0001564590-20-007416 | 10-K | XBRL Viewer

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Balance Sheet Classification of Lease Liabilities

The balance sheet classification of the lease liabilities was as follows (in thousands):

	December 31,
	2019
Operating lease liabilities
Other current liabilities	$	2,196
Lease liabilities, non-current		10,256
Total operating lease liabilities	$	12,452

Schedule of Maturities of Operating Lease Liabilities

As of December 31, 2019, the maturities of the operating lease liabilities were as follows (in thousands):

	Operating leases
Years ending December 31,
2020	$	3,141
2021		3,173
2022		3,034
2023		3,171
2024		2,614
Total lease payments		15,133
Less imputed interest		(2,681	)
Operating lease liabilities	$	12,452

Schedule Of Minimum Future Rental Commitments

The following table summarizes minimum future rental commitments related to noncancelable operating leases under the prior lease guidance as of December 31, 2018 (in thousands):

Years ending December 31,
2019	$	2,660
2020		2,695
2021		2,672
2022		2,518
Total minimum lease payments	$	10,545

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 177,668	$ 72,356
Restricted cash	0	50
Trade receivables, net	141,992	0
Inventory	9,807	1,659
Prepaid manufacturing	8,578	7,906
Other prepaid and other assets	4,964	2,462
Total current assets	343,009	84,433
Property and equipment, net	5,840	6,660
Inventory, non-current	45,264	4,012
Operating lease right-of-use assets	10,649	0
Intangible assets	2,620	2,620
Goodwill	943	943
Restricted cash, non-current	240	785
Other assets, non-current	362	14
Total assets	408,927	99,467
Current liabilities:
Accounts payable	25,985	15,294
Accrued rebates, fees and reserve	51,120	0
Accrued compensation	18,410	10,540
Accrued liabilities	17,258	7,008
Other current liabilities	2,196	419
Total current liabilities	114,969	33,261
Contingent consideration, non-current	102	60
Convertible notes	78,542	77,319
Convertible notes - related parties	26,181	25,773
Term loan	73,663	0
Lease liabilities, non-current	10,256	0
Other liabilities, non-current	0	1,645
Total liabilities	303,713	138,058
Commitments and contingencies (Note 8)
Stockholders’ equity (deficit):
Common stock, $0.0001 par value; Shares authorized: 300,000,000; Shares issued and outstanding: 70,366,661 and 68,302,681 at December 31, 2019 and 2018, respectively	7	7
Additional paid-in capital	1,000,763	946,515
Accumulated other comprehensive loss	(558)	(282)
Accumulated deficit	(894,998)	(984,831)
Total stockholders' equity (deficit)	105,214	(38,591)
Total liabilities and stockholders’ equity (deficit)	$ 408,927	$ 99,467

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Selling, general and administrative expenses from transactions with related party	$ 1	$ 181	$ 62
Interest expense from transactions with related party	2,457	2,421	2,388
Research and Development Expense
Research and development from transactions with related party	$ 52	$ 1,609	$ 8,199

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property Plant And Equipment [Line Items]
Total property and equipment	$ 22,136	$ 19,697
Accumulated depreciation and amortization	(16,296)	(13,037)
Property and equipment, net	5,840	6,660
Machinery and Equipment
Property Plant And Equipment [Line Items]
Total property and equipment	12,611	11,505
Computer Equipment and Software
Property Plant And Equipment [Line Items]
Total property and equipment	2,923	1,651
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	714	714
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total property and equipment	4,388	4,364
Construction in Progress
Property Plant And Equipment [Line Items]
Total property and equipment	$ 1,500	$ 1,463

Stockholders' Equity - Additional Information (Details) - USD ($)		1 Months Ended		12 Months Ended
	Oct. 28, 2016	Jan. 31, 2019	May 31, 2018	Dec. 31, 2018
At-the-Market Equity Offering Program
Class Of Stock [Line Items]
Common stock, shares issued and sold				1,799,504
Share price				$ 12.14
Gross proceeds from issuance of common stock				$ 21,800,000
Underwriting discounts and commissions				700,000
Offering expense				100,000
Common stock, net proceeds				$ 21,000,000.0
At-the-Market Equity Offering Program \| Cowen and Company LLC
Class Of Stock [Line Items]
Maximum amount of sales that agent may sell in shares of its common stock	$ 100,000,000
Percentage of gross sales proceeds of common stock payable as compensation	3.00%
Common stock, shares issued and sold		761,130
Share price		$ 11.17
Gross proceeds from issuance of common stock		$ 8,500,000
Underwriting discounts and commissions		300,000
Common stock, net proceeds		$ 8,200,000
Underwritten Public Offering
Class Of Stock [Line Items]
Common stock, shares issued and sold			5,948,274
Gross proceeds from issuance of common stock			$ 86,300,000
Underwriting discounts and commissions			5,200,000
Offering expense			300,000
Common stock, net proceeds			$ 80,800,000
Closing stock, price per share			$ 14.50
Underwriters' Option to Purchase Additional Shares
Class Of Stock [Line Items]
Common stock, shares issued and sold			775,861

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net income (loss)	$ 89,833	$ (209,409)	$ (238,286)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,259	3,235	3,398
Remeasurement of fair-value contingent consideration	42	(3,230)	(2,260)
Stock-based compensation expense	33,591	34,797	33,397
Non-cash accretion of discount on marketable securities	(165)	(301)	(156)
Non-cash interest expense from amortization of debt discount	2,339	1,484	1,352
Impairment of property and equipment	110	3,861	558
Excess and obsolete inventory	410	0	0
Loss (gain) on disposal of property and equipment	0	0	51
Non-cash bonus payment settled in common stock	0	0	2,668
Non-cash manufacturing postponement fee settled in common stock	0	0	4,125
Non-cash operating lease expense	1,789	0	0
Upfront and milestone expense related to license and collaboration arrangements	11,075	0	0
Changes in operating assets and liabilities:
Trade receivables, net	(141,992)	0	0
Receivables from collaboration and license agreement	0	0	1,859
Inventory	(48,184)	(5,484)	0
Prepaid manufacturing	(672)	7,063	7,788
Other prepaid and current assets	(2,126)	1,146	11,014
Other assets, non-current	(348)	(1)	0
Accounts payable	9,893	(301)	(3,810)
Accounts payable - related parties	0	(233)	(644)
Accrued rebates, fees and reserve	51,120	0	0
Accrued compensation	10,035	8,466	(4,871)
Accrued and other liabilities	10,386	69	(14,079)
Lease liabilities	(2,010)	0	0
Deferred revenue	0	0	(1,562)
Advance payments under license agreements	0	0	(1,070)
Other liabilities, non-current	(30)	(428)	242
Net cash provided by (used in) operating activities	28,355	(159,266)	(200,286)
Investing activities
Purchases of property and equipment	(1,822)	(789)	(4,573)
Purchases of investments in marketable securities	(20,235)	(42,869)	(74,344)
Proceeds from maturities of investments in marketable securities	20,400	43,170	74,500
Upfront and milestone payments related to license and collaboration arrangements	(11,075)	0	0
Purchase of non-controlling interest related to InteKrin Russia	0	(300)	0
Purchase of non-controlling interest related to InteKrin Russia - related party	0	(400)	0
Net cash used in investing activities	(12,732)	(1,188)	(4,417)
Financing activities
Proceeds from common stock offering, net of underwriters discounts, commissions and offering costs	8,153	101,748	131,305
Proceeds from private placement	0	0	75,000
Proceeds from term loan, net of issuance costs	72,955	0	0
Proceeds from issuances of common stock upon exercise of stock options	5,558	2,082	482
Proceeds from purchase under the employee stock purchase plan	3,519	1,591	0
Taxes paid related to net share settlement of bonus payout in RSUs	(815)	0	0
Net cash provided by financing activities	89,370	105,421	206,787
Effect of exchange rate changes in cash, cash equivalents and restricted cash	(276)	468	(120)
Net increase (decrease) in cash, cash equivalents and restricted cash	104,717	(54,565)	1,964
Cash, cash equivalents and restricted cash at beginning of period	73,191	127,756	125,792
Cash, cash equivalents and restricted cash at end of period	177,908	73,191	127,756
Supplemental disclosure of cash flow information
Cash paid for interest	15,263	8,200	8,200
Cash paid for income taxes	1,732	0	0
Supplemental disclosures of non-cash investing and financing activities
Purchase of property and equipment in accounts payable and accrued liabilities	999	272	77
Non-cash non-controlling interest reflected in additional paid in capital	0	1,359	0
Right-of-use assets obtained in exchange for lease obligations	5,267	0	0
Non-cash employee bonuses settled in common stock	1,350	0	2,668
Common stock offering costs in accounts payable and accrued liabilities	0	75	115
Manufacturing services settled in common stock	$ 0	$ 0	$ 6,810

Commitments and Contingencies - Schedule of Non-Cancellable Purchase Commitment (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2020	$ 25,011
2021	30,991
2022	8,403
Total obligations	$ 64,405

Stock Option Plans and Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Reflected in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 33,591	$ 34,797	$ 33,397
Capitalized stock-based compensation expense into inventory	1,735	0	0
Cost of Goods Sold
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	108	0	0
Research and Development Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	12,912	15,339	15,104
General and Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 20,571	$ 19,458	$ 18,293

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 5,089	$ 2,851
Work in process	43,446	1,576
Finished goods	6,536	1,244
Total	$ 55,071	$ 5,671

Collaboration and License Agreements

12 Months Ended

Dec. 31, 2019

Collaboration And License Agreements [Abstract]

Collaboration and License Agreements

7.	Collaboration and License Agreements

Bioeq AG

On November 4, 2019, the Company entered into a license agreement with Bioeq IP AG (now Bioeq AG, or “Bioeq”) for the commercialization of a biosimilar version of ranibizumab (Lucentis) in certain dosage forms in both a vial and pre-filled syringe presentation (the “Licensed Products”). Under this agreement, Bioeq granted to the Company an exclusive, royalty-bearing license to commercialize the Licensed Products in the field of ophthalmology (and any other approved labelled indication) in the United States. Bioeq will supply to the Company the Licensed Products in accordance with terms and conditions specified in the agreement and a manufacturing and supply agreement to be executed by the parties in accordance therewith. The agreement’s initial term continues in effect for ten years after the first commercial sale of a Licensed Product in the United States, and thereafter renews for an unlimited period of time unless otherwise terminated in accordance with its terms.

Under the agreement, Bioeq must use commercially reasonable efforts to develop and obtain regulatory approval of the Licensed Products in the U.S. in accordance with a development and manufacturing plan, and the Company must use commercially reasonable efforts to commercialize the Licensed Products in accordance with a commercialization plan. Additionally, the Company must commit certain pre-launch and post-launch resources to the commercialization of the Licensed Products for a limited time as specified in the agreement.

The Company treated the licensing transaction as an asset acquisition under the relevant accounting rules. The Company paid Bioeq an upfront and a milestone payment aggregating to €10 million ($11.1 million), which was recorded as research and development expense in the Company’s consolidated statement of operations for the year ended December 31, 2019. The Company is obligated to pay Bioeq an aggregate of up to €25 million in additional milestone payments in connection with the achievement of certain development and regulatory milestones with respect to the Licensed Products in the United States. The Company will share a percentage of gross profits on sales of Licensed Products in the United States with Bioeq in the low to mid fifty percent range. The additional milestone payments and royalties are contingent upon future events and, therefore, will be recorded when it is probable that a milestone will be achieved or when royalties are due.

Daiichi Sankyo

The Company recognized revenue related to the collaboration and license agreement of $1.6 million from Daiichi Sankyo for the year ended December 31, 2017.

In January 2012, the Company entered into a license agreement with Daiichi Sankyo (the “License Agreement”), under which the Company granted certain licenses to Daiichi Sankyo to develop and commercialize biosimilar forms of etanercept and rituximab in Japan, Taiwan, and South Korea with an option to develop in China. Upon execution of the agreement, Daiichi Sankyo paid a non-refundable, upfront license fee of $10.0 million, which was recorded as deferred revenue and amortized over the remaining estimated performance period under the agreement using the straight-line method. The agreement had an initial term of ten years.

The Company identified the following deliverables under the agreement: (1) the transfer of intellectual property rights (license), and (2) the manufacture of drug materials for clinical development purposes. The Company considered the provisions of the multiple-element arrangement guidance in determining how to recognize the total consideration of the agreement. The Company concluded that the license was not a separate unit of accounting because Daiichi Sankyo could not benefit from the use of the license rights for their intended purpose without the products manufactured by the Company. Daiichi Sankyo relied upon the Company to manufacture and supply the products necessary for Daiichi Sankyo’s development because the related manufacturing know-how specific to the products is proprietary to the Company and Daiichi Sankyo does not have the right to manufacture the licensed product. The Company determined that neither of the deliverables have standalone value and, therefore, the deliverables were accounted for as a single unit of accounting with the upfront fee recognized as revenue on a straight-line basis over its estimated period of performance of approximately three years, which was regularly evaluated for reasonableness and revised as deemed appropriate on a prospective basis. The Company determined that the straight-line method of revenue recognition was most appropriate for this agreement given there is no discernable pattern of its performance under the arrangement.

In June 2015, the Company and Daiichi Sankyo entered into the Memorandum of Understanding No. 3 (the “MOU 3”) in which both parties agreed to cooperate further on a global Phase 3 clinical trial for an open label, safety extension study (“OLSES”) in rheumatoid arthritis. Daiichi Sankyo was responsible for a minimum of 20% of the cost of the clinical trial. The Company also entered into a clinical supply agreement as part of MOU 3 in which the Company supplied finished study drug and study comparator drug for Daiichi Sankyo’s use in the Japanese portion of the product’s clinical trial. Daiichi Sankyo reimbursed these research and development costs in quarterly advance payments, and the Company recognized these advance payments as a reduction in the research and development expense when the research and development activity was performed.

In July 2016 and December 2016, the Company entered into three memoranda of understanding (“MOU 4,” “MOU 5” and “MOU 6,” and together with MOU 3, the “MOUs”) with Daiichi Sankyo. Under MOU 4, MOU 5 and MOU 6, the Company received $4.5 million for reimbursements of certain past costs incurred and the Company recognized these reimbursements as a reduction of research and development expenses when the research and development activity was performed. The Company accounted for the above MOUs as a separate arrangement, which was not deemed to be a material modification of the License Agreement.

In July 2017, Daiichi Sankyo announced its decision, which was accepted by the Company, to discontinue development of the Company’s etanercept (Enbrel) biosimilar product candidate, CHS-0214, in Japan and to conclude the parties’ global open-label safety extension study in rheumatoid arthritis. Pursuant to the License Agreement, the Company regained the rights to develop and commercialize CHS-0214 in Japan. As a result of Daiichi Sankyo’s decision to opt-out of the development of CHS-0214 in Japan and not having any further performance obligations under the license arrangement, the Company recognized the remaining deferred revenue of $1.4 million as a collaboration and license revenue during the second quarter of 2017 in its consolidated statement of operations.

