Coherus Announces Agreement to Divest Ophthalmology Franchise to Sandoz in $170 Million Upfront All Cash Deal
January 22 2024 - 1:15AM
Coherus BioSciences, Inc. (“Coherus,” NASDAQ: CHRS) today
announced it has entered into an agreement to divest its CIMERLI®
(ranibizumab-eqrn) ophthalmology franchise, inclusive of CIMERLI
and its supporting commercial infrastructure, to Sandoz for
upfront, all-cash consideration of $170 million plus an additional
amount for CIMERLI product inventory and subject to customary
working capital adjustments at the closing date. This divestiture
includes Coherus’ CIMERLI biologics license application,
ophthalmology sales and select field reimbursement teams, CIMERLI
product inventory on hand, and access to proprietary commercial
software.
“Since entering the ophthalmology market in 2022, we have gained
strong market share and created significant value in a non-core
therapeutic area by leveraging our buy-and-bill commercial
expertise. We believe it is prudent to now monetize these non-core
assets to pay down debt, reduce interest costs, and take the
opportunity to focus on our core therapeutic area, oncology,” said
Denny Lanfear, Chairman and Chief Executive Officer of Coherus.
“Additionally, this divestiture will allow us to reduce our
headcount and overhead costs, enhancing our sustainable and growing
oncology business.”
Coherus’ oncology assets include the UDENYCA®
(pegfilgrastim-cbqv) franchise, with three FDA-approved
presentations; LOQTORZI™ (toripalimab-tpzi), an FDA-approved,
next-generation PD-1 inhibitor; and an immuno-oncology pipeline of
next-generation tumor microenvironment oncology drug
candidates.
Closing is anticipated in the first half of 2024, subject to
certain closing conditions and approvals, including expiration or
termination of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976.
AdvisorsJ.P. Morgan Securities LLC is acting as
the Company’s financial advisor, and Latham & Watkins LLP is
acting as legal counsel to Coherus in connection with the
transaction.
Conference Call InformationWhen: Monday,
January 22, 2024, starting at 8:30 a.m. Eastern Time
To access the conference call, please pre-register through the
following link to receive dial-in information and a personal PIN to
access the live call:
https://register.vevent.com/register/BI6503dff137704129b680ec1b80115c2b
Please dial-in 15 minutes early to ensure a timely connection to
the call.
Webcast Link: https://edge.media-server.com/mmc/p/cpa5veqh A
replay of the webcast will be archived on the “Investors” section
of the Coherus website at http://investors.coherus.com.
About Coherus BioSciencesCoherus is a
commercial-stage biopharmaceutical company focused on the research,
development and commercialization of innovative immunotherapies to
treat cancer. Coherus is developing an innovative immuno-oncology
pipeline that will be synergistic with its proven commercial
capabilities in oncology.
Coherus’ immuno-oncology pipeline includes multiple antibody
immunotherapy candidates focused on enhancing the innate and
adaptive immune responses to enable a robust immunologic response
and enhance outcomes for patients with cancer. Casdozokitug is a
novel anti-IL-27 antibody currently being evaluated in two ongoing
clinical studies: a Phase 1/2 study in advanced solid tumors and a
Phase 2 study in hepatocellular carcinoma. CHS-114 is a highly
selective, competitively positioned, ADCC-enhanced anti-CCR8
antibody currently in a Phase 1/2 study as a monotherapy in
patients with advanced solid tumors. CHS-1000 is a preclinical
candidate targeting immune-suppressive mechanisms via the novel
pathway ILT4 with an IND filing planned in the first half of
2024.
Coherus markets LOQTORZI™ (toripalimab-tpzi), a novel next
generation PD-1 inhibitor, UDENYCA® (pegfilgrastim-cbqv), a
biosimilar of Neulasta®, CIMERLI® (ranibizumab-eqrn), a biosimilar
of Lucentis®, and YUSIMRY™ (adalimumab-aqvh), a biosimilar of
Humira®.
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,
statements regarding how Coherus will use the proceeds from the
divestiture; whether this divestiture will allow Coherus to reduce
headcount and overhead costs; whether Coherus’ oncology business
will continue to grow; and whether the closing of the divestiture
will occur and the timing of such closing. 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,
risks and uncertainties inherent in the clinical drug development
process; risks related to our existing and potential collaboration
partners; risks of the drug development position of Coherus’
competitors; the risks and uncertainties of the regulatory approval
process, including the speed of regulatory review, international
aspects of Coherus’ business; the timing of Coherus’ regulatory
filings; the risk of FDA review issues; the risk that Coherus is
unable to complete commercial transactions and other matters that
could affect the availability or commercial potential of Coherus’
drug candidates; the risk that Coherus is unable to close the
divestiture at all or without incurring substantial costs and other
resources; and the risks and uncertainties of possible litigation.
All forward-looking statements contained in this press release
speak only as of the date of this press release. Coherus undertakes
no obligation to update or revise any forward-looking statements.
For a further description of the significant 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 quarter ended September 30, 2023,
filed with the Securities and Exchange
Commission on November 6, 2023, including the section
therein captioned “Risk Factors” and in other documents that
Coherus files with the Securities and Exchange
Commission.
Coherus Contact InformationInvestors:Jami
Taylor, Head of Investor Relations
for CoherusIR@coherus.com
Media:Jodi Sievers, VP Corporate
Communicationsmedia@coherus.com
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