Coherus Oncology, Inc. Q1 FY2026 earnings call

• Company Strategic Framework

  • Core strategy centers on Lactorsi, which generates direct revenue in NPC and acts as a combination partner for the company's pipeline molecules to drive additional value and label expansion.
  • The company's pipeline leverages two proprietary assets: Casdoso ketone (investigated in liver cancer) and Tegmo ketone (TAGMO-T, a CCR8 cytolytic antibody for Treg depletion investigated across multiple solid tumor indications).
  • Tegmo ketone is positioned as a foundational Treg depletion platform, not just a checkpoint adjunct, with the company actively pursuing non-proprietary combination partnerships across T-cell engagers, ADCs, radiotherapy, and bispecifics; the first such partnership with J&J for prostate cancer is already in place.
  • The company estimates its total addressable market opportunity at $33 billion with current development efforts. Peak annual Lactorsi revenue is projected at $175 million, which is expected to cover core operating cash burn excluding clinical trial costs.

• Clinical Development Progress

  • The CATALYST 202 randomized Phase 2 study of Casdoso ketone in first-line hepatocellular carcinoma (HCC) completed target enrollment of 72 patients. Initial data is expected mid-year 2026, with response data maturing over subsequent quarters. This study builds on prior data showing a 38% overall response rate (ORR) and 17% complete response rate (CRR), compared to historical 30% ORR and 7.7% CRR for standard of care alone.
  • For Tegmo ketone: the 40-patient expansion cohort in second-line head and neck squamous cell carcinoma (HNSCC) is on track to deliver initial data mid-year 2026; the 40-patient cohort in second-line upper GI adenocarcinoma is also on track for mid-year 2026 initial data; cohorts B/C (esophageal squamous cell carcinoma) and D (fourth-line microsatellite-stable colorectal carcinoma without liver mets) are active and accruing, with initial data expected H2 2026; the J&J combination cohort in prostate cancer is expected to douse its first patient in fall 2026.
  • All programs are tracking to planned timelines and enrollment targets.

• CCR8 Field Perspective

  • Recent divergent outcomes across the CCR8 Treg depletion field (some companies pausing or halting programs while others advance) are explained by pharmacology, not the target itself: CCR8 is a GPCR, which is challenging to target with selective, potent antibodies. Most discontinued programs failed due to suboptimal drug-like properties (poor pharmacokinetics, potency, or unacceptable safety profiles).
  • Tegmo ketone has met all key pharmacological criteria: excellent linear dose-dependent PK, target binding/killing potency, dose-dependent immune effects, and an acceptable safety profile as monotherapy and in combination with Lactorsi.

• Commercial Execution for Lactorsi

  • Q1 2026 saw an all-time high in new patient starts for Lactorsi, driven by broader prescribing in new accounts and deeper repeat utilization in existing accounts. The total number of ordering accounts increased 21% year-over-year, and average treatment duration continues to rise quarter-over-quarter.
  • Key commercial priorities are reducing chemotherapy-only use in NPC via guideline and clinical data education, and curbing off-label use of competing PD-1s in NPC, leveraging newly purchased claims data that provides visibility into 70% of addressable patients to enable targeted field outreach. The company has also expanded its sales team into community oncology settings and scaled digital education including KOL videos, EMR initiatives, and pilot programs on HCP-focused AI platforms.

Coheris Oncology has one core commercial product segment, Lactorsi (Bactorsi, the approved PD-1 inhibitor for nasopharyngeal cancer (NPC)), which generated net sales of $11.8 million in Q1 2026. This represents a 61% year-over-year increase compared to Q1 2025, and a 4.8% sequential decline from $12.4 million in Q4 2025. The sequential decline was aligned with broader seasonal trends for oncology products, amplified by severe winter weather across the U.S. that impacted 2026 Q1 oncology product sales more severely than historical averages. There are no other commercial product segments; all other pipeline programs remain in clinical development and do not generate revenue.