On August 9, 2017, the Company and Daiichi Sankyo entered into a letter of agreement, dated July 29, 2017 to terminate the License Agreement, including, any and all MOUs and other agreements executed between the parties relating to CHS-0214. As a result, the Company only recognized MOU cost reimbursement of $4.2 million for the year ended December 31, 2017 as a reduction of research and development expense in its consolidated statements of operations.

Debt Obligations - Components of Interest Expense on Term Loan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Accretion of debt discount and debt issuance costs	$ 2,339	$ 1,484	$ 1,352
Term Loan
Debt Instrument [Line Items]
Stated coupon interest	7,063
Accretion of debt discount and debt issuance costs	709
Interest expense	$ 7,772

Income Taxes - Reconciliation of Statutory U.S. Federal Rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Percent of pre-tax income:
U.S. federal statutory income tax rate	21.00%	21.00%	34.00%
State taxes, net of federal benefit	1.51%	0.16%	0.80%
Foreign rate differences	(0.04%)	(0.05%)	(2.21%)
Permanent items	(0.64%)	0.15%	(0.19%)
Research and development credit	(4.77%)	2.61%	2.10%
U.S. Tax Reform tax rate change	0.00%	0.00%	(36.90%)
Other	0.55%	2.23%	(0.21%)
Change in valuation allowance	(14.44%)	(26.10%)	(1.94%)
Effective income tax rate	3.17%	0.00%	0.00%
Accounting Standards Update 2016-09
Percent of pre-tax income:
Effect in NOLs due to adoption of ASU 2016-09	0.00%	0.00%	4.55%

Related Party Transactions - Additional Information (Details) - USD ($)	1 Months Ended		12 Months Ended
	Sep. 30, 2018	Feb. 28, 2014	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Feb. 29, 2016
Related Party Transaction [Line Items]
Research and development expense			$ 94,188,000	$ 110,239,000	$ 162,389,000
Selling, general and administrative expenses from transactions with related party			1,000	181,000	62,000
Payments to acquire securities of non-controlling interest in subsidiary			0	300,000	0
RUSSIA \| InteKrin Therapeutics Inc
Related Party Transaction [Line Items]
Payments to acquire securities of non-controlling interest in subsidiary	$ 700,000
Percentage of securities acquired	17.50%
Mr. Lanfear \| RUSSIA \| InteKrin Therapeutics Inc
Related Party Transaction [Line Items]
Consideration received for shares	$ 400,000
InteKrin Therapeutics Inc
Related Party Transaction [Line Items]
Business combination consideration transferred		$ 5,000,000.0
Medpace Inc
Related Party Transaction [Line Items]
Research and development expense				1,500,000	8,200,000
Board of Directors \| Recruiting Services
Related Party Transaction [Line Items]
Research and development expense			52,000	130,000	17,000
Related party balances			0	0
Selling, general and administrative expenses from transactions with related party			$ 1,000	$ 181,000	$ 62,000
Affiliated Entity
Related Party Transaction [Line Items]
Aggregate principal amount						$ 25,000,000.0
Chief Executive Officer \| InteKrin Russia \| InteKrin Therapeutics Inc \| Mr. Lanfear
Related Party Transaction [Line Items]
Related party transaction ownership percentage		10.00%

Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Abstract]
Domestic	$ 92,584	$ (208,843)	$ (222,674)
Foreign	190	(496)	(15,496)
Total	$ 92,774	$ (209,339)	$ (238,170)

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Depreciation and amortization		$ 3,259	$ 3,235	$ 3,398
Impairment of property and equipment		$ 100	$ 3,900	$ 600
Machinery and Equipment \| Research and Development Expense
Property Plant And Equipment [Line Items]
Impairment of property and equipment	$ 3,900

Leases - Additional Information (Details) $ in Thousands		1 Months Ended		12 Months Ended
Leases - Additional Information (Details) $ in Thousands	Oct. 31, 2019 USD ($) ft²	Sep. 30, 2019 ft²	Jul. 31, 2015 USD ($) ft²	Dec. 31, 2019 USD ($) Facility	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Lessee Lease Description [Line Items]
Area of office space leased \| ft²		47,789	40,341
Number of laboratory facility structure \| Facility				2
Additional area of office space leased \| ft²		7,448
Future minimum rental payments					$ 10,545
Cash paid for amounts included in measurement of lease liabilities				$ 2,700
Weighted average remaining lease term				4 years 8 months 12 days
Weighted average operating discount rate				8.20%
Rent expense				$ 2,400	$ 2,200	$ 2,300
Corporate Headquarters Lease
Lessee Lease Description [Line Items]
Aggregate tenant improvement allowance			$ 1,400
Lease expiration date		2024-09	2022-11
Leases extended expiration period		5 years	5 years
Laboratory Facilities Lease
Lessee Lease Description [Line Items]
Extended lease term date one				Jun. 30, 2020
Extended lease term date two				Dec. 31, 2020
New Camarillo Lease
Lessee Lease Description [Line Items]
Lease expiration date	2027-05
Leases extended expiration period	5 years
Area of laboratory facility \| ft²	25,017
Future minimum rental payments	$ 1,800

Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions

16.	Related Party Transactions

Transactions Associated with Medpace Agreement

A prior member of the Company’s board of directors is also the president and chief executive officer of Medpace Inc. (“Medpace”). As such, Medpace was deemed to be a related party until the director’s resignation on March 1, 2018. As a result, the Company no longer reflects balances and transactions associated with Medpace as related party in its consolidated financial statements as of March 1, 2018. The Company recognized $1.5 million and $8.2 million during years ended December 31, 2018 and 2017, respectively, for services rendered by Medpace within research and development expense in the consolidated statements of operations.

Recruiting Services

One member of the Company’s board of directors was a partner of a firm that provided recruiting services to the Company. As such, the recruiting services provided were deemed to be related party transactions. As of December 31, 2019 and 2018, there were no such related party balances in the Company’s consolidated balance sheets. The Company recorded in research and development expense in its consolidated statements of operations, $52,000, $130,000 and $17,000 for the years ended December 31, 2019, 2018 and 2017, respectively, for services rendered by the recruiting company. The Company recorded in selling, general and administrative expense in its consolidated statements of operations, $1,000, $181,000 and $62,000 for the years ended December 31, 2019, 2018 and 2017, respectively, for services rendered by the recruiting company.

Convertible Notes — Related Parties

In February 2016, the Company issued Convertible Notes to certain related parties (some companies affiliated with members of the Company’s board of directors), for an aggregate principal amount of $25.0 million (see Note 8 for related party disclosure).

InteKrin Acquisition

In February 2014, the Company completed the acquisition of the InteKrin for total consideration of $5.0 million. Mr. Dennis M. Lanfear, the chief executive officer of the Company, was the chairman of the board and acting president of InteKrin at the time of the acquisition. As such, the InteKrin acquisition was a related party transaction. Mr. Lanfear also owned 10% of the outstanding securities of InteKrin Russia, a majority owned subsidiary of InteKrin.

In September 2018, InteKrin acquired the outstanding 17.5% of securities of InteKrin Russia held by its non-controlling owners for $0.7 million. As a result of this purchase of the non-controlling ownership in InteKrin Russia, Mr. Lanfear, who was one of the non-controlling stockholders of InteKrin Russia, received $0.4 million in consideration for his shares.

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Adoption of Topic 842 In Condensed Consolidated Balance Sheet (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Jan. 01, 2019

Dec. 31, 2018

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease right-of-use asset

$ 10,649

$ 7,200

$ 0

Operating lease, liability, current

2,196

Operating lease liability noncurrent

$ 10,256

9,200

Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease right-of-use asset

7,172

Other current liabilities

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease, liability, current

^[1]

419

Other current liabilities | Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease, liability, current

^[1]

2,084

Other lease liabilities, non-current

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease liability noncurrent

^[2]

$ 1,645

Other lease liabilities, non-current | Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease liability noncurrent

^[2]

7,111

Adjustments Due to the Adoption of Topic 842 | Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease right-of-use asset

7,172

Adjustments Due to the Adoption of Topic 842 | Other current liabilities | Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease, liability, current

^[1]

1,665

Adjustments Due to the Adoption of Topic 842 | Other lease liabilities, non-current | Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease liability noncurrent

^[2]

$ 5,466

[1]	Includes current portion of deferred rent and current portion of operating lease liabilities.
[2]	Non-current portion of deferred rent and operating lease liabilities.

Debt Obligations - Schedule of Future Payments on the Term Loan (Details) - Term Loan $ in Thousands	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
2020	$ 7,244
2021	7,224
2022	7,224
2023	39,346
2024 and beyond	47,494
Total minimum payments	108,532
Less amount representing interest	(30,532)
Term Loan, gross	78,000
Less debt discount and debt issuance costs on Convertible Notes	(4,337)
Net carrying amount	$ 73,663

Net Income (Loss) Per Share Attributable to Coherus

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Income (Loss) Per Share Attributable to Coherus

15.	Net Income (Loss) Per Share Attributable to Coherus

The following table sets forth the computation of the basic and diluted net income (loss) per share attributable to the Company (in thousands, except share and per share data):

	Years Ended December 31,
	2019		2018			2017
Basic net income (loss) per share
Numerator:
Net income (loss) attributable to Coherus	$	89,833	$	(209,339	)	$	(238,170	)
Denominator:
Weighted-average common shares outstanding		69,679,916		65,034,827			53,133,620
Basic net income (loss) per share attributable to Coherus	$	1.29	$	(3.22	)	$	(4.48	)
Diluted net income (loss) per share
Numerator:
Net income (loss) attributable to Coherus	$	89,833	$	(209,339	)	$	(238,170	)
Numerator for diluted net income (loss) per share attributable to Coherus		89,833		(209,339	)		(238,170	)
Denominator:
Denominator for basic net income (loss) per share attributable to Coherus		69,679,916		65,034,827			53,133,620
Add effect of potential dilutive securities:
Stock options, including purchases from contributions to ESPP		3,491,272		—			—
Restricted stock units		14,755		—			—
Denominator for diluted net income (loss) per share attributable to Coherus		73,185,943		65,034,827			53,133,620
Diluted net income (loss) per share attributable to Coherus	$	1.23	$	(3.22	)	$	(4.48	)

The following outstanding dilutive potential shares were excluded from the calculation of diluted net income (loss) per share attributable to Coherus due to their anti-dilutive effect:

	Year Ended December 31,
	2019		2018		2017
Stock options, including purchases from contributions to ESPP		10,412,471		14,743,547		11,433,069
Restricted stock units		22,068		44,387		120,377
Shares issuable upon conversion of Convertible Notes		4,473,871		4,473,871		4,473,871
Total		14,908,410		19,261,805		16,027,317

Inventory - Schedule of Balance Sheet Classification (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventory	$ 9,807	$ 1,659
Inventory, non-current	45,264	4,012
Total	$ 55,071	$ 5,671

Revenue - Additional Information (Details) - USD ($)	12 Months Ended
Revenue - Additional Information (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Concentration of Revenue [Line Items]
Net product revenue	$ 356,071,000	$ 0	$ 1,556,000
Net Product Revenue
Concentration of Revenue [Line Items]
Net product revenue	$ 356,071,000	$ 0	$ 0

Revenue - Revenue by Significant Customer (Details) - Net Product Revenue - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2019
Concentration Risk [Line Items]
Percentage of total revenue	100.00%
McKesson
Concentration Risk [Line Items]
Percentage of total revenue	42.00%
AmeriSource-Bergen Corp
Concentration Risk [Line Items]
Percentage of total revenue	33.00%
Cardinal
Concentration Risk [Line Items]
Percentage of total revenue	23.00%
Others
Concentration Risk [Line Items]
Percentage of total revenue	2.00%

Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value Measurements Recurring Basis - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 155,763	$ 71,897
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	102	60
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	155,763	71,897
Level 1 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	0	0
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0	0
Level 2 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	0	0
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0	0
Level 3 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	102	60
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	155,523	71,062
Money Market Funds \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	155,523	71,062
Money Market Funds \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0	0
Money Market Funds \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0	0
Restricted Cash (Money Market Funds)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	240	835
Restricted Cash (Money Market Funds) \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	240	835
Restricted Cash (Money Market Funds) \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0	0
Restricted Cash (Money Market Funds) \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 0	$ 0

Debt Obligations - Schedule of Future Payments on the Convertible Notes (Details) - 8.2% Senior Convertible Notes Due March 2022 $ in Thousands	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
2020	$ 8,200
2021	8,200
2022	111,050
Total minimum payments	127,450
Less amount representing interest	(18,450)
Convertible Notes, principal amount	109,000
Less debt discount and debt issuance costs on Convertible Notes	(4,277)
Net carrying amount	$ 104,723

Leases - Schedule of Minimum Future Rental Commitments (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 2,660
2020	2,695
2021	2,672
2022	2,518
Total minimum lease payments	$ 10,545

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

10.

Leases

In July 2015, the Company entered into the office space for its corporate headquarters in Redwood City, California under an operating lease agreement, which has been subject to amendments to secure additional space such that the total headquarters leased space is approximately 40,341 square feet. The lease agreement (as amended, the “Lease Agreement”) provides for aggregate tenant improvement allowance of $1.4 million, which was amortized as a reduction to rent expense on a straight-line basis over the lease term prior to the adoption of Topic 842 (see Note 2). Additionally, the Lease Agreement, provides for certain limited rent abatement and contains annual scheduled rent increases over the lease term. The lease terminates in November 2022 and contains a one-time option to extend the lease term for five years.

The Company also leases two laboratory facilities in Camarillo, California under an operating lease agreement, which has been subject to several amendments necessary to secure additional space and extend the lease term to June 30, 2020, and December 31, 2020 on the facilities.

Effective upon the adoption of Topic 842, the Company evaluated the above facility leases and determined that they were all operating leases. In determining the present value of the lease payments, the Company used the incremental borrowing rate based on the information available at the adoption date. The lease option to extend the lease term for five years was not included as part of the right-of-use asset or lease liability as the Company was not reasonably certain it would exercise this option. The Company also performed an evaluation of its other contracts with Customers and suppliers in accordance with Topic 842 and determined that, except for the facility leases described above, none of its contracts contain a lease.

Certain of the Company’s lease agreements contain lease components (for example, fixed payments such as rent) and non-lease components such as common-area maintenance costs. Both of these types of provisions are accounted for as a single lease component. For such arrangements, there may be variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. These variable lease payments, which are primarily comprised of common-area maintenance, utilities, and real estate taxes that are passed on from the lessor in proportion to the space leased by the Company within the entire building or building complex, are recognized in the period in which the obligation for those payments is incurred.

In September 2019, the Company amended the Lease Agreement to secure additional space of approximately 7,448 rentable square feet, which resulted in the total headquarters leased space of approximately 47,789 rentable square feet, and also extended the total headquarters lease term through September 2024. The Lease Agreement amendment contains a one-time option to extend its term for five years. The Company evaluated the above Lease Agreement amendment under Topic 842 and determined that the lease modification did not result in two separate contracts and the lease continues to be an operating lease. Additionally, in determining the present value of the new lease payments, the Company used the incremental borrowing rate based on the information available at lease modification date of September 2019. The lease option to extend the lease term for five years was not included as part of the right-of-use asset or lease liability as the Company was not reasonably certain it would exercise this option.

