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Coherus BioSciences Reports Corporate Highlights and Second Quarter 2019 Financial Results
– Company is Profitable and Cash flow Positive from Operations for Second Quarter –
– UDENYCA® is the Market Leading Pegfilgrastim Biosimilar with Approximately 13% Market Share –
Second Quarter 2019 Company Highlights
- Net product revenue for the second quarter of 2019 was
$83.4 millionand net income was $23.6 million, or $0.32per share on a fully diluted basis. Net income was $3.6 millionor $0.05per share on a fully diluted basis for the first half of 2019. Cash flow from operations for the quarter was also positive at $12.7 million.
- Uptake of UDENYCA® (pegfilgrastim-cbqv) is progressing strongly across all segments (340B hospitals, non-340B hospitals and community oncology clinics), with increased uptake in the 340B segment after receiving transitional pass-through status from
Centers for Medicare & Medicaid Serviceson April 1, 2019.
- After just two quarters on the market, UDENYCA® is the U.S. market leading pegfilgrastim biosimilar with greater than approximately 13% of unit market share at the end of
June 2019, and it is anticipated to reach over 20% of unit market share by the end of 2019.
Second Quarter 2019 Financial Results
- Net product revenue for the second quarter of 2019 was
$83.4 million. Cost of goods sold for the second quarter of 2019 was $0.6 million, resulting in a gross profit margin of 99 percent for the second quarter of 2019, up from 94 percent in the first quarter of 2019.
- Research and development (R&D) expense for the second quarter of 2019 was
$18.9 million, as compared to $26.5 millionfor the same period in 2018. R&D expense for the six months ended June 30, 2019was $37.7 million, as compared to $52.0 millionfor the same period in 2018. The decrease in R&D expense in both periods was primarily due to the capitalization of UDENYCA® manufacturing costs in the first quarter of 2019 and a decrease in CHS-0214 development costs.
- Selling, general and administrative (SG&A) expense for the second quarter of 2019 was
$36.5 million, as compared to $18.4 millionfor the same period in 2018. SG&A expense for the six months ended June 30, 2019was $69.1 million, as compared to $35.0 millionfor the same period in 2018. The increase in SG&A expense in 2019 was primarily attributable to the costs related to commercializing UDENYCA® in the United States, which included personnel and third-party services costs for commercial and marketing initiatives, as well as legal costs in support of litigations.
- Cash, cash equivalents and investments in marketable securities for the second quarter totaled
$111.9 millionat June 30, 2019, as compared to $96.4 millionat March 31, 2019and $72.4 millionat December 31, 2018. Cash flow from operations was $12.7 millionfor the second quarter of 2019.
- Net income attributable to the Company for the second quarter of 2019 was a 23.6 million, or
$0.32per share on a fully diluted basis, compared to a net loss of ($43.6) million, or ($0.68)per share on a basic and fully diluted basis for the same period in 2018.
Guidance for the Next Six Months from
- UDENYCA® (pegfilgrastim-cbqv) biosimilar to Neulasta® (pegfilgrastim)
• Continue as market leading pegfilgrastim biosimilar of choice.
• Achieve 2019 exit unit market share of 20% or greater.
• Increase penetration into all Neulasta dosage forms.
- CHS-1420, biosimilar candidate to Humira® (adalimumab)
• Complete certain development objectives to support BLA filing in 2020.
- CHS-0214, biosimilar candidate to Enbrel® (etanercept)
• Prepare for BLA supporting activities, pending legal developments.
- CHS-3351, biosimilar candidate to Lucentis® (ranibizumab) and CHS-2020, biosimilar candidate to Eylea® (aflibercept)
• Advance the development of the ophthalmology pipeline.
- CHS-131, small molecule, PPAR-g modulator drug candidate in nonalcoholic steatohepatitis (“NASH”)
• Initiate clinical phase program in NASH.
Conference Call Information
Dial-in: (844) 452-6826 (toll free) or (765) 507-2587 (International)
Conference ID: 9268814
Please join the conference call at least 10 minutes early to register. The webcast will be archived on the Coherus website.
UDENYCA® (pegfilgrastim-cbqv) is a PEGylated growth colony-stimulating factor indicated to decrease the incidence of infection, as manifested by febrile neutropenia, in patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs associated with a clinically significant incidence of febrile neutropenia. UDENYCA® drug substance manufacturing is located in
UDENYCA® is a leukocyte growth factor indicated to decrease the incidence of infection, as manifested by febrile neutropenia, in patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs associated with a clinically significant incidence of febrile neutropenia.