• Lactorsi revenue guidance is maintained: management expects to hit $15 million in quarterly Lactorsi revenue sometime in 2026, $30-$35 million in quarterly revenue sometime in 2027, and peak quarterly revenue of ~$44 million (annualized $175 million) in 2028.
• Management maintained its projection of 10-15% average quarterly demand growth for Lactorsi across 2026.
• Full year 2026 revenue guidance will be provided on the Q2 2026 earnings call in August 2026.
• The company confirms it is sufficiently funded through all key clinical data readouts scheduled for 2026 and 2027 following its $54 million net proceeds follow-on equity offering completed in Q1 2026.

• Forward-looking statements regarding clinical trial results, revenue growth, and product development carry inherent uncertainty, and actual results may differ materially from current projections; the company undertakes no obligation to update forward-looking statements.
• CCR8-targeted Treg depletion remains an emerging therapeutic approach, and even with favorable preclinical and early clinical pharmacology, Tegmo ketone may not demonstrate sufficient clinical efficacy to support regulatory approval or commercial adoption.
• Clinical development timelines and outcomes are uncertain, and data readouts may not meet efficacy or safety thresholds to support advancement to late-stage development.
• Seasonal and macroeconomic factors (such as severe weather) can impact quarterly revenue performance, and market adoption of Lactorsi may progress slower than projected.

Q: What drives the growing average treatment duration for Lactorsi, what is the first/second line split of new patient starts, and what is the expected long-term first-line share? / A: First-line (locally advanced and metastatic) patients consistently demonstrate longer treatment duration than later-line monotherapy patients, and this dynamic holds for both new and existing patients. Growing average duration reflects market adoption maturing post-launch, approaching the longer durations seen in clinical trials. Currently, 75-80% of new patients are in the metastatic setting (first and second line), with a smaller share in locally advanced recurrent disease. As adoption matures, the share of first-line and locally advanced patients is expected to increase, with targeted outreach now focused on this patient group. /

Q: What key metrics and next steps should investors expect from the upcoming mid-year Tegmo ketone data readouts for second-line HNSCC and upper GI cancer? / A: Initial data will include ORR, clinical benefit rate, and safety data for at least 50% of enrolled patients, with response durability taking longer to mature. Key outputs will include whether efficacy signals are strong enough to support regulatory pathways, and whether we can identify specific patient populations or enrichment strategies to justify late-stage development. Management will outline clear next steps based on these readouts. /

Q: How does the advancement of Lenovo's CCR8 antibody LM108 into Phase 3 development impact the validation of the mechanism and Coheris's competitive position? / A: The advancement of LM108 and Gilead's continued Phase 2 development of their CCR8 antibody validates the CCR8 Treg depletion mechanism, while the discontinuation of other programs reinforces that failures stem from poor drug pharmacology, not a flawed target. Tegmo ketone has already met all key pharmacology criteria for a high-quality CCR8 antibody, so the validation of the mechanism by other advancing programs is positive for the field and Coheris's position. /

Q: How do you reconcile the severe winter weather impact on Q1 Lactorsi revenue with the record new patient starts? Will the lost revenue be recovered? / A: Severe winter storms disrupted 2-3 weeks of Q1 activity, leading to missed treatment cycles for existing patients that will not be recovered, as patients simply reset their treatment cycle schedule. This matches a broader industry trend: a basket of 85 oncology products saw an average 10% Q4 to Q1 decline in 2026, double the historical 5% average. The weather impact did not affect new patient starts, which set a new record, and these new patients will drive future revenue growth in coming quarters, consistent with historical seasonal patterns where Q1 weakness is followed by a return to growth in Q2. /

Q: Is the company sufficiently funded to advance all ongoing Tegmo ketone and Casdoso ketone opportunities after positive mid-year data readouts? / A: The recent $54 million follow-on offering fully funds all currently planned clinical trials through all 2026 and 2027 data readouts, including the previously unfunded CRC and J&J prostate combination studies. The company's approach is to only initiate new trials after securing funding, and management does not currently anticipate needing additional resources for the existing focused development strategy.