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Coherus Biosciences, Inc.$19.27$.08.42%

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 Coherus BioSciences Reports Corporate Highlights and Second Quarter 2019 Financial Results
   Thursday, August 01, 2019 4:00:00 PM ET

– Company is Profitable and Cash flow Positive from Operations for Second Quarter –
 – UDENYCA® is the Market Leading Pegfilgrastim Biosimilar with Approximately 13% Market Share –

REDWOOD CITY, Calif., Aug. 01, 2019 (GLOBE NEWSWIRE) -- Coherus BioSciences, Inc. (“Coherus” or “the Company”, Nasdaq: CHRS), today reviewed corporate highlights and reported financial results for the quarter ended June 30, 2019

Second Quarter 2019 Company Highlights

  • Net product revenue for the second quarter of 2019 was $83.4 million and net income was $23.6 million, or $0.32 per share on a fully diluted basis. Net income was $3.6 million or $0.05 per share on a fully diluted basis for the first half of 2019. Cash flow from operations for the quarter was also positive at $12.7 million.
  • Uptake of UDENYCA® (pegfilgrastim-cbqv) is progressing strongly across all segments (340B hospitals, non-340B hospitals and community oncology clinics), with increased uptake in the 340B segment after receiving transitional pass-through status from Centers for Medicare & Medicaid Services on April 1, 2019.
  • After just two quarters on the market, UDENYCA® is the U.S. market leading pegfilgrastim biosimilar with greater than approximately 13% of unit market share at the end of June 2019, and it is anticipated to reach over 20% of unit market share by the end of 2019.

Second Quarter 2019 Financial Results

  • Net product revenue for the second quarter of 2019 was $83.4 million. Cost of goods sold for the second quarter of 2019 was $0.6 million, resulting in a gross profit margin of 99 percent for the second quarter of 2019, up from 94 percent in the first quarter of 2019.
  • Research and development (R&D) expense for the second quarter of 2019 was $18.9 million, as compared to $26.5 million for the same period in 2018. R&D expense for the six months ended June 30, 2019 was $37.7 million, as compared to $52.0 million for the same period in 2018. The decrease in R&D expense in both periods was primarily due to the capitalization of UDENYCA® manufacturing costs in the first quarter of 2019 and a decrease in CHS-0214 development costs.
  • Selling, general and administrative (SG&A) expense for the second quarter of 2019 was $36.5 million, as compared to $18.4 million for the same period in 2018. SG&A expense for the six months ended June 30, 2019 was $69.1 million, as compared to $35.0 million for the same period in 2018.  The increase in SG&A expense in 2019 was primarily attributable to the costs related to commercializing UDENYCA® in the United States, which included personnel and third-party services costs for commercial and marketing initiatives, as well as legal costs in support of litigations.
  • Cash, cash equivalents and investments in marketable securities for the second quarter totaled $111.9 million at June 30, 2019, as compared to $96.4 million at March 31, 2019 and $72.4 million at December 31, 2018. Cash flow from operations was $12.7 million for the second quarter of 2019.
  • Net income attributable to the Company for the second quarter of 2019 was a 23.6 million, or $0.32 per share on a fully diluted basis, compared to a net loss of ($43.6) million, or ($0.68) per share on a basic and fully diluted basis for the same period in 2018.

Guidance for the Next Six Months from June 30, 2019

  • UDENYCA® (pegfilgrastim-cbqv) biosimilar to Neulasta® (pegfilgrastim)
    • Continue as market leading pegfilgrastim biosimilar of choice.
    • Achieve 2019 exit unit market share of 20% or greater.
    • Increase penetration into all Neulasta dosage forms.
  • CHS-1420, biosimilar candidate to Humira® (adalimumab)
    • Complete certain development objectives to support BLA filing in 2020.
  • CHS-0214, biosimilar candidate to Enbrel® (etanercept)
    • Prepare for BLA supporting activities, pending legal developments.
  • CHS-3351, biosimilar candidate to Lucentis® (ranibizumab) and CHS-2020, biosimilar candidate to Eylea® (aflibercept)
    • Advance the development of the ophthalmology pipeline.
  • CHS-131, small molecule, PPAR-g modulator drug candidate in nonalcoholic steatohepatitis (“NASH”)
    • Initiate clinical phase program in NASH.

