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    CHRS
    Earnings call· Jun 2026(Q2 FY26)

    Coherus Oncology Q2 FY26 earnings call CHRS

    Aug 5, 2026 Source

    Executive summary

    Coherus Oncology Q2 FY26 — Pipeline Data Maturation and LOQTORZI Growth

    Coherus Oncology is navigating an exciting period of pipeline data maturation for its Tagmokitug and Casdozokitug programs, with key readouts anticipated in the second half of the year. Concurrently, the company demonstrated strong commercial execution for LOQTORZI, achieving significant sales growth and new patient starts. Post-biosimilar divestiture, Coherus has substantially reduced its cost structure and liabilities, maintaining sufficient funding through upcoming data milestones.

    Highlights

    5

    • LOQTORZI net sales reached $13.6 million, representing a 15% quarter-over-quarter growth.

    • LOQTORZI demand rebounded to the 10% to 15% quarterly range, with the highest number of new patient starts since launch.

    • R&D expense from continuing operations decreased to $21.4 million, down from $26.3 million in Q2 2025.

    • SG&A expense from continuing operations decreased to $21.0 million, down from $26.0 million in Q2 2025.

    • Accrued rebates and reserves decreased from $28.8 million at Q1 to $14.9 million at Q2, primarily due to favorable changes in estimates.

    Concerns

    3

    • Cash, cash equivalents and investments decreased from $167 million at Q1 to $105.3 million at Q2.

    • The $37.5 million milestone earn-out from the UDENYCA divestiture was not achieved in Q2.

    • Casdozokitug HCC study data maturation is slower than anticipated, with only approximately 50% of patients having 3 scans.

    Guidance & targets

    4
    CategoryTargetConfidence
    Combined OpEx
    $170M-$175M
    medium materiality
    High
    LOQTORZI Net Revenue
    $57M-$62M
    high materiality
    High
    LOQTORZI Average Quarterly Growth
    10%-15%
    medium materiality
    High
    LOQTORZI Quarterly Revenue
    $15M
    medium materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    LOQTORZI (Toripalimab)
    Strong commercial execution, capitalizing on compelling 6-year data and preferred NCCN guidelines for Nasopharyngeal Carcinoma (NPC). Focus on converting chemotherapy-alone and off-label IO users. Expects average quarterly growth of 10%-15%.
    New patient starts: highest since launchPatient discontinuations: returned to longer-term historical levelsDuration of therapy: gradual improvements
    		$13.6M—15%—

    Operational metrics

    11
    R&D expense (continuing operations)
    $21.4Mdown from $26.3M in Q2 2025
    Q2 FY26

    R&D expense for continuing operations.

    SG&A expense (continuing operations)
    $21.0Mdown from $26.0M in Q2 2025
    Q2 FY26

    SG&A expense for continuing operations.

    Combined OpEx (guidance)
    $170M-$175M
    FY26

    Expected combined operating expenses for the full year.

    Accrued rebates and reserves
    $14.9Mdown from $28.8M at Q1
    Q2 FY26

    Reduction in liabilities from legacy biosimilar business.

    TSA payables and accrued liabilities
    $22.7Mdown from $61.6M at Q1
    Q2 FY26

    Reduction in liabilities from legacy biosimilar business. Expected to be substantially diminished as of 2027.

    Cash, cash equivalents and investments
    $105.3Mdown from $167M at Q1
    Q2 FY26

    Total cash and investments at quarter-end. Company believes it is sufficiently funded through key data readouts in 2026 and 2027.

    UDENYCA divestiture milestone earn-out
    $37.5Mnot achieved
    Q2 FY26

    Milestone payment from UDENYCA divestiture, based on buyer reported results.

    LOQTORZI average quarterly growth
    10%-15%
    Future quarters

    Expected average quarterly growth for LOQTORZI, supported by broader adoption.

    LOQTORZI new patient starts
    highest since launch
    Q2 FY26

    LOQTORZI achieved its highest number of new patient starts since launch.

    LOQTORZI patient discontinuations
    returned to historical levelsfollowing temporary increase in Q1
    Q2 FY26

    Patient discontinuations for LOQTORZI returned to longer-term historical levels.

    LOQTORZI duration of therapy
    gradual improvements
    Q2 FY26

    LOQTORZI is seeing gradual improvements in duration of therapy.

    Industry KPIs

    1
    MetricValueDetails
    Peak long term sales guidance$30MUSD

    Deals & partnerships

    1
    J&JCollaboration for combination study of Tagmokitug with Pasritamig (J&J's T-cell engager)

    A new protocol is designed to accommodate TAGMO combinations with novel agents, with its first cohort combining TAGMO with Pasritamig in metastatic castrate-resistant prostate cancer.