In October 2019, the Company entered into a new laboratory facility lease (“New Camarillo Lease”) of approximately 25,017 square feet in a new location of Camarillo, California as the current Camarillo lease terminates in June 2020 and December 2020. The New Camarillo Lease provides for certain limited rent abatement and annual scheduled rent increases over the lease term. The lease commences in April 2020 and terminates in May 2027, and contains a one-time option to extend the lease term for five years. The future minimum rental payments for this lease are $1.8 million. The Company has not obtained control over the leased facility as of December 31, 2019, as a result, the right-of-use asset and lease liability related to the new Camarillo lease was not reflected in the consolidated financial statements of the Company as of December 31, 2019.

The balance sheet classification of the lease liabilities was as follows (in thousands):

	December 31,
	2019
Operating lease liabilities
Other current liabilities	$	2,196
Lease liabilities, non-current		10,256
Total operating lease liabilities	$	12,452

Cash paid for amounts included in the measurement of the lease liabilities for the year ended December 31, 2019 was $2.7 million, and was included in net cash provided by operating activities in the consolidated statements of cash flows.

As of December 31, 2019, the maturities of the operating lease liabilities were as follows (in thousands):

	Operating leases
Years ending December 31,
2020	$	3,141
2021		3,173
2022		3,034
2023		3,171
2024		2,614
Total lease payments		15,133
Less imputed interest		(2,681	)
Operating lease liabilities	$	12,452

As of December 31, 2019, the weighted average remaining lease term was 4.7 years and the weighted average operating discount rate used to determine the operating lease liabilities was 8.2%. Rent expense was $2.4 million, $2.2 million and $2.3 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The following table summarizes minimum future rental commitments related to noncancelable operating leases under the prior lease guidance as of December 31, 2018 (in thousands):

Years ending December 31,
2019	$	2,660
2020		2,695
2021		2,672
2022		2,518
Total minimum lease payments	$	10,545

Income Taxes - Provision for (Benefit From) Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current
Federal	$ 0	$ 0	$ 0
State	2,942,000	0	0
Foreign	0	0	0
Subtotal	2,942,000	0	0
Deferred
Federal	0	0	0
State	0	0	0
Foreign	0	0	0
Subtotal	0	0	0
Provision for income taxes	$ 2,942,000	$ 0	$ 0

Fair Value Measurements - Summary of Changes in the Estimated Fair Value of Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 60	$ 3,290
Change in fair value of the contingent consideration liability	42	(3,230)
Ending balance	$ 102	$ 60

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward
Balance at beginning of year	$ 18,115	$ 15,682	$ 18,682
Additions based on tax positions related to current year	1,206	1,276	3,387
Additions (reductions) for tax positions of prior years	(7,718)	1,157	(6,387)
Balance at end of year	$ 11,603	$ 18,115	$ 15,682

Balance Sheet Components

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Components

5.	Balance Sheet Components

Property and Equipment, Net

Property and equipment, net are as follows (in thousands):

	December 31,			December 31,
	2019			2018
Machinery and equipment	$	12,611		$	11,505
Computer equipment and software		2,923			1,651
Furniture and fixtures		714			714
Leasehold improvements		4,388			4,364
Construction in progress		1,500			1,463
Total property and equipment		22,136			19,697
Accumulated depreciation and amortization		(16,296	)		(13,037	)
Property and equipment, net	$	5,840		$	6,660

Depreciation and amortization expense was $3.3 million, $3.2 million and $3.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. In the third quarter of 2018, the Company identified an impairment indicator in machinery and equipment and upon further analysis recorded an impairment loss of $3.9 million within research and development expense in the consolidated statement of operations, given the undiscounted future cash flows were less than the carrying amount of the related machinery and equipment. Impairment of property and equipment was $0.1 million, $3.9 million and $0.6 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Accrued Liabilities

Accrued liabilities are as follows (in thousands):

	December 31,		December 31,
	2019		2018
Accrued clinical and manufacturing	$	7,106	$	3,950
Accrued other		10,152		3,058
Accrued liabilities	$	17,258	$	7,008

Net Income (Loss) Per Share Attributable to Coherus - Computation of Basic and Diluted Net Income (Loss) Per Share Attributable to the Company (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income (loss)					$ (62,596)	$ (58,808)	$ (43,638)	$ (44,297)	$ 89,833	$ (209,339)	$ (238,170)
Denominator:
Weighted-average common shares outstanding									69,679,916	65,034,827	53,133,620
Basic net income (loss) per share attributable to Coherus	$ 0.56	$ 0.67	$ 0.34	$ (0.29)					$ 1.29	$ (3.22)	$ (4.48)
Numerator:
Net income (loss)					$ (62,596)	$ (58,808)	$ (43,638)	$ (44,297)	$ 89,833	$ (209,339)	$ (238,170)
Numerator for diluted net income (loss) per share attributable to Coherus									$ 89,833	$ (209,339)	$ (238,170)
Denominator:
Denominator for basic net income (loss) per share attributable to Coherus									69,679,916	65,034,827	53,133,620
Add effect of potential dilutive securities:
Stock options, including purchases from contributions to ESPP									3,491,272	0	0
Restricted stock units									14,755	0	0
Denominator for diluted net income (loss) per share attributable to Coherus									73,185,943	65,034,827	53,133,620
Diluted net income (loss) per share attributable to Coherus	$ 0.53	$ 0.63	$ 0.32	$ (0.29)					$ 1.23	$ (3.22)	$ (4.48)

Restructuring - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost And Reserve [Line Items]
Aggregate restructuring charges		$ 3,600,000
Payments for personnel-related restructuring charges	$ 2,100,000
Restructuring liabilities			$ 0	$ 0
Research and Development Expense
Restructuring Cost And Reserve [Line Items]
Non-cash stock-based compensation expense		300,000
Selling, General and Administrative Expenses
Restructuring Cost And Reserve [Line Items]
Non-cash stock-based compensation expense		1,200,000
Termination Severance and Related Costs \| Research and Development Expense
Restructuring Cost And Reserve [Line Items]
Aggregate restructuring charges		1,000,000.0
Termination Severance and Related Costs \| Selling, General and Administrative Expenses
Restructuring Cost And Reserve [Line Items]
Aggregate restructuring charges		$ 1,100,000

Restructuring

12 Months Ended

Dec. 31, 2019

Restructuring And Related Activities [Abstract]

Restructuring

13. Restructuring

On June 21, 2017, the Company commenced and completed a restructuring plan to reduce operating costs to better align its workforce with the needs of its business following the FDA’s June 2017 issuance of a CRL for its BLA for UDENYCA™, in which the FDA stated that it cannot approve the Company’s BLA for UDENYCA™ in its present form and provided recommendations to the Company to address the issues raised in the letter.

In connection with the restructuring, the Company recorded aggregate restructuring charges in its consolidated statement of operations of $3.6 million in 2017. The restructuring charges included one-time termination fees and other employee-related costs of $1.0 million and $1.1 million in research and development and selling, general and administrative expenses in the 2017 consolidated statement of operations, respectively. Additionally, non-cash stock-based compensation expense related to the acceleration of stock options and the extension of post-termination stock option exercise periods of $0.3 million and $1.2 million was reflected in research and development and selling, general and administrative expenses in the 2017 consolidated statement of operations, respectively. In the first quarter of 2018, the Company fully settled the $2.1 million of personnel-related restructuring charges, therefore there were no restructuring balances reflected in the Company’s balance sheet as of December 31, 2019 and 2018.

Subsequent Event - Additional Information (Details) - Innovent Biologics (Suzhou) Company Limited License Agreement - Subsequent Event $ in Millions	Jan. 13, 2020 USD ($)
Subsequent Event [Line Items]
License agreement upfront payment	$ 5.0
Option exercise fess	5.0
Maximum
Subsequent Event [Line Items]
Aggregate milestone payment in connection with achievement of certain development, regulatory and sales milestones.	40.0
Technology transfer for the manufacturing of licensed product related fees	$ 10.0

Revenue

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue

The Company initiated U.S. sales of UDENYCA^® on January 3, 2019. The Company recorded net product revenue of $356.1 million during the year ended December 31, 2019. There was no product revenue during the years ended December 31, 2018 or 2017.

Revenue by significant Customer was distributed as follows:

	Year Ended
	December 31, 2019
	Percent of Total
McKesson		42	%
AmeriSource-Bergen Corp		33	%
Cardinal		23	%
Others		2	%
Total revenue		100	%

Product Sales Discounts and Allowances

The activities and ending reserve balances for each significant category of discounts and allowances, which constitute variable consideration, were as follows (in thousands):

	Chargebacks						Other Fees,
	and Discounts						Co-pay
	for Prompt						Assistance
	Payment			Rebates			and Returns			Total
Balance at December 31, 2018	$	—		$	—		$	—		$	—
Activity related to 2019 sales		226,901			46,810			70,775			344,486
Payments and customer credits issued		(191,742	)		(19,316	)		(46,281	)		(257,339	)
Balance at December 31, 2019	$	35,159		$	27,494		$	24,494		$	87,147

Chargebacks and discounts for prompt payment are recorded as a reduction in trade receivables, and the remaining reserve balances are classified as current liabilities in the accompanying consolidated balance sheets.

Stock Option Plans and Stock-Based Compensation - Summary of Additional Information Related to Status of Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options outstanding, Number of Options	17,811,671	14,674,553
Options vested and exercisable, Number of Options	10,699,012
Options outstanding, Weighted-Average Exercise Price	$ 14.582	$ 14.202
Options vested and exercisable, Weighted-Average Exercise Price	$ 14.456
Options outstanding, Weighted-Average Contractual Terms	6 years 7 months 20 days
Options vested and exercisable, Weighted-Average Contractual Terms	5 years 7 months 20 days
Options outstanding, Aggregate Intrinsic Value	$ 93,797
Options vested and exercisable, Aggregate Intrinsic Value	$ 65,412

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Payables And Accruals [Abstract]
Accrued clinical and manufacturing	$ 7,106	$ 3,950
Accrued other	10,152	3,058
Accrued liabilities	$ 17,258	$ 7,008

Supplementary Data - Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The following table presents certain unaudited consolidated quarterly financial information for each of the quarters ended December 31, 2019 and 2018:

	2019 Quarter End
(in thousands, except per share data)	March 31			June 30			September 30			December 31
Total revenue	$	37,098		$	83,433		$	111,684		$	123,856
Gross profit		34,873			82,832			105,237			116,051
Total operating expenses		53,697			55,940			59,843			78,823
Net income (loss)		(20,004	)		23,567			47,043			39,227
Net income (loss) per share attributable to Coherus:
Basic		(0.29	)		0.34			0.67			0.56
Diluted		(0.29	)		0.32			0.63			0.53
	2018 Quarter End
	March 31			June 30			September 30			December 31
Total revenue	$	—		$	—		$	—		$	—
Total operating expenses		42,032			44,910			56,972			60,502
Net loss		(44,302	)		(43,685	)		(58,826	)		(62,596	)
Net loss attributable to Coherus		(44,297	)		(43,638	)		(58,808	)		(62,596	)
Net loss per share attributable to Coherus, basic and diluted		(0.74	)		(0.68	)		(0.87	)		(0.92	)

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Schedule of Non-Cancellable Purchase Commitment

As of December 31, 2019, the Company’s non-cancellable purchase commitment was as follows (in thousands):

Year ending December 31,
2020	$	25,011
2021		30,991
2022		8,403
Total obligations	$	64,405

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Income tax provision	$ 2,942,000	$ 0	$ 0
Increase (decrease) in valuation allowance	(13,400,000)	54,600,000	4,600,000
Unrecognized tax benefits, accrued interest and penalties accrued	0	0	0
Unrecognized tax benefits	11,603,000	$ 18,115,000	$ 15,682,000	$ 18,682,000
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 642,200,000
Net operating loss carryforwards expiration year	2035
Tax credit carryforwards	$ 42,900,000
Tax credit carryforwards expiration year	2031
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 46,300,000
Net operating loss carryforwards expiration year	2031
Tax credit carryforwards	$ 15,100,000

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Revenue by Geographical Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 356,071	$ 0	$ 1,556
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	356,071	0	0
Rest of the world
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 0	$ 0	$ 1,556

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2019	Jan. 31, 2020	Jun. 30, 2019
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	CHRS
Entity Registrant Name	Coherus BioSciences, Inc.
Entity Central Index Key	0001512762
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Common Stock, Shares Outstanding		70,624,365
Entity Public Float			$ 1.4
Entity File Number	001-36721
Entity Tax Identification Number	27-3615821
Entity Address, Address Line One	333 Twin Dolphin Drive
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Redwood City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94065
City Area Code	650
Local Phone Number	649 - 3530
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Security Exchange Name	NASDAQ
Document Annual Report	true
Document Transition Report	false
Documents Incorporated by Reference	Part III incorporates by reference certain information from the registrant’s definitive proxy statement for the 2020 Annual Meeting of Stockholders.

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net are as follows (in thousands):

	December 31,			December 31,
	2019			2018
Machinery and equipment	$	12,611		$	11,505
Computer equipment and software		2,923			1,651
Furniture and fixtures		714			714
Leasehold improvements		4,388			4,364
Construction in progress		1,500			1,463
Total property and equipment		22,136			19,697
Accumulated depreciation and amortization		(16,296	)		(13,037	)
Property and equipment, net	$	5,840		$	6,660

Schedule of Accrued Liabilities

Accrued Liabilities

Accrued liabilities are as follows (in thousands):

	December 31,		December 31,
	2019		2018
Accrued clinical and manufacturing	$	7,106	$	3,950
Accrued other		10,152		3,058
Accrued liabilities	$	17,258	$	7,008

Stock Option Plans and Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Option Plans and Stock-Based Compensation

12.	Stock Option Plans and Stock-Based Compensation

Equity Incentive Plans

In October 2014, the Company’s board of directors and its stockholders adopted the 2014 Equity Incentive Plan (the “2014 Plan”), which became effective upon the closing of the Company’s IPO on November 6, 2014. The 2014 Plan is subject to automatic annual increases in the number of shares available for issuance on the first business day of each fiscal year equal to four percent (4%) of the number of shares of the Company’s common stock outstanding as of such date or a lesser number of shares as determined by the Company’s board of directors. All remaining shares under the Company’s 2010 Stock Plan (the “2010 Plan”) were transferred to the 2014 Plan upon adoption and any additional shares than would otherwise return to the 2010 Plan as a result of forfeiture, termination or expiration of the awards will return to the 2014 Plan. The 2014 Plan provided for the Company to grant shares and/or options to purchase shares of common stock to employees, directors, consultants and other service providers. As of December 31, 2019, the Company had 420,581 shares of common stock available for future issuance.