Conference Call Information

When: Thursday, August 1, 2019 starting at 4:30 p.m. ET
Dial-in: (844) 452-6826 (toll free) or (765) 507-2587 (International)
Conference ID: 9268814
Webcast:  http://investors.coherus.com
Please join the conference call at least 10 minutes early to register. The webcast will be archived on the Coherus website.

About UDENYCA®

UDENYCA® (pegfilgrastim-cbqv) is a PEGylated growth colony-stimulating factor indicated to decrease the incidence of infection, as manifested by febrile neutropenia, in patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs associated with a clinically significant incidence of febrile neutropenia. UDENYCA® drug substance manufacturing is located in Boulder, Colorado. Pegfilgrastim is one of the largest selling oncology biologics with worldwide revenues in excess of $4.5 billion in 2017.

Indication

UDENYCA® is a leukocyte growth factor indicated to decrease the incidence of infection, as manifested by febrile neutropenia, in patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs associated with a clinically significant incidence of febrile neutropenia.

Limitations of Use

UDENYCA® is not indicated for the mobilization of peripheral blood progenitor cells for hematopoietic stem cell transplantation.

IMPORTANT SAFETY INFORMATION

Contraindication

Patients with a history of serious allergic reaction to human granulocyte colony-stimulating factors such as pegfilgrastim or filgrastim products.

Warnings and Precautions

  • Fatal splenic rupture: Evaluate patients who report left upper abdominal or shoulder pain for an enlarged spleen or splenic rupture.
  • Acute respiratory distress syndrome (ARDS): Evaluate patients who develop fever, lung infiltrates, or respiratory distress. Discontinue UDENYCA® in patients with ARDS.
  • Serious allergic reactions, including anaphylaxis: Permanently discontinue UDENYCA® in patients with serious allergic reactions.
  • Fatal sickle cell crises: Have occurred.
  • Glomerulonephritis: Evaluate and consider dose-reduction or interruption of UDENYCA® if causality is likely.

Adverse Reactions

Most common adverse reactions (= 5% difference in incidence compared to placebo) are bone pain and pain in extremity.

To report SUSPECTED ADVERSE REACTIONS, contact Coherus BioSciences, Inc. at 1-800-4-UDENYCA (1-800-483-3692) or FDA at 1-800-FDA-1088 or www.fda.gov/medwatch .

Full Prescribing Information available at www.UDENYCA.com

About Coherus BioSciences, Inc.

Coherus BioSciences is a leading biosimilar company that develops and commercializes high-quality therapeutics for major regulated markets. Biosimilars are intended for use in place of existing, branded biologics to treat a range of chronic and often life-threatening diseases, with the potential to reduce costs and expand patient access. Composed of a team of proven industry veterans with world-class expertise in process science, analytical characterization, protein production, sales and marketing and clinical-regulatory development, Coherus BioSciences is positioned as a leader in the global biosimilar marketplace. Coherus BioSciences commercializes UDENYCA® (pegfilgrastim-cbqv) in the U.S. and has received regulatory approval for UDENYCA® in the European Union. Coherus BioSciences is advancing two late-stage clinical products towards commercialization, CHS-1420 (adalimumab biosimilar) and CHS-0214 (etanercept biosimilar), and developing a robust pipeline of future products in ophthalmology (including CHS-3351, a ranibizumab biosimilar, and CHS-2020, an aflibercept biosimilar), as well as CHS-131, a small molecule for nonalcoholic steatohepatitis (NASH) and multiple sclerosis. For additional information, please visit www.coherus.com .

