On Tuesday, Coherus BioSciences, Inc. (NASDAQ:CHRS) saw its stock price rise more than 40% following the announcement of an asset purchase agreement with Intas Pharmaceuticals Ltd. for the sale of the UDENYCA franchise. The agreement is valued at up to $558.4 million and includes an upfront payment of $483.4 million, with the potential for additional net sales milestone payments totaling $75 million.
The company plans to use the proceeds from this transaction to fully repay $230 million in convertible notes due in April 2026 and to purchase certain royalty obligations related to UDENYCA for $49.1 million. . This sale is consistent with CoHealth’s strategic decision to focus on its immuno-oncology programs, including the FDA-approved PD-1 inhibitor LOQTORZI® and other important combination programs such as casdozokitug and CHS-114.
Coherus Chairman and CEO Denny Lanphier said the sale of UDENYCA will allow the company to leverage the value created by the franchise and focus resources on advancing its immuno-oncology pipeline. said. The move is also expected to significantly improve the company’s capital structure and business scale.
Citi analysts commented that the sale exceeded expectations on both valuation and timing, noting that it would eliminate financial excess and allow CoHealth to accelerate research and development in immuno-oncology.
The terms of the agreement, filed in Coherus’ latest report on Form 8-K, detail that Intas will receive assets related to the UDENYCA franchise, and that Coherus will use tax attributes to You expect to offset nearly all of your US federal income taxes. The transaction is subject to customary closing conditions and is expected to close by the end of the first quarter of 2025.
Coherus plans to focus on maximizing the value of LOQTORZI and advancing its innovative portfolio, with several milestones planned for its immuno-oncology program in the coming years. The company expects to reduce costs from the sale and expects to raise funds over two years after the transaction closes, with significant historical data not expected to be read out until 2026. JPMorgan Securities LLC and Latham & Watkins LLP are acting as financial and legal advisors, respectively. Coherus in transaction.
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