In June 2016, the Company adopted the 2016 Employment Commencement Incentive Plan (the “2016 Plan”). The 2016 Plan is designed to comply with the inducement exemption contained in Nasdaq’s Rule 5635(c)(4), which provides for the grant of non-qualified stock options, restricted stock units, restricted stock awards, performance awards, dividend equivalents, deferred stock awards, deferred stock units, stock payment and stock appreciation rights to a person not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to the individual’s entering into employment with the Company. As of December 31, 2019, the Company had 230,795 shares of common stock available for future issuance for new employees. The 2016 Plan does not provide for any annual increases in the number of shares available.

Stock Options

Incentive stock options and non-statutory stock options may be granted with exercise prices of not less than the fair value of the common stock on the date of grant. These stock options generally vest over four years, expire in ten years from the date of grant and are generally exercisable after vesting.

The following table sets forth the summary of option activities under the 2016 and 2014 Plans:

	Options Outstanding
	Number of Options			Weighted-Average Exercise Price
Balances at December 31, 2018		14,674,553		$	14.202
Granted - at fair value		5,328,500			15.137
Exercised		(863,940	)		6.869
Forfeited/Cancelled		(1,327,442	)		17.630
Balances at December 31, 2019		17,811,671		$	14.582

Additional information related to the status of options as of December 31, 2019 is summarized as follows:

Number of

Options

Weighted-

Average

Exercise

Price

Weighted-

Average

Contractual

Terms

(Years)

Aggregate Intrinsic Value (in thousands)

Options outstanding

17,811,671

14.582

6.64

93,797

Options vested and exercisable

10,699,012

14.456

5.64

65,412

During the years ended December 31, 2019, 2018 and 2017, the estimated weighted-average grant-date fair value of options granted was $9.52, $7.77 and $11.70 per share, respectively, and the aggregate intrinsic value of options exercised was $10.3 million, $4.9 million and $2.1 million, respectively.

The Company recognized stock-based compensation expenses of $30.0 million, $31.4 million and $29.0 million for the years ended December 31, 2019, 2018 and 2017, respectively, related to employee stock options. As of December 31, 2019, total unrecognized stock-based compensation expenses related to unvested employee stock options was $56.4 million, which is expected to be recognized on a straight-line basis over a weighted-average period of approximately 2.9 years.

Restricted Stock Units

In August 2017, the Compensation Committee of the Company’s board of directors approved the granting of restricted stock units (“RSUs”) to its employees. RSUs are share awards that entitle the holder to receive freely tradable shares of our common stock upon vesting. The RSUs cannot be transferred and are subject to forfeiture if the holder’s employment terminates prior to the release of the vesting restrictions. The Company’s RSUs generally vest over two to three years from the applicable grant date, provided the employee remains continuously employed with the Company. The fair value of RSUs is equal to the closing price of our common stock on the applicable grant date of the RSUs.

The following table sets forth the summary of RSUs activity, under the 2014 Plan:

	RSUs Outstanding
	Number of RSUs			Weighted-Average Grant Date Fair Value
Balances at December 31, 2018		44,387		$	12.700
RSUs granted		282,804			15.114
RSUs vested		(214,819	)		12.457
RSUs cancelled		(7,622	)		15.798
Balances at December 31, 2019		104,750		$	19.544

The total fair value of RSUs vested was $2.7 million and $1.0 million during the years ended December 31, 2019 and 2018, respectively. The total fair value of RSUs vested during the year ended December 31, 2017 was $2.9 million, which included a $2.7 million bonus payout settled in RSUs. The total estimated grant date fair value of RSUs was $4.3 million and $78,000 during the years ended December 31, 2019 and 2018, respectively. The total estimated grant date fair value of RSUs during the year ended December 31, 2017 was $6.4 million, which included a $4.3 million bonus payout settled in RSUs. The estimated weighted-average grant-date fair value per share of RSUs granted during the years ended December 31, 2019, 2018 and 2017 was $15.11, $15.60 and $10.43, respectively.

The Company recognized stock-based compensation expenses related to RSUs of $0.8 million, $0.7 million and $0.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, total unrecognized stock-based compensation expenses related to unvested RSUs was $1.3 million, which is expected to be recognized on a straight-line basis over a weighted-average period of approximately 1.2 years.

Performance Stock Options (“PSOs”)

In April 2018, the Compensation Committee of the Company’s board of directors approved the granting of performance stock option awards to senior officers. PSOs represent a contingent right to purchase the common stock of the Company upon achievement of specified conditions. The PSOs granted will vest upon the achievement of commercial launch and certain sales goals related to UDENYCA^®. The Company recognized stock-based compensation expense of $0.8 million and $0.5 million, and $0 for the years ended December 31, 2019, 2018 and 2017, respectively, related to PSOs.

Nonemployees Stock-Based Compensation

The Company granted 10,000 shares of RSUs and no stock options to purchase shares of common stock to nonemployees during the year ended December 31, 2019. The Company granted 147,500 and 60,000 stock options to purchase shares of common stock to nonemployees during the years ended December 31, 2018 and 2017, respectively. The weighted-average exercise price of the options granted in 2018 and 2017 was $14.32 and $13.47 per share, respectively. For the years ended December 31, 2019, 2018 and 2017, the Company recorded stock-based compensation expense related to options and RSUs granted to nonemployees of $0.7 million, $1.6 million and $1.9 million, respectively. On January 1, 2019, the Company adopted the ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payment to employees, with certain exceptions. Prior to the adoption of ASU No. 2018-07, the Company remeasures the fair value of the unvested nonemployee options at each period using the Black-Scholes option-pricing model reflecting the same assumptions as applied to employee options in each of the reported years, other than the expected life, which is assumed to be the remaining contractual life of the options.

Employee Stock Purchase Plan

In October 2014, the Company’s board of directors and its stockholders approved the establishment of the 2014 Employee Stock Purchase Plan (“ESPP”). The ESPP provides for annual increases in the number of shares available for issuance on the first business day of each fiscal year equal to the lesser of one percent (1%) of the number of shares of the Company’s common stock outstanding as of such date or a number of shares as determined by the Company’s board of directors. The ESPP had 2,316,555 shares of common stock available for future issuance as of December 31, 2019. Eligible employees may purchase common stock at 85% of the lesser of the fair market value of the Company’s common stock on the first or last day of the offering period. The offering periods of ESPP are on May 16 and November 16. The Company recognized stock-based compensation expenses related to ESPP of $1.3 million, $0.8 million and $80,000 for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, there was $0.8 million of unrecognized compensation expense associated with the ESPP, which is expected to be recognized over an estimated weighted-average period of 4.5 months.

Stock-Based Compensation

The stock-based compensation expense is reflected in the consolidated statements of operations as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Cost of goods sold (1)	$	108	$	—	$	—
Research and development		12,912		15,339		15,104
General and administrative		20,571		19,458		18,293
Stock-based compensation expense	$	33,591	$	34,797	$	33,397

Capitalized stock-based compensation expense into inventory	$	1,735	$	—	$	—

(1)

Stock-based compensation capitalized into inventory is recognized as cost of sales when the related product is sold.

Valuation Assumptions of Awards Granted to Employees

The Company estimated the fair value of each stock option and awards granted under the ESPP on the date of grant using the Black-Scholes option-pricing model. The following table illustrates the weighted average assumptions for the Black-Scholes option-pricing model used in determining the fair value of the awards during the years ended December 31, 2019, 2018 and 2017:

	Year Ended December 31,
	2019			2018			2017
Expected term (years)
Stock options		6.00			6.00			6.00
ESPP		0.50			0.50			0.50
Expected volatility
Stock options		69	%		71	%		76	%
ESPP		61	%		71	%		68	%
Risk-free interest rate
Stock options		2.29	%		2.77	%		2.01	%
ESPP		1.89	%		2.40	%		1.42	%
Expected dividend yield
Stock options		0	%		0	%		0	%
ESPP		0	%		0	%		0	%

Expected Term: The expected term represents the period for which the stock-based awards are expected to be outstanding and is based on the options’ vesting term and contractual term. The Company elected to use the “simplified method” for estimating the expected term, which is calculated as the mid-point between the vesting period and the contractual term of the options, as it has limited historical information to develop expectations about future exercise patterns and post-vesting employment termination behavior.

Expected Volatility: The expected volatility for the year ended December 31, 2019 is based on the Company’s historical stock price volatility. The expected volatility for the years ended December 31, 2018 and 2017 is based on an average historical stock price volatility of industry peers as the Company did not have sufficient trading history for its common stock in those reporting periods.

Risk-Free Interest Rate: The Company based the risk-free interest rate by using an equivalent to the expected term based on the U.S. Treasury constant maturity rate as of the date of grant.

Expected Dividends: The Company has not paid and does not anticipate paying any dividends in the near future, and therefore used an expected dividend yield of zero in the valuation model

401(k) Retirement Plan

In 2019, the Company’s Compensation Committee approved the Company’s matching of the employees 401(k) Plan (the 401(k) Plan) whereby eligible employees may elect to contribute up to the lesser of 99% of their annual compensation or the statutorily prescribed annual limit allowable under Internal Revenue Service regulations. During 2019, the Company made matching contributions of 50% of the first $6,000 of each participant’s contributions into the 401(k) Plan. The Company recorded compensation expense related to the match of $0.8 million for the year ended December 31, 2019.

Stock Option Plans and Stock-Based Compensation - Summary of RSU Activity, under 2014 Plan (Details) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of RSU's granted	10,000
Weighted-Average Grant Date Fair Value, RSU's granted	$ 15.11	$ 15.60	$ 10.43
2014 Equity Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of RSU's, Balances at December 31, 2018	44,387
Number of RSU's granted	282,804
Number of RSU's vested	(214,819)
Number of RSU's cancelled	(7,622)
Number of RSU's, Balances at December 31, 2019	104,750	44,387
Weighted-Average Grant Date Fair Value, Balances at December 31, 2018	$ 12.700
Weighted-Average Grant Date Fair Value, RSU's granted	15.114
Weighted-Average Grant Date Fair Value, RSU's Vested	12.457
Weighted-Average Grant Date Fair Value, RSU's cancelled	15.798
Weighted-Average Grant Date Fair Value, Balances at December 31, 2019	$ 19.544	$ 12.700

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	70,366,661	68,302,681
Common stock, shares outstanding	70,366,661	68,302,681

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock Offering, Net of Underwriters Discounts, Commission and Offering Costs	Private Placement, Net of Underwriters Discounts, Commissions and Offering Costs	Restricted Stock Units	2018 Bonus Payout in Restricted Stock Units	2017 Bonus Payout	Common Stock	Common Stock Common Stock Offering, Net of Underwriters Discounts, Commission and Offering Costs	Common Stock Private Placement, Net of Underwriters Discounts, Commissions and Offering Costs	Common Stock Restricted Stock Units	Common Stock 2018 Bonus Payout in Restricted Stock Units	Common Stock 2017 Bonus Payout	Additional Paid-In Capital	Additional Paid-In Capital Common Stock Offering, Net of Underwriters Discounts, Commission and Offering Costs	Additional Paid-In Capital Private Placement, Net of Underwriters Discounts, Commissions and Offering Costs	Additional Paid-In Capital Restricted Stock Units	Additional Paid-In Capital 2018 Bonus Payout in Restricted Stock Units	Additional Paid-In Capital 2017 Bonus Payout	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total Coherus Stockholder Equity (Deficit)	Total Coherus Stockholder Equity (Deficit) Common Stock Offering, Net of Underwriters Discounts, Commission and Offering Costs	Total Coherus Stockholder Equity (Deficit) Private Placement, Net of Underwriters Discounts, Commissions and Offering Costs	Total Coherus Stockholder Equity (Deficit) Restricted Stock Units	Total Coherus Stockholder Equity (Deficit) 2018 Bonus Payout in Restricted Stock Units	Total Coherus Stockholder Equity (Deficit) 2017 Bonus Payout	Noncontrolling Interest
Beginning Balances at Dec. 31, 2016	$ 19,354						$ 5						$ 558,474						$ (630)	$ (537,322)	$ 20,527						$ (1,173)
Beginning Balances, Shares at Dec. 31, 2016							45,808,163
Issuance of common stock		$ 131,849	$ 81,191			$ 2,668			$ 1					$ 131,849	$ 81,190			$ 2,668				$ 131,849	$ 81,191			$ 2,668
Issuance of common stock, Shares								6,220,901	7,332,220	14,750		301,455
Issuance of common stock upon exercise of stock options	482												482								482
Issuance of common stock upon exercise of stock options, Shares							162,978
Stock-based compensation expense	33,397												33,397								33,397
Cumulative translation adjustment	(120)																		(120)		(120)
Distributions to non-controlling interest	(116)																										(116)
Net income (loss) attributable to Coherus	(238,170)																			(238,170)	(238,170)
Ending Balances at Dec. 31, 2017	30,535						$ 6						808,060						(750)	(775,492)	31,824						(1,289)
Ending Balances, shares at Dec. 31, 2017							59,840,467
Issuance of common stock		101,788						$ 1						101,787								101,788
Issuance of common stock, Shares								7,747,778		61,804
Issuance of common stock upon exercise of stock options	2,153												2,153								2,153
Issuance of common stock upon exercise of stock options, Shares							477,019
Issuance of common stock under the employee stock purchase plan ("ESPP")	1,591												1,591								1,591
Issuance of common stock under the employee stock purchase plan ("ESPP"), Shares							175,613
Stock-based compensation expense	34,984												34,984								34,984
Cumulative translation adjustment	468																		468		468
Distributions to non-controlling interest	(2,130)												(2,060)								(2,060)						(70)
Purchase of the remaining non-controlling interest	1,359																										$ 1,359
Net income (loss) attributable to Coherus	(209,339)																			(209,339)	(209,339)
Ending Balances at Dec. 31, 2018	$ (38,591)						$ 7						946,515						(282)	(984,831)	(38,591)
Ending Balances, shares at Dec. 31, 2018	68,302,681						68,302,681
Issuance of common stock		$ 8,228			$ 2,165									$ 8,228			$ 2,165					$ 8,228			$ 2,165
Issuance of common stock, Shares								761,130		39,765	175,054
Issuance of common stock upon exercise of stock options	$ 5,934												5,934								5,934
Issuance of common stock upon exercise of stock options, Shares	863,940						863,940
Issuance of common stock under the employee stock purchase plan ("ESPP")	$ 3,518												3,518								3,518
Issuance of common stock under the employee stock purchase plan ("ESPP"), Shares							289,977
Taxes paid related to net share settlement of bonuspayout in RSUs				$ (815)												$ (815)								$ (815)
Taxes paid related to net share settlement of bonus payout in RSUs, Shares										(65,886)
Stock-based compensation expense	35,218												35,218								35,218
Cumulative translation adjustment	(276)																		(276)		(276)
Net income (loss) attributable to Coherus	89,833																			89,833	89,833
Ending Balances at Dec. 31, 2019	$ 105,214						$ 7						$ 1,000,763						$ (558)	$ (894,998)	$ 105,214
Ending Balances, shares at Dec. 31, 2019	70,366,661						70,366,661

