sameer explains community physicians see few NPC patients, requiring ongoing education to permeate NCCN guidelines