Coherus BioSciences rises 6% on LOQTORZI growth despite earnings miss
Oncology drug revenue doubles to $40.8M while debt reduction strengthens balance sheet
Coherus BioSciences shares rallied 6% on Tuesday, extending their gains from Monday's after-hours trading as investors looked past a quarterly earnings miss to focus on the company's rapidly growing oncology drug franchise and dramatically strengthened balance sheet.
The biotechnology company reported a fourth-quarter net loss of 39 cents per share, wider than analyst expectations which ranged from 31 to 36 cents, according to analyst forecasts compiled before the release. Quarterly revenue of $12.7 million fell short of the $14.1 million consensus estimate. Yet shares climbed as the market focused on LOQTORZI, the company's flagship cancer drug that saw revenue surge 64% year-over-year to $12.4 million in the fourth quarter.
Full-year LOQTORZI sales doubled to $40.8 million in 2025 from $19.1 million in 2024, marking a significant acceleration for the drug, which received FDA approval in October 2023 for treating nasopharyngeal carcinoma and launched commercially in the first quarter of 2024. The company has projected peak annual sales of $150 million to $200 million by mid-2028.
"We are pleased with our progress in 2025, having doubled LOQTORZI sales while completing the transformation from a biosimilars company to an innovative oncology company focused on overcoming immune resistance in cancer," said Denny Lanfear, Coherus chairman and chief executive officer, in the earnings announcement.
The balance sheet transformation proved equally impressive. Coherus reduced its secured and convertible debt by 90% from $480 million to $38.8 million over the 2024-2025 period, while ending the year with $172.1 million in cash, cash equivalents, and marketable securities. The debt reduction significantly improves the company's financial flexibility as it advances its pipeline.
Analysts remain broadly optimistic despite the earnings shortfall. The stock carries a "Strong Buy" consensus rating with an average 12-month price target of $6.75, representing roughly 250% upside from Monday's closing price of $1.82, according to analyst data. Individual targets range from $4 to $11, with Oppenheimer initiating coverage with an "Outperform" rating and $10 price target in January.
The company's pipeline progress provides additional catalysts for 2026. Coherus is advancing casdozokitug, a first-in-class IL-27 targeting antibody that demonstrated a 17% complete response rate in a previous Phase 2 study for first-line hepatocellular carcinoma. Additionally, the company is developing tagmokitug, a highly selective CCR8 targeting cytolytic antibody, with a broad clinical program across multiple tumor types including gastrointestinal cancers and head and neck cancer.
Management highlighted upcoming clinical readouts as key milestones. "We are now strategically positioned with growing revenues from our foundational PD-1 inhibitor, potential deal opportunities across the portfolio and geographies, and two promising pipeline candidates with multiple 2026 clinical readouts," Lanfear stated.
The stock's rally reflects investor confidence in Coherus's strategic pivot from biosimilars to oncology. Shares are trading up 6% to $1.93 in Tuesday afternoon trading, building on Monday's after-hours gains. The stock remains well below its 52-week high of $2.62 reached in late 2024 but has recovered significantly from its 52-week low of 71 cents.
The company's transformation strategy appears to be resonating with institutional investors, who hold approximately 35% of shares outstanding. Insiders retain about 15% ownership, according to market data.