Net Income (Loss) Per Share Attributable to Coherus (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income (Loss) Per Share Attributable to the Company

The following table sets forth the computation of the basic and diluted net income (loss) per share attributable to the Company (in thousands, except share and per share data):

	Years Ended December 31,
	2019		2018			2017
Basic net income (loss) per share
Numerator:
Net income (loss) attributable to Coherus	$	89,833	$	(209,339	)	$	(238,170	)
Denominator:
Weighted-average common shares outstanding		69,679,916		65,034,827			53,133,620
Basic net income (loss) per share attributable to Coherus	$	1.29	$	(3.22	)	$	(4.48	)
Diluted net income (loss) per share
Numerator:
Net income (loss) attributable to Coherus	$	89,833	$	(209,339	)	$	(238,170	)
Numerator for diluted net income (loss) per share attributable to Coherus		89,833		(209,339	)		(238,170	)
Denominator:
Denominator for basic net income (loss) per share attributable to Coherus		69,679,916		65,034,827			53,133,620
Add effect of potential dilutive securities:
Stock options, including purchases from contributions to ESPP		3,491,272		—			—
Restricted stock units		14,755		—			—
Denominator for diluted net income (loss) per share attributable to Coherus		73,185,943		65,034,827			53,133,620
Diluted net income (loss) per share attributable to Coherus	$	1.23	$	(3.22	)	$	(4.48	)

Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net Income (Loss) Per Share Attributable to Coherus

The following outstanding dilutive potential shares were excluded from the calculation of diluted net income (loss) per share attributable to Coherus due to their anti-dilutive effect:

	Year Ended December 31,
	2019		2018		2017
Stock options, including purchases from contributions to ESPP		10,412,471		14,743,547		11,433,069
Restricted stock units		22,068		44,387		120,377
Shares issuable upon conversion of Convertible Notes		4,473,871		4,473,871		4,473,871
Total		14,908,410		19,261,805		16,027,317

Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

17.	Subsequent Events

On January 13, 2020, Coherus BioSciences, Inc. (the “Company”) entered into a license agreement (the “License Agreement”) with Innovent Biologics (Suzhou) Co., Ltd. (“Innovent”) for the development and commercialization of a biosimilar version of bevacizumab (Avastin®) in any dosage form and presentations (“bevacizumab Licensed Product”) in the United States and Canada (the “Territory”). Under the License Agreement, Innovent granted to the Company an exclusive, royalty-bearing license to develop and commercialize the bevacizumab Licensed Product in the field of treatment, prevention or amelioration of any human diseases and conditions as included in the label of Avastin®. Under the License Agreement, the Company also acquired an option to develop

and commercialize Innovent’s biosimilar version of rituximab (Rituxan®) in any dosage form and presentations (the “rituximab Licensed Product” and together with the bevacizumab Licensed Product, the “Licensed Products”) in the Territory. Subject to the terms of the License Agreement, the Company may exercise its option within 12 months of its receipt of certain regulatory materials from Innovent. Following the Company’s option exercise, Innovent’s biosimilar version of rituximab would be deemed a Licensed Product for all purposes of the License Agreement and Innovent would grant to the Company an exclusive, royalty-bearing license to develop and commercialize Innovent’s biosimilar version of rituximab in the field of treatment, prevention or amelioration of any human diseases and conditions as included in the label of Rituxan®.

Innovent will supply the Licensed Products to the Company in accordance with a manufacturing and supply agreement to be executed by the parties. Under the License Agreement, the Company acquired the right to require Innovent to perform technology transfer for the manufacturing of the Licensed Products in the Territory and, upon completion of such technology transfer, the Company will have the exclusive right to manufacture the Licensed Products in the Territory.

The Company will pay Innovent an upfront payment of $5.0 million. Additionally, the Company is obligated to pay Innovent an aggregate of up to $40.0 million in milestone payments in connection with the achievement of certain development, regulatory and sales milestones with respect to the bevacizumab Licensed Product and, if the Company’s option is exercised, an aggregate of up to $40.0 million in milestone payments in connection with the achievement of certain development, regulatory and sales milestones with respect to the rituximab Licensed Product. The Company will share a percentage of net sales of Licensed Products with Innovent in the mid-teens to low twenty percent range. If the Company exercises its option, it would be required to pay an option exercise fee of $5.0 million. Subject to the terms of the License Agreement, if the Company requests Innovent to perform technology transfer for the manufacturing of the Licensed Products, it would be required to pay up to $10.0 million for fees related thereto.

Debt Obligations (Tables)

12 Months Ended

Dec. 31, 2019

Debt Instrument [Line Items]

Components of Convertible Notes

The following table summarizes information about the components of the Convertible Notes as of December 31, 2019 and 2018 (in thousands):

	December 31,			December 31,
	2019			2018
Principal amount of the Convertible Notes	$	81,750		$	81,750
Unamortized debt discount and debt issuance costs		(3,208	)		(4,431	)
Convertible Notes	$	78,542		$	77,319
Principal amount of the Convertible Notes - related parties	$	27,250		$	27,250
Unamortized debt discount and debt issuance costs - related parties		(1,069	)		(1,477	)
Convertible Notes - related parties	$	26,181		$	25,773
Total Convertible Notes	$	104,723		$	103,092

Components of Interest Expense

The following table presents the components of interest expense of the Convertible Notes for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Year Ended December 31,
	2019		2018		2017
Stated coupon interest	$	6,150	$	6,150	$	6,150
Accretion of debt discount and debt issuance costs		1,223		1,113		1,014
Interest expense	$	7,373	$	7,263	$	7,164
Stated coupon interest - related parties	$	2,050	$	2,050	$	2,050
Accretion of debt discount and debt issuance costs - related parties		407		371		338
Interest expense - related parties	$	2,457	$	2,421	$	2,388
Total interest expense	$	9,830	$	9,684	$	9,552

Schedule of Future Payments on Debt

Future payments on the Convertible Notes as of December 31, 2019 are as follows (in thousands):

Year ending December 31,
2020	$	8,200
2021		8,200
2022		111,050
Total minimum payments		127,450
Less amount representing interest		(18,450	)
Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on Convertible Notes		(4,277	)
Net carrying amount of Convertible Notes	$	104,723

Term Loan

Debt Instrument [Line Items]

Components of Interest Expense

The following table presents the components of interest expense:

	Year Ended
	Decemeber 31, 2019
Stated coupon interest	$	7,063
Accretion of debt discount and debt issuance costs		709
Interest expense	$	7,772

Schedule of Future Payments on Debt

Future payments on the Term Loan as of December 31, 2019 are as follows (in thousands):

Year ending December 31,
2020	$	7,244
2021		7,224
2022		7,224
2023		39,346
2024 and beyond		47,494
Total minimum payments		108,532
Less amount representing interest		(30,532	)
Term Loan, gross		78,000
Less debt discount and debt issuance costs on Term Loan		(4,337	)
Net carrying amount of Term Loan	$	73,663

Components of Term Loan

The following table summarizes information about the components of the Term Loan (in thousands):

	December 31,
	2019
Principal amount of the Term Loan	$	75,000
Unamortized debt discount and debt issuance costs		(1,337	)
Term Loan	$	73,663

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9.	Commitments and Contingencies

Purchase Commitments

The Company entered into agreements for the manufacturing of commercial supply of UDENYCA^® with a CMO. Under the terms of the agreements, the Company is contractually obligated to make certain payments to the CMO.

As of December 31, 2019, the Company’s non-cancellable purchase commitment was as follows (in thousands):

Year ending December 31,
2020	$	25,011
2021		30,991
2022		8,403
Total obligations	$	64,405

The Company enters into contracts in the normal course of business with contract research organizations for preclinical studies and clinical trials and CMO for the manufacture of drug materials. The contracts are cancellable, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would only be obligated for products or services that the Company had received as of the effective date of the termination and any applicable cancellation fees.

Contingencies

On March 3, 2017, Amgen filed an action against the Company, KBI BioPharma Inc., the Company’s employee Howard S. Weiser and Does 1-20 in the Superior Court of the State of California, County of Ventura. The complaint alleges that the Company engaged in unfair competition and improperly solicited and hired certain former Amgen employees in order to acquire and access trade secrets and other confidential information belonging to Amgen. On June 1, 2017, Amgen filed a Second Amended Complaint, which alleges as to Coherus (i) unfair competition under California Business and Professions Code Section 17200 et seq., (ii) misappropriation of trade secrets, (iii) aiding and abetting breach of duty of loyalty and (iv) tortious interference with contract. As to defendant Weiser, the Second Amended Complaint alleges (i) unfair competition under California Business and Professions Code Section 17200 et seq., (ii) misappropriation of trade secrets, (iii) breach of contract, (iv) violation of Penal Code Section 502 and (v) breach of duty of loyalty. KBI BioPharma Inc. is not named as a defendant in the Second Amended Complaint. The Second Amended Complaint seeks injunctive relief and monetary damages. On May 2, 2019, the Company and Amgen settled the trade secret action brought by Amgen. The details of the settlement are confidential but the Company will continue to market UDENYCA^®and began paying a mid-single digit royalty to Amgen for five years starting on July 1, 2019 (see Note 2 – Cost of Goods Sold).

Guarantees and Indemnifications

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. The Company would assess the likelihood of any adverse judgments or related claims, as well as ranges of probable losses. In the cases where the Company believes that a reasonably possible or probable loss exists, it will disclose the facts and circumstances of the claims, including an estimate range, if possible.

Supplementary Data - Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

18.	Supplementary Data – Quarterly Financial Data (Unaudited)

The following table presents certain unaudited consolidated quarterly financial information for each of the quarters ended December 31, 2019 and 2018:

	2019 Quarter End
(in thousands, except per share data)	March 31			June 30			September 30			December 31
Total revenue	$	37,098		$	83,433		$	111,684		$	123,856
Gross profit		34,873			82,832			105,237			116,051
Total operating expenses		53,697			55,940			59,843			78,823
Net income (loss)		(20,004	)		23,567			47,043			39,227
Net income (loss) per share attributable to Coherus:
Basic		(0.29	)		0.34			0.67			0.56
Diluted		(0.29	)		0.32			0.63			0.53
	2018 Quarter End
	March 31			June 30			September 30			December 31
Total revenue	$	—		$	—		$	—		$	—
Total operating expenses		42,032			44,910			56,972			60,502
Net loss		(44,302	)		(43,685	)		(58,826	)		(62,596	)
Net loss attributable to Coherus		(44,297	)		(43,638	)		(58,808	)		(62,596	)
Net loss per share attributable to Coherus, basic and diluted		(0.74	)		(0.68	)		(0.87	)		(0.92	)

Debt Obligations

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt Obligations

8.	Debt Obligations

Convertible Notes

On February 29, 2016, the Company issued and sold $100.0 million aggregate principal amount of its 8.2% Convertible Senior Notes (the “Convertible Notes”) and received total net proceeds of approximately $99.2 million, after deducting issuance costs of $0.8 million. The Convertible Notes constitute general, senior unsubordinated obligations of the Company and are guaranteed by certain subsidiaries of the Company. The Convertible Notes bear interest at a fixed coupon rate of 8.2% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, which commenced on March 31, 2016, and mature on March 31, 2022, unless earlier converted, redeemed or repurchased. If the Company fails to satisfy certain registration or reporting requirements, then additional interest will accrue on the Convertible Notes at a rate of up to 0.50% per annum in the aggregate. The Convertible Notes also bear a premium of 9% of their principal amount, which is payable when the Convertible Notes mature or are repurchased or redeemed by the Company.

The Convertible Notes were issued to Healthcare Royalty Partners III, L.P., for $75.0 million in aggregate principal amount, and to three related party investors, KKR Biosimilar L.P., MX II Associates LLC, and KMG Capital Partners, LLC, for $20.0 million, $4.0 million, and $1.0 million, respectively, in aggregate principal amount.

The Convertible Notes are convertible at the option of the holder at any time prior to the close of business on the business day immediately preceding March 31, 2022 at the initial conversion rate of 44.7387 shares of common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $22.35 per share, and is subject to adjustment in certain events. Upon conversion of the Convertible Notes by a holder, the holder will receive shares of the Company’s common stock together, if applicable, with cash in lieu of any fractional share.

The Convertible Notes are redeemable in whole, and not in part, at the Company’s option on or after March 31, 2020, if the last reported sale price per share of common stock exceeds 160% of the conversion price on 20 or more trading days during the 30 consecutive trading days preceding the date on which the Company sends notice of such redemption to the holders of the Convertible Notes. At maturity or redemption, if not earlier converted, the Company will pay 109% of the principal amount of the Convertible Notes maturing or being redeemed, together with accrued and unpaid interest, in cash.

The Convertible Notes contain customary events of default (as defined in the Convertible Note purchase agreement), the occurrence of which could result in the acceleration of all amounts due under the Convertible Notes. These events of default include, among others, certain failures to pay amounts due on the Convertible Notes, to deliver the consideration due upon conversion or to settle uninsured judgments, decrees or orders exceeding $10.0 million, and certain defaults on other indebtedness for money borrowed of at least $10.0 million, insolvency-related events and breaches of representations, subject, in some cases, to a cure period. The Convertible Notes also contain covenants restricting the Company’s ability to incur additional indebtedness for borrowed money or convertible preferred stock and to pay dividends or make distributions on the Company’s equity interests, subject to certain exceptions. As of December 31, 2019, the Company was in full compliance with these covenants and there were no events of default under the Convertible Notes.

The Convertible Notes are accounted for in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options. Pursuant to ASC Subtopic 470-20, the Company evaluated the features embedded in the Convertible Notes and concluded that the embedded features are not required to be bifurcated and accounted for separately from the host debt instrument.

The Company granted the holders of the Convertible Notes certain registration rights requiring the Company to register, under the Securities Act of 1933, as amended, the resale of the shares of common stock issuable upon conversion or settlement of the Convertible Notes.

The following table summarizes information about the components of the Convertible Notes as of December 31, 2019 and 2018 (in thousands):

	December 31,			December 31,
	2019			2018
Principal amount of the Convertible Notes	$	81,750		$	81,750
Unamortized debt discount and debt issuance costs		(3,208	)		(4,431	)
Convertible Notes	$	78,542		$	77,319
Principal amount of the Convertible Notes - related parties	$	27,250		$	27,250
Unamortized debt discount and debt issuance costs - related parties		(1,069	)		(1,477	)
Convertible Notes - related parties	$	26,181		$	25,773
Total Convertible Notes	$	104,723		$	103,092

If the Convertible Notes were converted on December 31, 2019, the holders of the Convertible Notes would receive common shares with an aggregate value of $80.5 million based on the Company’s closing stock price of $18.00.

