Coherus Stock Slides on Revenue Miss, Testing Faith in Oncology Pivot
Preliminary Q4 revenue falls short of estimates, but firm projects strong growth for its key cancer drug LOQTORZI and confirms cash runway through 2026.
Shares of Coherus BioSciences (NASDAQ: CHRS) fell sharply in Tuesday trading after the company released preliminary fourth-quarter financial results that failed to meet analyst expectations, raising investor concerns just as the firm executes a critical pivot to an oncology-focused model.
The biotech company announced preliminary Q4 revenue of approximately $12.3 million, missing consensus estimates of $13.0 million by about 5.4%. The miss soured investor sentiment, overshadowing an otherwise optimistic forecast for its recently launched cancer therapy, LOQTORZI, and a stable financial position.
Coherus's stock price dropped significantly on the news, reflecting market anxiety over near-term execution. The negative reaction comes at a pivotal moment for the company, which has spent the past year divesting assets to sharpen its focus on the highly competitive cancer drug market. This strategic shift makes the commercial success of its new therapies, particularly LOQTORZI, paramount to its future valuation.
LOQTORZI, a treatment for nasopharyngeal carcinoma, is the cornerstone of the company's new strategy. Coherus sought to reassure investors by projecting robust quarter-over-quarter growth of 10% to 15% for the drug. The company expects LOQTORZI to generate annual revenues between $150 million and $200 million within the next three years, according to company presentations.
This growth trajectory is already in motion, with sales growing from $7.3 million in the first quarter of 2025 to $10 million in the second quarter. Management is betting that this momentum will convince shareholders to look past any immediate revenue shortfalls.
Underscoring its strategic transformation, Coherus recently completed the divestiture of its UDENYCA franchise in a deal valued at up to $558 million. That move, which finalized its transition into Coherus Oncology, was intended to streamline operations and fund its growing pipeline of cancer treatments.
To that end, the company confirmed it holds a healthy cash position of $172.1 million. Coherus stated these reserves are sufficient to fund its operations through 2026, providing a crucial two-year runway to execute its LOQTORZI launch and advance its clinical pipeline without needing to raise additional capital in the near term.
Despite the stock's decline, Wall Street analysts appear to retain a longer-term positive outlook. The average analyst price target sits at $5.67, significantly above its current trading level. This suggests that while traders are reacting to the immediate miss, analysts may be pricing in the future potential of LOQTORZI and the company's refocused oncology pipeline.
For investors, Coherus now represents a classic biotech narrative: weighing a near-term execution stumble against the promise of a long-term strategic pivot. The coming quarters will be critical to demonstrate that the growth of LOQTORZI can not only meet but exceed forecasts, validating the company's transformation and rewarding shareholders who weathered the current volatility.