CHRS

• Commercial Operations (Loctorsi):

  • Prioritizes physician education on Loctorsi's six-year long-term survival data, which has been shown to drive meaningful physician behavior change.
  • An innovative pilot program with a leading HCP AI platform is now live to enable more timely physician engagement.
  • Growth is driven by converting physicians who currently use chemotherapy alone or off-label IOs to Loctorsi; over half of addressable physicians have not yet adopted Loctorsi due to low awareness.
  • Observes gradual increases in treatment duration, with ongoing efforts to correct inappropriate dosing and early discontinuations driven by physician misunderstanding of label guidance.
  • Repeat utilization deepens over time as physicians gain experience with Loctorsi, reinforcing durable growth. The company is not pursuing combination use of Loctorsi in NPC (nasopharyngeal carcinoma) for the foreseeable future.

• Financial and Post-Divestiture Operations:

  • It has been one year since the Udenica franchise divestiture, which reduced secured and convertible debt by over 90%, lowered the overall cost structure, and cut core cash burn.
  • R&D expense from continuing operations was $21.4 million in Q2 2026, down from $26.3 million in Q2 2025, driven by headcount reductions, lower clinical trial costs, and lower R&D manufacturing costs.
  • SG&A expense from continuing operations was $21.0 million in Q2 2026, down from $26.0 million in Q2 2025, marking the sixth consecutive quarter of decreasing SG&A dating back to Q4 2024. The decrease stems from headcount and operating cost savings after exiting the biosimilar business.
  • Significant progress was made reducing legacy liabilities from the divested business: accrued rebates and reserves fell from $28.8 million at end-Q1 to $14.9 million at end-Q2 (mostly from favorable resolution of uncertainty, not cash use), and TSA payables/accrued liabilities fell from $61.6 million to $22.7 million. Management expects remaining obligations to be substantially settled by the end of 2026, ending associated cash burn.
  • Cash, cash equivalents, and investments totaled $105.3 million at end-Q2 2026, down from $167 million at end-Q1, with ~$39 million of the decrease going to settle TSA obligations. The company confirms it is sufficiently funded through key 2026 and 2027 data readouts.
  • The $37.5 million Q2 milestone from the Udenica divestiture was not achieved, but the milestone remains eligible for achievement in Q3, subject to final buyer results and purchase agreement adjustments.

• Clinical Pipeline:

  • The company is advancing pipeline programs Pertagmo (TAGMO), Tegmo Ketog, and Castozo Ketog to address immune resistance in cancer patients. Mature clinical data is scheduled for public disclosure in October 2026.

• Loctorsi is projected to reach $15 million quarterly revenue in 2026, $30 million quarterly revenue in 2027, and peak market share by 2028, consistent with prior projections.
• Average quarterly Loctorsi growth is expected to range between 10% and 15%, supported by broader adoption across physician segments.
• Total 2026 operating expenses from continuing operations are projected between $170 million and $175 million.
• Full year 2026 Loctorsi revenue is guided between $57 million and $62 million, in line with prior expectations.
• Management expects cash burn from remaining legacy divestiture obligations to be substantially diminished heading into 2027.

The company's only core product segment is Loctorsi, which delivered net revenue growth in line with management expectations. Full year 2026 Loctorsi revenue is projected between $57 million and $62 million. Loctorsi had its highest number of new patient starts since launch, with growing adoption and improving treatment duration. No other revenue-generating segments are reported, as the Udenica franchise was divested one year prior to this call.

• The Q2 milestone earn-out from the Udenica divestiture was not achieved; future achievement remains uncertain and subject to final buyer reporting and contract adjustments.
• Loctorsi adoption remains dependent on physician education to address low awareness among half of the addressable physician base, and on correcting dosing misunderstandings that can limit revenue.
• Clinical data readouts for pipeline programs are not yet mature, and final analysis of biomarker and efficacy data will not be available until October, creating near-term uncertainty around pipeline value.
• Early stage pipeline clinical development carries inherent uncertainty around efficacy, safety, and the timing of potential advancement to Phase 3 trials.

Q: Can the company stratify Pertagmo's head and neck cancer cohort by HPV status and oropharyngeal vs non-oropharyngeal disease, and when will Castozo move to Phase 3? / A: The company will continue patient accrual and follow-up while waiting for remaining biomarker samples, and will formally report stratified data including the oropharyngeal/HPV split in October. For Castozo, management does not expect to wait for full overall survival data to initiate Phase 3; mature response rate and durability data expected by the end of 2026 will inform the go/no-go decision. (312 characters)

Q: What drives Loctorsi's improving treatment duration, and what key metrics should investors watch for the upcoming Pertagmo head and neck data read? / A: Loctorsi growth is driven by ongoing conversion of physicians using chemotherapy/off-label IO, with gradual duration increases from growing first-line use. For Pertagmo, the trial enrolls PD-1 refractory patients, and management will analyze the time from prior progression to study entry to confirm the drug rescues immune resistance, plus CCR8 and other biomarkers to isolate Pertagmo's specific treatment effect. (367 characters)

Q: How will Loctorsi's long-term growth drivers evolve, and what metrics besides ORR matter for the October pipeline data read? / A: The top near-term priorities are increasing breadth of adoption (converting non-using physicians) and depth of adoption (driving repeat use), plus improving treatment duration by addressing inappropriate dosing. For all upcoming data reads, management highlights that clinical benefit rate, response durability, and safety/tolerability are critical metrics to evaluate alongside overall response rate, plus biomarker subgroup analysis. (359 characters)

Q: Can you share details on the reported Loctorsi dosing issue, how large it is, and what causes it? / A: Early claims data analysis found some physicians misdose Loctorsi: using 3-weekly dosing instead of the labeled 2-weekly dosing for later-line indications, and stopping treatment after 6 cycles instead of treating to progression per the label. It is primarily an awareness/education issue from low-frequency NPC treatment by community physicians, and management cannot yet quantify the revenue upside from correcting this. (348 characters)