The following table presents the components of interest expense of the Convertible Notes for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Year Ended December 31,
	2019		2018		2017
Stated coupon interest	$	6,150	$	6,150	$	6,150
Accretion of debt discount and debt issuance costs		1,223		1,113		1,014
Interest expense	$	7,373	$	7,263	$	7,164
Stated coupon interest - related parties	$	2,050	$	2,050	$	2,050
Accretion of debt discount and debt issuance costs - related parties		407		371		338
Interest expense - related parties	$	2,457	$	2,421	$	2,388
Total interest expense	$	9,830	$	9,684	$	9,552

The remaining unamortized debt discount and debt offering costs related to the Company’s Convertible Notes of approximately $4.3 million as of December 31, 2019, will be amortized using the effective interest rate over the remaining term of the Convertible Notes of 2.25 years. The annual effective interest rate is 9.48% for the Convertible Notes.

Future payments on the Convertible Notes as of December 31, 2019 are as follows (in thousands):

Year ending December 31,
2020	$	8,200
2021		8,200
2022		111,050
Total minimum payments		127,450
Less amount representing interest		(18,450	)
Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on Convertible Notes		(4,277	)
Net carrying amount of Convertible Notes	$	104,723

Term Loan

On January 7, 2019 (the “Credit Agreement Closing Date”), the Company entered into a credit agreement (the “Credit Agreement”) with affiliates of Healthcare Royalty Partners (together, the “Lenders”). The Credit Agreement consists of a six-year term loan facility for an aggregate principal amount of $75.0 million (the “Borrowings”). The obligations of the Company under the loan documents are guaranteed by the Company’s material domestic U.S. subsidiaries.

The Borrowings under the Credit Agreement bear interest through maturity at 7.00% per annum plus three month LIBOR (“LIBOR”). The consolidated net sales for UDENYCA^® for the fiscal year ending December 31, 2019, exceeded $250.0 million, which will result in an interest rate reduction to 6.75% per annum plus LIBOR effective January 1, 2020. Interest is payable quarterly in arrears and varies with LIBOR. The Company adopted the prospective method to account for future cash payments. Under the prospective method, the effective interest rate is not constant, and any change in the expected cash flows is recognized prospectively as an adjustment to the effective yield. As of December 31, 2019, the effective interest rate is 10.7%.

The Company is required to pay principal on the Borrowings in equal quarterly installments beginning on the four year anniversary of the Credit Agreement Closing Date (or, if consolidated net sales of UDENYCA^® in the fiscal year ending December 31, 2021 are less than $375.0 million, beginning on the three year anniversary of the Credit Agreement Closing Date), with the outstanding balance to be repaid on January 7, 2025 the maturity date.

The Company is also required to make mandatory prepayments of the Borrowings under the Credit Agreement, subject to specified exceptions, with the proceeds of asset sales, extraordinary receipts, debt issuances and specified other events including the occurrence of a change in control.

If all or any of the Borrowings are prepaid or required to be prepaid under the Credit Agreement, then the Company shall pay, in addition to such prepayment, a prepayment premium (the “Prepayment Premium”) equal to (i) with respect to any prepayment paid or required to be paid on or prior to the three year anniversary of the Credit Agreement Closing Date, 5.00% of the Borrowings

prepaid or required to be prepaid, plus all required interest payments that would have been due on the Borrowings prepaid or required to be prepaid through and including the three year anniversary of the Credit Agreement Closing Date, (ii) with respect to any prepayment paid or required to be paid after the three year anniversary of the Credit Agreement Closing Date but on or prior to the four year anniversary of the Credit Agreement Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid, (iii) with respect to any prepayment paid or required to be paid after the four year anniversary of the Credit Agreement Closing Date but on or prior to the five year anniversary of the Credit Agreement Closing Date, 2.50% of the Borrowings prepaid or required to be prepaid, and (iv) with respect to any prepayment paid or required to be prepaid thereafter, 1.25% of the Borrowings prepaid or required to be prepaid.

In connection with the Credit Agreement, the Company paid a fee to the Lenders of $1.1 million at closing in the form of an original issue discount. Upon the prepayment or repayment of the Borrowings (or upon the date such prepayment or repayment is required to be paid), the Company is required to pay an additional exit fee in an amount equal to 4.00% of the total principal amount of the Borrowings.

The obligations under the Credit Agreement are secured by a lien on substantially all of the Company’s and the Guarantors’ tangible and intangible property, including intellectual property. The Credit Agreement contains certain affirmative covenants, negative covenants and events of default, including, covenants and restrictions that among other things, restrict the ability of the Company and its subsidiaries to, incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, in asset sales, and declare dividends or redeem or repurchase capital stock. Additionally, the consolidated net sales for UDENYCA^® must not be lower than $70.0 million for the fiscal year ending December 31, 2019, (b) $125.0 million for the fiscal year ending December 31, 2020, and (c) $150.0 million for each fiscal year thereafter. A failure to comply with these covenants could permit the Lenders under the Credit Agreement to declare the Borrowings, together with accrued interest and fees, to be immediately due and payable.

The following table summarizes information about the components of the Term Loan (in thousands):

	December 31,
	2019
Principal amount of the Term Loan	$	75,000
Unamortized debt discount and debt issuance costs		(1,337	)
Term Loan	$	73,663

The following table presents the components of interest expense:

	Year Ended
	Decemeber 31, 2019
Stated coupon interest	$	7,063
Accretion of debt discount and debt issuance costs		709
Interest expense	$	7,772

The remaining unamortized debt discount and debt offering costs related to the Term Loan of approximately $4.3 million as of December 31, 2019, will be amortized using the effective rate over the remaining term of the Term Loan of 5.0 years.

Future payments on the Term Loan as of December 31, 2019 are as follows (in thousands):

Year ending December 31,
2020	$	7,244
2021		7,224
2022		7,224
2023		39,346
2024 and beyond		47,494
Total minimum payments		108,532
Less amount representing interest		(30,532	)
Term Loan, gross		78,000
Less debt discount and debt issuance costs on Term Loan		(4,337	)
Net carrying amount of Term Loan	$	73,663

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

14.	Income Taxes

The components of income (loss) before income taxes are as follows (in thousands):

	Year Ended December 31,
	2019		2018			2017
Domestic	$	92,584	$	(208,843	)	$	(222,674	)
Foreign		190		(496	)		(15,496	)
Total	$	92,774	$	(209,339	)	$	(238,170	)

Provision for (benefit from) income taxes (in thousands):

	Year Ended December 31,
	2019		2018		2017
Current
Federal	$	—	$	—	$	—
State		2,942		—		—
Foreign		—		—		—
Subtotal	$	2,942	$	—	$	—

Deferred
Federal	$	—	$	—	$	—
State		—		—		—
Foreign		—		—		—
Subtotal	$	—	$	—	$	—

Provision for income taxes	$	2,942	$	—	$	—

Income tax provision for the year ended December 31, 2019 of $2.9 million primarily relates to state taxes in jurisidictions outside of California, for which we have a limited operating history. There was no income tax provision for the years ended December 31, 2018 and 2017 due to the Company’s history of losses and valuation of allowances against the deferred tax assets.

A reconciliation of the statutory U.S. federal rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2019			2018			2017
Percent of pre-tax income:
U.S. federal statutory income tax rate		21.00	%		21.00	%		34.00	%
State taxes, net of federal benefit		1.51			0.16			0.80
Foreign rate differences		(0.04	)		(0.05	)		(2.21	)
Permanent items		(0.64	)		0.15			(0.19	)
Research and development credit		(4.77	)		2.61			2.10
Effect in NOLs due to adoption of ASU 2016-09		—			—			4.55
U.S. Tax Reform tax rate change		—			—			(36.90	)
Other		0.55			2.23			(0.21	)
Change in valuation allowance		(14.44	)		(26.10	)		(1.94	)
Effective income tax rate		3.17	%		—	%		—	%

Significant components of the Company’s net deferred tax assets as of December 31, 2019 and 2018 consist of the following (in thousands):

	December 31,
	2019			2018
Net operating loss carryforwards	$	138,663		$	168,753
Research and development credits		43,879			39,891
Depreciation and amortization		7,230			7,901
Stock-based compensation		22,807			17,123
Sales related accruals		7,137			—
Other accruals		6,927			3,942
Gross deferred tax assets		226,643			237,610
Right-of-use asset		(2,396	)		—
In-process research and development		(589	)		(552	)
Gross deferred tax liabilities		(2,985	)		(552	)
Total net deferred tax asset		223,658			237,058
Less valuation allowance		(223,658	)		(237,058	)
Net deferred tax assets	$	—		$	—

ASC Topic 740 (“ASC 740”) requires that the tax benefit of net operating losses, temporary differences and credit carry forwards be recorded as an asset to the extent that management assesses that realization is "more likely than not." Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carry forward period. Because of our recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely (as defined in ASC 740) to be realized and, accordingly, has provided a valuation allowance. The valuation allowance decreased by $13.4 million during the year ended December 31, 2019 and increased by $54.6 million and $4.6 million during the years ended December 31, 2018 and 2017, respectively.

As of December 31, 2019, the Company had federal net operating loss carryforwards of approximately $642.2 million, which will start to expire beginning in 2035, and various state net operating loss carryforwards of approximately $46.3 million, which have various expiration dates beginning in 2031.

As of December 31, 2019, the Company had federal research and development credit carryforwards for federal income tax purposes of approximately $42.9 million, which will start to expire in 2031, and state research and development credit carryforwards of approximately $15.1 million, which can be carried forward indefinitely.

In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences representing net future deductible amounts become deductible. Due to the weight of the negative evidence, which is primarily its history of losses outweighing other positive evidence, the Company has determined that it is more likely than not that its federal net deferred tax assets and certain state net deferred tax assets will not be realized, and therefore, the federal and certain state net deferred tax assets are fully offset by a valuation allowance at December 31, 2019 and 2018. The deferred tax assets were primarily comprised of net operating losses, tax credit carryforwards and stock-based compensation. Utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. Under the new enacted tax law, the carry forward period of net operating losses generated from 2018 forward is indefinite. However, the carryforward period for net operating losses generated prior to 2018 remains the same. Therefore, the annual limitation may result in the expiration of certain net operating losses and tax credit carryforwards before their utilization.

The Company files U.S, California and other state income tax returns with varying statutes of limitations. The tax years from 2011 forward remain open to examination due to the carryover of unused net operating losses and tax credits.

A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands):

	Year Ended December 31,
	2019			2018		2017
Balance at beginning of year	$	18,115		$	15,682	$	18,682
Additions based on tax positions related to current year		1,206			1,276		3,387
Additions (reductions) for tax positions of prior years		(7,718	)		1,157		(6,387	)
Balance at end of year	$	11,603		$	18,115	$	15,682

As of December 31, 2019, 2018 and 2017, the Company had approximately $11.6 million, $18.1 million, and $15.7 million, respectively, of unrecognized benefits, none of which would currently affect the Company’s effective tax rate if recognized due to the Company’s deferred tax assets being fully offset by a valuation allowance. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months. During the years ended December 31, 2019, 2018 and 2017, the Company did not recognize accrued interest and penalties related to unrecognized tax benefits. The Company does not anticipate a material adjustment of unrecognized tax benefits during the next 12 months that impacts the rate for tax positions of prior years.

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue:
Total revenue	$ 356,071,000	$ 0	$ 1,556,000
Operating expenses:
Cost of goods sold	17,078,000	0	0
Research and development (includes related party of $52, $1,609 and $8,199 for the years ended December 31, 2019, 2018 and 2017, respectively)	94,188,000	110,239,000	162,389,000
Selling, general and administrative (includes related party of $1, $181 and $62 for the years ended December 31, 2019, 2018 and 2017, respectively)	137,037,000	94,177,000	71,303,000
Total operating expenses	248,303,000	204,416,000	233,692,000
Income (loss) from operations	107,768,000	(204,416,000)	(232,136,000)
Interest expense (includes related party of $2,457, $2,421 and $2,388 for the years ended December 31, 2019, 2018 and 2017, respectively)	(17,601,000)	(9,684,000)	(9,552,000)
Other income, net	2,608,000	4,691,000	3,402,000
Net income (loss) before income taxes	92,775,000	(209,409,000)	(238,286,000)
Income tax provision	2,942,000	0	0
Net income (loss)	89,833,000	(209,409,000)	(238,286,000)
Net loss attributable to non-controlling interest	0	70,000	116,000
Net income (loss) attributable to Coherus	$ 89,833,000	$ (209,339,000)	$ (238,170,000)
Net income (loss) per share attributable to Coherus:
Basic	$ 1.29	$ (3.22)	$ (4.48)
Diluted	$ 1.23	$ (3.22)	$ (4.48)
Weighted-average number of shares used in computing net income (loss) per share attributable to Coherus:
Basic	69,679,916	65,034,827	53,133,620
Diluted	73,185,943	65,034,827	53,133,620
Net Product Revenue
Revenue:
Total revenue	$ 356,071,000	$ 0	$ 0
Collaboration and License Revenue
Revenue:
Total revenue	$ 0	$ 0	$ 1,556,000

Collaboration and License Agreements - Additional Information (Details) $ in Thousands, € in Millions	1 Months Ended		3 Months Ended									12 Months Ended
	Jun. 30, 2015	Jan. 31, 2012 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaboration and license revenue			$ 123,856	$ 111,684	$ 83,433	$ 37,098	$ 0	$ 0	$ 0	$ 0
Bioeq IP AG \| Licensed Products
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Percentage of gross profits on sales												50.00%	50.00%
Bioeq IP AG \| Maximum \| Licensed Products
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments \| €													€ 25
Bioeq IP AG \| Research and Development Expense
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront and milestone payment												$ 11,100	€ 10
Daiichi Sankyo License Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaboration and license revenue											$ 1,400			$ 1,600
Deferred revenue		$ 10,000
Initial term of agreement		10 years
Estimated period of performance upfront fee												3 years	3 years
Minimum percentage of clinical trial cost	20.00%
Reimbursement of past cost incurred and to be incurred															$ 4,500
Research and development														$ 4,200

Stock Option Plans and Stock-Based Compensation - Summary of Option Activities under 2016 and 2014 Plans (Details)	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Options, Beginning balance \| shares	14,674,553
Number of Options, Granted - at fair value \| shares	5,328,500
Number of Options, Exercised \| shares	(863,940)
Number of Options, Forfeited /Cancelled \| shares	(1,327,442)
Number of Options, Ending balance \| shares	17,811,671
Weighted-Average Exercise Price, Beginning balance \| $ / shares	$ 14.202
Weighted-Average Exercise Price, Granted - at fair value \| $ / shares	15.137
Weighted-Average Exercise Price, Exercised \| $ / shares	6.869
Weighted-Average Exercise Price, Forfeited /Cancelled \| $ / shares	17.630
Weighted-Average Exercise Price, Ending balance \| $ / shares	$ 14.582

Leases - Schedule of Balance Sheet Classification of Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating lease liabilities
Other current liabilities	$ 2,196
Lease liabilities, non-current	10,256	$ 9,200	$ 0
Total operating lease liabilities	$ 12,452

Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Stockholders' Equity

11.	Stockholders’ Equity

Common Stock Offerings

In January 2016, the Company’s shelf registration statement on Form S-3 (File No. 333-208625) (the “Shelf Registration Statement”) was declared effective by the SEC. As of January 18, 2019, the Company’s Shelf Registration Statement expired.