Limitations of Use
UDENYCA® is not indicated for the mobilization of peripheral blood progenitor cells for hematopoietic stem cell transplantation.
IMPORTANT SAFETY INFORMATION
Patients with a history of serious allergic reaction to human granulocyte colony-stimulating factors such as pegfilgrastim or filgrastim products.
Warnings and Precautions
- Fatal splenic rupture: Evaluate patients who report left upper abdominal or shoulder pain for an enlarged spleen or splenic rupture.
- Acute respiratory distress syndrome (ARDS): Evaluate patients who develop fever, lung infiltrates, or respiratory distress. Discontinue UDENYCA® in patients with ARDS.
- Serious allergic reactions, including anaphylaxis: Permanently discontinue UDENYCA® in patients with serious allergic reactions.
- Fatal sickle cell crises: Have occurred.
- Glomerulonephritis: Evaluate and consider dose-reduction or interruption of UDENYCA® if causality is likely.
Most common adverse reactions (≥ 5% difference in incidence compared to placebo) are bone pain and pain in extremity.
Full Prescribing Information available at www.UDENYCA.com
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, Coherus’ ability to reach over 20% of unit market share by the end of 2019 for UDENYCA® and continue as the market leading pegfilgrastim biosimilar of choice; Coherus’ ability to increase penetration into all Neulasta dosage forms; Coherus’ ability to complete certain development objectives for CHS-1420 to support BLA filing in 2020; Coherus’ ability to prepare for BLA supporting activities for CHS-0214 pending legal developments; Coherus’ plan to advance the development of the ophthalmology pipeline; and Coherus’ plan to initiate a clinical phase program for CHS-131 in NASH. Such forward-looking statements involve substantial risks and uncertainties that could cause Coherus’ actual results, performance or achievements to differ significantly from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risks and uncertainties inherent in the clinical drug development process; the risks and uncertainties of the regulatory approval process, including the timing of Coherus’ regulatory filings; the risk that Coherus is unable to complete commercial transactions and other matters that could affect the availability or commercial potential of Coherus’ biosimilar drug candidates; and the risks and uncertainties of possible patent litigation. All forward-looking statements contained in this press release speak only as of the date on which they were made. Coherus undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Coherus’ business in general, see Coherus’ Quarterly Report on Form 10-Q for the three months ended
UDENYCA® is a trademark of
Neulasta® and Enbrel® are registered trademarks of
Humira® is a registered trademark of
Lucentis® is a registered trademark of
Eylea® is a registered trademark of
|Coherus BioSciences, Inc.|
|Condensed Consolidated Statements of Operations|
|(in thousands, except share and per share data)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Net product revenue||$||83,433||$||-||$||120,531||$||-|
|Cost of goods sold||601||-||2,826||-|
|Research and development||18,883||26,519||37,672||51,974|
|Selling, general and administrative||36,456||18,391||69,139||34,968|
|Total operating expenses||55,940||44,910||109,637||86,942|
|Income (loss) from operations||27,493||(44,910||)||10,894||(86,942||)|
|Other income, net||558||3,642||1,369||3,780|
|Net income (loss) before income taxes||23,618||(43,685||)||3,614||(87,987||)|
|Income tax provision||51||-||51||-|
|Net income (loss)||23,567||(43,685||)||3,563||(87,987||)|
|Net loss attributable to non-controlling interest||-||47||-||52|
|Net income (loss) attributable to Coherus||$||23,567||$||(43,638||)||$||3,563||$||(87,935||)|
|Net income (loss) per share attributable to Coherus:|
|Weighted-average number of shares used in computing net
income (loss) per share attributable to Coherus:
|Coherus BioSciences, Inc.|
|Condensed Consolidated Balance Sheets|
|June 30,||December 31,|
|Cash and cash equivalents||$||105,927||$||72,356|
|Investments in marketable securities - short-term||5,991||-|
|Trade receivables, net||77,385||-|
|Liabilities and Stockholders’ Deficit|
|Convertible notes - related parties||25,972||25,773|
|Total stockholders' deficit||(3,985||)||(38,591||)|
|Total liabilities and stockholders’ deficit||$||240,456||$||99,467|
VP, Investor Relations & Corporate Affairs
+1 (650) 395-0196
Source: Coherus BioSciences, Inc.