Coherus Oncology Q2 Earnings Call Highlights

Key Points

• Clinical milestones are approaching: Coherus expects formal October data from its fully enrolled tagmokitug head-and-neck cancer cohort, additional tagmokitug results later in 2026, and initial casdozokitug liver-cancer data in the fourth quarter. Early findings suggested potential activity in PD-1-resistant disease, particularly among HPV-positive patients and those with higher TIRI scores, though the data remain preliminary.
• LOQTORZI momentum continued: Second-quarter net sales rose 15% sequentially to $13.6 million, supported by the highest number of new patient starts since launch. Coherus maintained its 2026 revenue outlook of $57 million to $62 million.
• Costs declined, but cash decreased: Research and development and selling, general and administrative expenses both fell year over year following the UDENYCA divestiture and broader cost reductions. Cash, cash equivalents and investments declined to $105.3 million, although the company said it expects sufficient funding through key 2026–2027 data readouts.

Coherus Oncology NASDAQ: CHRS said it is approaching several clinical data disclosures in the second half of 2026, while reporting continued growth for its LOQTORZI treatment and lower operating expenses following the divestiture of its UDENYCA franchise.

Chief Executive Officer Denny Lanfear said the company is in a period of initial clinical data generation rather than definitive data reporting. Coherus is focusing its development strategy on overcoming immune resistance in cancer, with particular attention to durability of clinical benefit and biomarker-based patient selection.

Tagmokitug studies advance toward data updates

Chief Medical Officer Dr. Rosh Dias said three studies have now completed full enrollment: the company’s first-line hepatocellular carcinoma study of casdozokitug, as well as tagmokitug cohorts in head and neck squamous cell carcinoma and colorectal cancer.

Tagmokitug is Coherus’ selective CCR8 cytolytic antibody designed to deplete regulatory T cells, or Tregs. The company is evaluating the candidate in combination with toripalimab, or tori, across several tumor types.

In the 40-patient second-line head and neck squamous cell carcinoma study, Coherus is evaluating two tagmokitug dose levels in combination with toripalimab among patients with PD-1-resistant disease. Dias said the cohort is fully enrolled and that the combination has so far shown an “acceptable and manageable” safety profile.

Based on an early subset of patients, Dias said the company has observed activity in response rates and treatment duration. Preliminary analysis of tumor samples also suggested that patients who were HPV-positive and those with higher tumor immune regulatory index, or TIRI, scores may show greater activity. He cautioned that the findings are based on a small number of patients, have not been formally cleaned and may change as data mature.

Coherus expects all patients in the head and neck cohort to have sufficient follow-up, along with completed biomarker analyses, to support a formal disclosure in October.

Chief Scientific and Development Officer Dr. Theresa LaVallee said the TIRI score is intended to help identify an immune context in which patients may benefit from tagmokitug treatment. She noted that the initial analysis was retrospective and involved limited patient numbers, but said the observed association between higher TIRI scores, HPV-positive tumors and clinical benefit was encouraging.

“The question that we will explore is whether the same TIRI score will enrich for clinical benefit in other tumor types or in the first-line setting with and without chemotherapy,” LaVallee said.

Coherus is also nearing completion of enrollment in a 40-patient second-line upper gastrointestinal adenocarcinoma cohort, including gastric, esophageal and gastroesophageal junction cancers. The company expects to report data later this year. Enrollment continues in second-line and first-line esophageal squamous cell carcinoma cohorts, and the first 20-patient colorectal cancer cohort has completed enrollment. Initial colorectal data are also anticipated later this year.

A third tagmokitug protocol is expected to begin in the fall, initially evaluating the drug with Johnson & Johnson’s T-cell engager pasritamig in metastatic castration-resistant prostate cancer.

Casdozokitug HCC data expected in fourth quarter

Coherus’ fully enrolled 72-patient first-line hepatocellular carcinoma study is evaluating casdozokitug with toripalimab and bevacizumab. The trial is designed to assess contribution of components, safety and efficacy, as well as support dose optimization under the FDA’s Project Optimus initiative.

Although enrollment was completed in March, Dias said only about half of participants have received three scans. Collection and analysis of circulating tumor DNA and baseline IL-27 measurements are also ongoing. Coherus expects initial data availability in the fourth quarter.

During the question-and-answer session, Dias said the company does not expect it will necessarily need to wait for a formal overall survival endpoint before deciding whether to advance the program into a Phase III study. He said future assessments will consider response rate, clinical benefit rate, durability, safety, ctDNA and baseline IL-27 levels.

LOQTORZI sales rise 15% sequentially

Chief Commercial Officer Sameer Goregaoker said second-quarter LOQTORZI net sales reached $13.6 million, up 15% from the prior quarter. He said demand returned to a 10% to 15% quarterly growth range after a seasonal slowdown earlier in the year, while the company recorded its highest number of new patient starts since launch.

Goregaoker said patient discontinuations returned to historical levels after a temporary increase in the first quarter, and duration of therapy continued to improve gradually. Coherus continues to target chemotherapy-only use in the community setting, off-label immuno-oncology use and appropriate treatment duration in nasopharyngeal carcinoma.

The company expects LOQTORZI revenue of $57 million to $62 million for full-year 2026. Goregaoker reiterated Coherus’ prior expectations for a $15 million quarter in 2026, a $30 million quarter in 2027 and peak market share by 2028.

He also said Coherus identified some potential dosing and treatment-duration education opportunities. The company has two LOQTORZI indications with different dosing schedules, and Goregaoker said some physicians may be using a three-week schedule where a two-week schedule is indicated. He described the issue as primarily educational and said the company is further analyzing its scale.

Expenses decline as legacy obligations are reduced

Chief Financial Officer Bryan McMichael said second-quarter research and development expense from continuing operations fell to $21.4 million from $26.3 million a year earlier. Selling, general and administrative expense declined to $21.0 million from $26.0 million, marking the sixth consecutive quarter of lower SG&A expense from continuing operations.

Coherus expects combined 2026 operating expenses of $170 million to $175 million. McMichael said the reductions reflected lower headcount, reduced clinical and manufacturing expenses, and lower operating costs after the company exited its biosimilar business.

Cash, cash equivalents and investments totaled $105.3 million at the end of the second quarter, compared with $167 million at the end of the first quarter. About $39 million of the decrease was related to transition services agreement obligations, which the company expects to be substantially diminished heading into 2027.

Coherus said it believes it has sufficient funding through key data readouts in 2026 and 2027. Legacy accrued rebates and reserves declined to $14.9 million from $28.8 million at the end of the first quarter, while TSA payables and accrued liabilities decreased to $22.7 million from $61.6 million.

About Coherus Oncology (NASDAQ:CHRS)

Coherus Oncology, Inc is a commercial-stage biopharmaceutical company focused on the development, manufacturing and commercialization of biologic therapies for oncology support and immuno-oncology. Founded in 2010 and headquartered in Redwood City, California, Coherus specializes in biosimilar versions of established oncology agents as well as novel immunotherapy candidates.

The company's lead marketed products include Udenyca (pegfilgrastim-cbqv) and Fulphila (pegfilgrastim-jmdb), biosimilars to Amgen's Neulasta, which are designed to reduce the incidence of infection in patients undergoing myelosuppressive chemotherapy.

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