On October 28, 2016, the Company entered into a sales agreement (the “Sales Agreement”) with Cowen to sell shares of the Company’s common stock, with aggregate gross sales proceeds of up to $100,000,000, from time to time, through an at-the-market equity offering program under which Cowen acted as its sales agent (the “ATM Offering Program”). Cowen was entitled to compensation for its services equal to 3.0% of the gross proceeds of any shares of common stock sold through Cowen under the Sales Agreement. The Company had no obligation to sell any shares under the Sales Agreement, and could at any time suspend solicitation and offers under the Sales Agreement. The shares were issued pursuant to the Company’s Shelf Registration Statement. The Company filed a prospectus supplement, dated October 28, 2016, with the SEC in connection with the offer and sale of the shares pursuant to the Sales Agreement. In 2018, the Company issued and sold 1,799,504 shares of common stock at a weighted

average price of $12.14 per share through its ATM Offering Program and received total gross proceeds of $21.8 million. After deducting commission of $0.7 million and offering expense of $0.1 million, the net proceeds were $21.0 million. In January 2019, the Company issued and sold 761,130 shares of common stock at a weighted average price of $11.17 per share through its ATM Program and received total gross proceeds of $8.5 million. After deducting commission of $0.3 million, the net proceeds were $8.2 million. As of January 18, 2019, the Company’s Shelf Registration Statement expired and accordingly the ATM Offering Program was terminated.

In May 2018, the Company completed an underwritten public offering of 5,948,274 shares of its common stock at a price to the public of $14.50 per shares, which includes the closing of the full exercise of the underwriters’ option to purchase an additional 775,861 shares of common stock. The Company received total gross proceeds from the offering of $86.3 million. After deducting underwriting discounts and commissions of $5.2 million and offering expenses of $0.3 million, the net proceeds were $80.8 million.

Debt Obligations - Components of Convertible Notes (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Feb. 29, 2016
Debt Instrument [Line Items]
Convertible Notes	$ 78,542	$ 77,319
Convertible Notes - related parties	26,181	25,773
8.2% Senior Convertible Notes Due March 2022
Debt Instrument [Line Items]
Principal amount of the Convertible Notes			$ 100,000
Unamortized debt discount and debt issuance costs	(4,277)
Total Convertible Notes	104,723	103,092
8.2% Senior Convertible Notes Due March 2022 \| Related Party Debt
Debt Instrument [Line Items]
Principal amount of the Convertible Notes	27,250	27,250
Unamortized debt discount and debt issuance costs	(1,069)	(1,477)
Convertible Notes - related parties	26,181	25,773
8.2% Senior Convertible Notes Due March 2022 \| Parent Company
Debt Instrument [Line Items]
Principal amount of the Convertible Notes	81,750	81,750
Unamortized debt discount and debt issuance costs	(3,208)	(4,431)
Convertible Notes	$ 78,542	$ 77,319

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Summary of Revenue by Geographical Region

The following table summarizes revenue by geographic region (in thousands):

	Year Ended December 31,
	2019		2018		2017
United States	$	356,071	$	—	$	—
Rest of the world		—		—		1,556
Total revenue	$	356,071	$	—	$	1,556

Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash within the consolidated balance sheets and which, in aggregate, represent the amount reported in the consolidated statements of cash flows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Cash and cash equivalents	$	177,668	$	72,356	$	126,911
Restricted cash		—		50		60
Restricted cash - non-current		240		785		785
Total cash, cash equivalents and restricted cash	$	177,908	$	73,191	$	127,756

Schedule of Estimated Useful Lives of Property Plant and Equipment

Property and equipment is stated at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred, and costs of improvements are capitalized. Depreciation and amortization is recognized using the straight-line method over the following estimated useful lives:

Computer equipment and software		3 years
Furniture and fixtures		5 years
Machinery and equipment		5 years
Leasehold improvements		Shorter of lease term or useful life

Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Summary of Impact of Adoption of Topic 842 on Financial Statement

The impact of the adoption of Topic 842 on the accompanying consolidated balance sheet as of January 1, 2019 was as follows (in thousands):

	December 31, 2018		Adjustments Due to the Adoption of Topic 842		January 1, 2019
Operating lease right-of-use asset	$	—	$	7,172	$	7,172
Operating lease liabilities:
Other current liabilities⁽¹⁾	$	419	$	1,665	$	2,084
Other lease liabilities, non-current⁽²⁾	$	1,645	$	5,466	$	7,111

______________________________________________________

(1) Includes current portion of deferred rent and current portion of operating lease liabilities.

(2) Non-current portion of deferred rent and operating lease liabilities.

Organization and Operations

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Operations

1.	Organization and Operations

Description of the Business

Coherus BioSciences, Inc. (the “Company” or “Coherus”) is a commercial-stage biotherapeutics company, focused on the global biosimilar market. Biosimilars are a class of protein-based therapeutics with high similarity to approved originator products on the basis of various structural, physicochemical and biological properties, as well as in terms of safety and efficacy. The Company’s headquarters and laboratories are located in Redwood City, California and in Camarillo, California, respectively.

On September 25, 2018, the Company received regulatory approval for the marketing of UDENYCA^® (pegfilgrastim-cbqv), a biosimilar to Neulasta, a long-acting granulocyte-colony stimulating factor, from the European Commission, and received regulatory approval for UDENYCA^® from the U.S. Food and Drug Administration (“FDA”) on November 2, 2018. The Company initiated U.S. sales of UDENYCA^® on January 3, 2019.

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

3.	Fair Value Measurements

Financial assets and liabilities are recorded at fair value. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, investments in marketable securities, accounts receivable, accounts payable and other current liabilities approximate their fair value due to their short maturities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The accounting guidance describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last is considered unobservable. These levels of inputs are the following:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s financial instruments consist of Level 1 assets and Level 3 liabilities. Where quoted prices are available in an active market, securities are classified as Level 1. Level 1 assets consist of highly liquid money market funds that are included in cash and cash equivalents, and restricted cash. There were no unrealized gains and losses in the Company’s investments in these money market funds.

In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3. Level 3 liabilities consist of the contingent consideration.

Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements are as follows (in thousands):

	Fair Value Measurements
	December 31, 2019
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	155,523	$	155,523	$	—	$	—
Restricted cash (money market funds)		240		240		—		—
Total financial assets	$	155,763	$	155,763	$	—	$	—
Liabilities:
Contingent consideration	$	102	$	—	$	—	$	102

	Fair Value Measurements
	December 31, 2018
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	71,062	$	71,062	$	—	$	—
Restricted cash (money market funds)		835		835		—		—
Total financial assets	$	71,897	$	71,897	$	—	$	—
Liabilities:
Contingent consideration	$	60	$	—	$	—	$	60

There were no transfers between Level 1, Level 2 and Level 3 during the periods presented.

Contingent Consideration

As part of the InteKrin acquisition in February 2014, the Company recognized contingent consideration associated with potential payments to be made to the former InteKrin stockholders upon (i) the first dosing of a human subject in the first Phase 2 Clinical Trial for CHS-131 ("Earn-Out Payment"), which was achieved and settled by the Company in March 2015, and (ii) per a compound transaction agreement as defined in the purchase agreement (the “Compound Transaction Payment”). The size of the Compound Transaction Payment consideration is tiered based on the size of a license or similar agreement with a third party and the timing of such agreement.

The fair value measurement of the Compound Transaction Payment uses a probability-weighted discounted cash flow approach based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The Compound Transaction analysis as of December 31, 2019 applied a 20% risk-adjusted discount rate to measure present value and also captured an additional 8.0% credit spread for counterparty credit risk given the cash payment. The expected cash flow is based on estimates provided by the Company’s management including the timing and probability of occurrence. The value of the consideration is tiered based on the value of a license or similar agreement with a third party and the timing of such agreement. Generally, increases or decreases in the probability of occurrence would result in a directionally similar impact in the fair value measurement of the Compound Transaction Payment and it is estimated that a 1% increase (decrease) in the probability of occurrence would result in an immaterial fair value fluctuation.

For the years ended December 31, 2019, 2018 and 2017, the Company recognized a loss of $42,000 , a gain of $3.2 million and a gain of $2.3 million in other income, net in the consolidated statement of operations, respectively, as a result of the change in the fair value of the Compound Transaction Payment.

The following table sets forth a summary of changes in the estimated fair value of the contingent consideration (in thousands):

Balance as of December 31, 2017	$	3,290
Change in fair value of the contingent consideration liability		(3,230	)
Balance as of December 31, 2018	$	60
Change in fair value of the contingent consideration liability		42
Balance as of December 31, 2019	$	102

The decrease of $3.2 million in the fair value of the Compound Transaction Payment during the year ended December 31, 2018 was primarily a result of a decrease in the probability of occurrence from 33% to 10% and an extension in the timing of occurrence to a later date.

Convertible Notes

The estimated fair value of the 8.2% Convertible Senior Notes Due 2022, which the Company issued on February 29, 2016 (see Note 8) is based on an income approach. The estimated fair value was approximately $117.1 million (par value $100.0 million) as of December 31, 2019 and represents a Level 3 valuation. When determining the estimated fair value of the Company’s long-term debt, the Company uses a single factor binomial lattice model which incorporates the terms and conditions of the convertible notes and market based risk measurement that are indirectly observable, such as credit risk. The lattice model produces an estimated fair value based on changes in the price of the underlying common shares price over successive periods of time. An estimated yield based on market data is used to discount straight debt cash flows.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt Obligations - Additional Information (Details)		12 Months Ended
Debt Obligations - Additional Information (Details)	Feb. 29, 2016 USD ($) d $ / shares shares	Dec. 31, 2019 USD ($) $ / shares
KKR Member
Debt Instrument [Line Items]
Aggregate principal amount	$ 20,000,000.0
MX II Member
Debt Instrument [Line Items]
Aggregate principal amount	4,000,000.0
KMGCP Member
Debt Instrument [Line Items]
Aggregate principal amount	1,000,000.0
HRP III Member
Debt Instrument [Line Items]
Aggregate principal amount	75,000,000.0
8.2% Senior Convertible Notes Due March 2022
Debt Instrument [Line Items]
Aggregate principal amount	$ 100,000,000.0
Convertible notes, interest rate	8.20%
Proceeds from issuance of convertible notes	$ 99,200,000
Convertible notes, Issuance Cost	$ 800,000
Convertible notes, interest rate description		The Convertible Notes bear interest at a fixed coupon rate of 8.2% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, which commenced on March 31, 2016
Debt instrument maturity date	Mar. 31, 2022
Convertible notes, premium percentage	9.00%
Common shares at conversion \| shares	44.7387
Conversion price per common share \| $ / shares	$ 22.35
Principal amount of notes converted into shares	$ 1,000
Percentage of applicable conversion price	160.00%
Convertible trading days \| d	20
Convertible consecutive trading days \| d	30
Percentage to pay in cash of the par value of notes	109.00%
Minimum order amount to be settled		$ 10,000,000.0
Minimum borrowings for indebtedness defaulters		$ 10,000,000.0
Convertible notes, covenant compliance		As of December 31, 2019, the Company was in full compliance with these covenants and there were no events of default under the Convertible Notes.
Convertible notes, converted amount		$ 80,500,000
Closing stock, price per share \| $ / shares		$ 18.00
Unamortized debt discount and debt issuance costs on Convertible Notes		$ 4,277,000
Amortized effective interest rate convertible notes period		2 years 3 months
Effective interest rate		9.48%
8.2% Senior Convertible Notes Due March 2022 \| Maximum
Debt Instrument [Line Items]
Additional interest to be accrued upon failure of registration or reporting requirements	0.50%

Fair Value Measurements - Additional Information (Details)		12 Months Ended
	Feb. 29, 2016 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Fair Value Disclosures [Line Items]
Transfers from Level 1 to Level 3		$ 0	$ 0
Transfers from Level 3 to Level 1		0	0
Remeasurement of fair-value contingent consideration		42,000	(3,230,000)	$ (2,260,000)
8.2% Senior Convertible Notes Due 2022
Fair Value Disclosures [Line Items]
Aggregate principal amount	$ 100,000,000.0
Convertible notes, interest rate	8.20%
Debt instrument maturity date	Mar. 31, 2022
Other Income, Net
Fair Value Disclosures [Line Items]
Remeasurement of fair-value contingent consideration		(42,000)	3,200,000	$ 2,300,000
Contingent Consideration
Fair Value Disclosures [Line Items]
Decrease in fair value of the compound transaction payment		42,000	$ (3,230,000)
Level 3 \| 8.2% Senior Convertible Notes Due 2022
Fair Value Disclosures [Line Items]
Debt instrument fair value		$ 117,100,000
Fair Value Measurements Recurring Basis \| Level 3 \| Measurement Input, Discount Rate
Fair Value Disclosures [Line Items]
Fair value investment measurement input		0.20
Fair Value Measurements Recurring Basis \| Level 3 \| Measurement Input, Counterparty Credit Risk
Fair Value Disclosures [Line Items]
Fair value investment measurement input		0.080
Fair Value Measurements Recurring Basis \| Level 3 \| Contingent Consideration
Fair Value Disclosures [Line Items]
Increase (decrease) in expected probability of compound transaction payment occurrence		1.00%
Expected probability of compound transaction payment occurrence			10.00%	33.00%
Fair Value Measurements Recurring Basis \| Money Market Funds \| Level 1
Fair Value Disclosures [Line Items]
Unrealized gains and losses on investments		$ 0

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured on a Recurring Basis

Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements are as follows (in thousands):

	Fair Value Measurements
	December 31, 2019
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	155,523	$	155,523	$	—	$	—
Restricted cash (money market funds)		240		240		—		—
Total financial assets	$	155,763	$	155,763	$	—	$	—
Liabilities:
Contingent consideration	$	102	$	—	$	—	$	102

	Fair Value Measurements
	December 31, 2018
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	71,062	$	71,062	$	—	$	—
Restricted cash (money market funds)		835		835		—		—
Total financial assets	$	71,897	$	71,897	$	—	$	—
Liabilities:
Contingent consideration	$	60	$	—	$	—	$	60

Summary of Changes in the Estimated Fair Value of Contingent Consideration

The following table sets forth a summary of changes in the estimated fair value of the contingent consideration (in thousands):

Balance as of December 31, 2017	$	3,290
Change in fair value of the contingent consideration liability		(3,230	)
Balance as of December 31, 2018	$	60
Change in fair value of the contingent consideration liability		42
Balance as of December 31, 2019	$	102

Revenue - Activities and Ending Reserve Balances for Each Significant Category of Discounts and Allowances (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Product Sales Discounts And Allowances [Line Items]
Balance at December 31, 2018	$ 0
Activity related to 2019 sales	344,486
Payments and customer credits issued	(257,339)
Balance at December 31, 2019	87,147
Chargebacks and Discounts for Prompt Payment
Product Sales Discounts And Allowances [Line Items]
Balance at December 31, 2018	0
Activity related to 2019 sales	226,901
Payments and customer credits issued	(191,742)
Balance at December 31, 2019	35,159
Rebates
Product Sales Discounts And Allowances [Line Items]
Balance at December 31, 2018	0
Activity related to 2019 sales	46,810
Payments and customer credits issued	(19,316)
Balance at December 31, 2019	27,494
Other Fees, Co-pay Assistance and Returns
Product Sales Discounts And Allowances [Line Items]
Balance at December 31, 2018	0
Activity related to 2019 sales	70,775
Payments and customer credits issued	(46,281)
Balance at December 31, 2019	$ 24,494

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying consolidated financial statements include the accounts of Coherus and its wholly owned subsidiaries as of December 31, 2019: Coherus Intermediate Corp, InteKrin Therapeutics Inc. (“InteKrin”) and InteKrin’s wholly-owned subsidiary, InteKrin Russia. Unless otherwise specified, references to the Company are references to Coherus and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.