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, Coherus’ ability to reach over 20% of unit market share by the end of 2019 for UDENYCA® and continue as the market leading pegfilgrastim biosimilar of choice; Coherus’ ability to increase penetration into all Neulasta dosage forms; Coherus’ ability to complete certain development objectives for CHS-1420 to support BLA filing in 2020; Coherus’ ability to prepare for BLA supporting activities for CHS-0214 pending legal developments; Coherus’ plan to advance the development of the ophthalmology pipeline; and Coherus’ plan to initiate a clinical phase program for CHS-131 in NASH. Such forward-looking statements involve substantial risks and uncertainties that could cause Coherus’ actual results, performance or achievements to differ significantly from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risks and uncertainties inherent in the clinical drug development process; the risks and uncertainties of the regulatory approval process, including the timing of Coherus’ regulatory filings; the risk that Coherus is unable to complete commercial transactions and other matters that could affect the availability or commercial potential of Coherus’ biosimilar drug candidates; and the risks and uncertainties of possible patent litigation. All forward-looking statements contained in this press release speak only as of the date on which they were made. Coherus undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Coherus’ business in general, see Coherus’ Quarterly Report on Form 10-Q for the three months ended March 31, 2019, filed with the Securities and Exchange Commission on May 9, 2019 and its future periodic reports to be filed with the Securities and Exchange Commission. Our results for the quarter ended March 31, 2019 are not necessarily indicative of our operating results for any future periods.

UDENYCA® is a trademark of Coherus BioSciences, Inc.
Neulasta® and Enbrel® are registered trademarks of Amgen Inc.
Humira® is a registered trademark of AbbVie Inc.
Lucentis® is a registered trademark of Genentech, Inc.
Eylea® is a registered trademark of Regeneron Pharmaceuticals, Inc.

Coherus BioSciences, Inc. 
Condensed Consolidated Statements of Operations 
(in thousands, except share and per share data) 
         
 Three Months Ended  Six Months Ended  
 June 30, June 30, 
                 
                 
  2019   2018   2019   2018  
                 
                 
 (unaudited) (unaudited) 
Revenue:        
Net product revenue$83,433  $-  $120,531  $-  
         
Operating expenses:        
Cost of goods sold 601   -   2,826   -  
Research and development 18,883   26,519   37,672   51,974  
Selling, general and administrative 36,456   18,391   69,139   34,968  
Total operating expenses 55,940   44,910   109,637   86,942  
Income (loss) from operations 27,493   (44,910)  10,894   (86,942) 
Interest expense (4,433)  (2,417)  (8,649)  (4,825) 
Other income, net 558   3,642   1,369   3,780  
Net income (loss) before income taxes 23,618   (43,685)  3,614   (87,987) 
Income tax provision 51   -   51   -  
Net income (loss) 23,567   (43,685)  3,563   (87,987) 
Net loss attributable to non-controlling interest -   47   -   52  
Net income (loss) attributable to Coherus$23,567  $(43,638) $3,563  $(87,935) 
Net income (loss) per share attributable to Coherus:        
Basic$0.34  $(0.68) $0.05  $(1.42) 
Diluted$0.32  $(0.68) $0.05  $(1.42) 
Weighted-average number of shares used in computing net
  income (loss) per share attributable to Coherus:
        
Basic 69,479,016   63,960,567   69,310,791   62,051,912  
Diluted 72,963,972   63,960,567   72,281,564   62,051,912  
                 

 

Coherus BioSciences, Inc. 
Condensed Consolidated Balance Sheets 
(in thousands) 
     
 June 30, December 31, 
  2019    2018   
 (unaudited)   
Assets     
Cash and cash equivalents$105,927  $72,356  
Investments in marketable securities - short-term 5,991   -  
Trade receivables, net 77,385   -  
Inventory 22,798   5,671  
Other assets 28,355   21,440  
Total assets$240,456  $99,467  
Liabilities and Stockholders’ Deficit    
Convertible notes$77,916  $77,319  
Convertible notes - related parties 25,972   25,773  
Term loan 73,286   -  
Other liabilities 67,267   34,966  
Total stockholders' deficit (3,985)  (38,591) 
Total liabilities and stockholders’ deficit$240,456  $99,467  
     

Contact

David S. Arrington
VP, Investor Relations & Corporate Affairs
Coherus BioSciences, Inc.
darrington@coherus.com
+1 (650) 395-0196

Coherus BioSciences, Inc. logo

Source: Coherus BioSciences, Inc.


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