    Risks & headwinds

    3
    Slower data maturation for Casdozokitug in HCCInitial data availability pushed to Q4 2026.

    Only ~50% of patients have had 3 scans despite full enrollment in March.

    Mitigation: Ongoing ctDNA and baseline IL-27 level collection and analysis; management notes HCC data takes time to mature.

    UDENYCA divestiture milestone earn-out not achievedQ2 FY26

    $37.5 million milestone not achieved in Q2.

    Mitigation: Milestone remains eligible for achievement heading into Q3.

    Cash burn impacting liquidityQ2 FY26

    Cash, cash equivalents and investments decreased from $167 million at Q1 to $105.3 million at Q2.

    Mitigation: Management believes the company is sufficiently funded through key data readouts in 2026 and 2027; expects TSA obligations to be substantially diminished by 2027.

    What to watch in Q3 FY26

    5

    Tagmokitug HNSCC data disclosure

    October 2026
    CurrentPreliminary data shows activity, enrichment in HPV-positive/high TIRI.
    TargetFormal disclosure of mature data, including biomarker analysis.

    Why it matters

    Will provide critical insights into Tagmokitug's efficacy and patient enrichment strategy in a PD-1 resistant population.

    Current projections indicate we're likely to have all patients having had sufficient follow-up and biomarker analyses to enable a formal disclosure in October.

    Q&A highlights

    7

    Do you see potential to prospectively enroll TAGMO patients based on HPV status, and have you looked into oropharyngeal vs. non-oropharyngeal as an association factor?

    The plan is to continue accrual and follow-up, awaiting full biomarker data for formal communication in October. Oropharyngeal carcinoma, where HPV-positive disease is prevalent, will be part of the data analysis.

    “I think the plan right now, Paul, is to continue accrual and to continue follow-up, most importantly, obviously, to the head and neck cohort. We are still waiting for biomarker data samples to come in. So I think that will really inform how we proceed.”

    asked by Paul Jeng · answered by Rosh Dias

    2 min read5 chapters

    Detailed Narrative

    01

    Immune Resistance Strategy and Tagmokitug Development

    Coherus is focused on overcoming immune resistance in cancer, particularly through Treg depleting agents like tagmokitug. Tagmokitug is designed to remove immune brakes (Tregs), enhancing the depth and durability of response when combined with active agents like PD-1s. The development program is strategically constructed to identify optimal combinations, lines of therapy, and patient populations for long-term survival benefit, supported by a robust biomarker program.

    02

    Biomarker Insights and TIRI Score

    Preliminary data from Tagmokitug's TREGCHECK study in head and neck squamous cell carcinoma (HNSCC) suggests that a higher Tumor Immune Regulatory Index (TIRI) score and HPV-positive status may enrich for patient benefit. This early observation, though based on a small, retrospective dataset, is encouraging as it relates to the target CCR8-positive Tregs. The company aims to explore if the TIRI score can enrich for clinical benefit in other tumor types or first-line settings.

    03

    LOQTORZI Commercial Momentum

    LOQTORZI demonstrated strong commercial execution in Q2 FY26, with net sales reaching $13.6 million, a 15% quarter-over-quarter growth. This performance was driven by the highest number of new patient starts since launch and a rebound in demand. The commercial strategy focuses on educating physicians about compelling 6-year data and NCCN guidelines to displace chemotherapy-alone and off-label IO usage, particularly in the community setting.

    04

    Financial Restructuring and Liquidity

    One year after divesting the UDENYCA franchise, Coherus has significantly reduced its secured and convertible debt by over 90% and lowered its cost structure. R&D and SG&A expenses from continuing operations decreased year-over-year. The company also reduced legacy biosimilar liabilities, with accrued rebates and TSA payables decreasing substantially. Cash, cash equivalents, and investments stood at $105.3 million at quarter-end, with management asserting sufficient funding through key data readouts in 2026 and 2027.

    05

    Upcoming Pipeline Data Readouts

    Three studies have completed full enrollment: CADILYZE in first-line HCC, and TAGMO cohorts in head and neck squamous cell and colorectal cancer. Formal data disclosure for Tagmokitug's HNSCC cohort is anticipated in October, following further data maturation and biomarker analysis. Initial data for Casdozokitug in first-line HCC is expected in Q4 this year, though data maturation is taking longer than initially projected.

    AI-generated summary of the company’s earnings call. Not investment advice.