Liquidity

As of December 31, 2019, the Company had an accumulated deficit of $895.0 million and cash and cash equivalents of $177.7 million. The Company had $89.8 million in net income for the year ended December 31, 2019. The Company believes that its current available cash, cash equivalents and cash collected from UDENYCA^® sales will be sufficient to fund its planned expenditures and meet the Company’s obligations for at least 12 months following its financial statement issuance date. The Company may need to raise additional funds in the future; however there can be no assurance that such efforts will be successful or that, in the event that they are successful, the terms and conditions of such financing will be favorable. If the Company is unable to obtain adequate financing when needed, it may have to delay, reduce the scope of or suspend one or more of its clinical trials, or research and development programs.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures reported in the financial statements. Management uses significant judgment when making estimates including, but not limited to: those related to revenue recognition, including determining the nature and timing of satisfaction of performance obligations, and determing the standalone selling price of performance obligations, and variable consideration such as rebates, chargebacks, sales returns and sale allowances, as well as milestones included in collaboration and license arrangements; related to its stock-based compensation, valuation of deferred tax assets, impairment of goodwill and long-lived assets, the valuation of acquired intangible assets, valuation and reserves for inventory, clinical trial accruals, contingent consideration, convertible notes valuation, as well as certain accrued liabilities. Management bases its estimates on historical experience and on other various assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when these values are not readily apparent from other sources. Accounting estimates and judgements are inherently uncertain and the actual results could differ from these estimates.

Foreign Currency

The functional currency of InteKrin Russia, which the Company acquired in February 2014, is the Russian Ruble. Accordingly, the financial statements of this subsidiary are translated into U.S. dollars using appropriate exchange rates. Unrealized gains or losses on translation are recognized in accumulated other comprehensive loss in the consolidated balance sheet.

For the years ended December 31, 2019, 2018 and 2017, the foreign exchange gains and losses recorded in other income (expense), net in the consolidated statements of operations were a net gain of $239,000, a net loss of $571,000 and a net gain of $52,000, respectively.

Segment Reporting and Revenue by Geographic Region

The Company operates and manages its business as one reportable and operating segment, which is the business of developing and commercializing biosimilar products and, as part of the InteKrin acquisition, small molecules. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for purposes of allocating resources and evaluating financial performance. Long-lived assets are primarily maintained in the United States of America.

The following table summarizes revenue by geographic region (in thousands):

	Year Ended December 31,
	2019		2018		2017
United States	$	356,071	$	—	$	—
Rest of the world		—		—		1,556
Total revenue	$	356,071	$	—	$	1,556

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. The Company limits cash investments to financial institutions with high credit standings; therefore, management believes that there is no significant exposure to any credit risk in the Company’s cash, cash equivalents and restricted cash.

	Year Ended December 31,
	2019		2018		2017
Cash and cash equivalents	$	177,668	$	72,356	$	126,911
Restricted cash		—		50		60
Restricted cash - non-current		240		785		785
Total cash, cash equivalents and restricted cash	$	177,908	$	73,191	$	127,756

Restricted cash – non-current consists of deposits for a letter of credit that the Company has provided to secure its obligations under certain facility leases.

Investments in Marketable Securities

Management determines the appropriate classification of investments in marketable securities at the time of purchase based upon management’s intent with regards to such investments and reevaluates such designation as of each balance sheet date. All investments in marketable securities are held as “available-for-sale” and are carried at the estimated fair value as determined based upon quoted market prices or pricing models for similar securities.

The Company classifies investments in marketable securities as short-term when they have remaining contractual maturities of one year or less from the balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of accumulated comprehensive income (loss). Realized gains and losses and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in other income (expense), net, based on specific identification method. The Company started investing in marketable securities in 2017. For the years ended December 31, 2019, 2018 and 2017 interest income from marketable securities was $1.6 million, $1.4 million and $0.8 million, respectively.

Trade Receivables

Trade receivables are recorded net of allowances for chargebacks, chargeback prepayments, and cash discounts for prompt payment. The Company’s estimate of the allowance for doubtful accounts is based on an evaluation of the aging of its receivables. Trade receivable balances are written off against the allowance when it is probable that the receivable will not be collected. To date, the Company has determined that an allowance for doubtful accounts is not required.

Concentration of Credit Risk

The Company’s financial instruments that are exposed to concentration of credit risk consist primarily of cash, cash equivalents and restricted cash. The Company maintains its cash in bank accounts, which at times exceed federally insured limits. The Company attempts to minimize the risks related to cash, cash equivalents and restricted cash by investing in money markets with a broad and diverse range of financial instruments. The investment portfolio is maintained in accordance with the Company’s investment policy, which defines allowable investments, specifies credit quality standards and limits the credit exposure of any single issuer. The Company also maintains restricted cash in money market funds that invest primarily in U.S. Treasury securities. The Company has not recognized any losses from credit risks on such accounts during any of the periods presented. The Company believes it is not exposed to significant credit risk on its cash and money market funds.

The Company is subject to credit risk from trade receivables related to the product sales in the United States. To date, the Company has not experienced significant losses with respect to the collection of trade receivables. The Company believes that its allowance for doubtful accounts was adequate at December 31, 2019.

The Company entered into a strategic commercial supply agreement with KBI Biopharma (“KBI”) for the supply of UDENYCA^®. The Company currently has not engaged back-up suppliers or vendors for this single-sourced service. If KBI is not able to manufacture the supply needed in the quantities and timeframe required, the Company may not be able to supply the product in a timely manner.

Fair Value of Financial Instruments

Fair value accounting is applied to all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

Inventory

Prior to the regulatory approval of the product candidates, the Company incurred expenses for the manufacture of drug product that could potentially be available to support the commercial launch of its products. The Company began to capitalize inventory costs associated with UDENYCA^® after receiving regulatory approval for UDENYCA^® in November 2018 when it was determined that the inventory had a probable future economic benefit.

Inventory is stated at the lower of cost or estimated net realizable value with cost determined under the first-in first-out method. Inventory costs include third-party contract manufacturing, third-party packaging services, freight, labor costs for personnel involved in the manufacturing process, and indirect overhead costs. The Company primarily uses actual costs to determine the cost basis for inventory. The determination of whether inventory costs will be realizable requires management review of the expiration dates of UDENYCA^® compared to its forecasted sales. If actual market conditions are less favorable than projected by management, write-downs of inventory may be required, which would be recorded as cost of goods sold in the consolidated statement of operations.

Property and Equipment

Computer equipment and software		3 years
Furniture and fixtures		5 years
Machinery and equipment		5 years
Leasehold improvements		Shorter of lease term or useful life

Impairment of Long Lived Assets and Acquired Intangible Asset

The Company reviews long-lived assets, including property and equipment, and indefinite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Impairment, if any, is measured as the amount by which the carrying value of a long-lived asset exceeds its fair value. For the years ended December 31, 2019, 2018 and 2017, the Company recorded an impairment of property and equipment of $0.1 million, $3.9 million and $0.6 million, respectively, in research and development within the statement of operations.

The intangible assets of $2.6 million as of December 31, 2019 and 2018 comprise of acquired in-process research and development (“IPR&D”), which represents the fair value assigned to research and development assets that have not reached technological feasibility. The Company reviews amounts capitalized as acquired IPR&D for impairment at least annually, and whenever events or changes in circumstances indicate that the carrying value of the assets might not be recoverable. If the carrying value of the acquired IPR&D exceeds its fair value, then the intangible asset is written-down to its fair value. As of December 31, 2019, there have been no such impairments. Once the product candidate derived from the indefinite-lived intangible asset has been developed and commercialized, the useful life will be determined, and the carrying value of the finite-lived asset will be amortized prospectively over the estimated useful life. Alternatively, if the product candidate is abandoned, the carrying value of the intangible will be charged to research and development expense.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The Company tests goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that this asset may be impaired. The goodwill test is based on our single operating segment and reporting unit structure.

The Company compares the fair value of its reporting unit to its carrying value. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company would need to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of the reporting unit’s goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. No goodwill impairment was identified through December 31, 2019.

Accrued Research and Development Expenses

Accrued Research and Development Expense

Clinical trial costs are a component of research and development expense. The Company accrues and expenses clinical trial activities performed by third parties based upon actual work completed in accordance with agreements established with clinical research organizations and clinical sites. The Company determines the actual costs through monitoring patient enrollment, discussions with internal personnel and external service providers regarding the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services.

Revenue Recognition

The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, (collectively, the “New Revenue

Standard”) on January 1, 2018 using the modified retrospective method. The Company did not have any active revenue arragements upon adoption of the New Revenue Standards since the collaboration and licensing agreement with Daiichi Sankyo was terminated in July 2017 (See Note 7), therefore, no adjustment to its retained earnings was required.

Topic 606 supersedes all previous revenue recognition requirements in accordance with generally accepted accounting principles. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration to which the entity is entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of Topic 606, it performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transferred to the customer.

Net Product Revenue

The Company accounts for sales of UDENYCA^® under Topic 606 Revenue from Contracts with Customers in 2019. The Company sells UDENYCA^® to wholesalers and distributors, (collectively, “Customers”). The Customers then resell UDENYCA^® to hospitals and clinics (collectively, “Healthcare Providers”) pursuant to contracts with the Company. In addition to distribution agreements with Customers and contracts with Healthcare Providers, the Company enters into arrangements with group purchasing organizations (“GPOs”) that provide for U.S. government-mandated or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of UDENYCA^®. The Company also enters into rebate arrangements with payers, which consist primarily of commercial insurance companies and government entities, to cover the reimbursement of UDENYCA^® to Healthcare Providers. The Company provides co-payment assistance to patients who have commercial insurance and meet certain eligibility requirements. Revenue from product sales is recognized when a Customer controls the product, which occurs upon delivery of UDENYCA^® to and acceptance by that Customer.

Product Sales Discounts and Allowances

Revenue from product sales is recorded at the net sales price (“transaction price”), which includes estimates of variable consideration for which reserves are established and that result from chargebacks, rebates, co-pay assistance, prompt-payment discounts, returns and other allowances that are offered within contracts between the Company and its Customers, Healthcare Providers, payers and GPOs relating to the sales of UDENYCA^®. These reserves are based on the amounts earned or to be claimed on the related sales and are classified as reductions in trade receivables (if the amounts are payable to a Customer) or current liabilities (if the amounts are payable to a party other than a Customer). Where appropriate, these estimates take into consideration a range of possible outcomes that are probability-weighted for relevant factors such as historical experience, current contractual and statutory requirements, specifically known market events and trends, industry data and forecasted Customer buying and payment patterns. Overall, these reserves reflect the best estimates of the amount of consideration to which the Company is entitled based on the terms of its contracts. The amount of variable consideration that is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The actual amount of consideration ultimately received may differ. If actual results in the future vary from the Company’s estimates, the estimates will be adjusted, which will affect the net product revenue in the period that such variances become known.

Chargebacks: Chargebacks are discounts that occur when Healthcare Providers purchase directly from a Customer. Healthcare Providers, which belong to Public Health Service institutions, non-profit clinics, government entities, GPOs, and health maintenance organizations, generally purchase the product at a discounted price. The Customer, in turn, charges back to the Company the difference between the price initially paid by the Customer and the discounted price paid by the Healthcare Providers to the Customer. The allowance for chargebacks is based on an estimate of sales through to Healthcare Providers from the Customer.

Discounts for Prompt Payment: The Company provides for prompt payment discounts to its Customers, which are recorded as a reduction in revenue in the same period that the related product revenue is recognized.

Rebates: Rebates include mandated discounts under the Medicaid Drug Rebate Program, other government programs and commercial contracts. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with these public sector benefit providers. Certain rebate amounts commensurate

with share utilization of UDENYCA^® relative to other pegfilgrastim products. The accrual for rebates is based on statutory or contractual discount rates and expected utilization. The estimates for the expected utilization of rebates are based on Customer and commercially available payer data, as well as data collected from the Healthcare Providers, Customers, GPOs, and historical utilization rates. Rebates invoiced by payers, Healthcare Providers and GPOs are paid in arrears. If actual future rebates vary from estimates, the Company may need to adjust its accruals, which would affect net product revenue in the period of adjustment.

Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue.

Product Returns: The Company offers its Customers a limited product return right, which is principally based upon whether the product is damaged or defective, or the product’s expiration date. Product return allowance is estimated and recorded at the time of sale.

Other Allowances: The Company pays fees to Customers and GPOs for account management, data management and other administrative services. To the extent that the services received are distinct from the sale of products to the customer, these payments are classified in selling, general and administrative expense in the Company’s consolidated statements of operations, otherwise they are included as a reduction in product revenue.

Collaboration and License Revenue

Prior to the adoption of the New Revenue Standard, the Company recognized revenue in accordance with Accounting Standards Codification Topic 605, revenue was recognized when persuasive evidence of an arrangement existed; transfer of technology had been completed, services had been performed or products had been delivered; the fee was fixed and determinable; and collection was reasonably assured. As such, prior period amounts related to the collaboration and license agreement with Daiichi Sankyo, which terminated in July 2017 (see Note 7), reflects revenue in accordance with the historical accounting under Topic 605.

For revenue agreements with multiple elements, the Company identified the deliverables included within the agreement and evaluated which deliverables may represent separate units of accounting based on the achievement of certain criteria, including whether the delivered element had stand-alone value to the collaborator. Deliverables under the arrangement were considered a separate unit of accounting if (i) the delivered item had value to the customer on a standalone basis and (ii) if the arrangement included a general right of return relative to the delivered item and delivery or performance of the undelivered items were considered probable and substantially within the Company’s control.

The Company determined how to allocate arrangement consideration to identified units of accounting based on the selling price hierarchy provided under the relevant guidance. The selling price used for each unit of accounting was based on vendor-specific objective evidence, if available, third party evidence if vendor-specific objective evidence was not available or estimated selling price if neither vendor-specific nor third-party evidence was available. Management was required to exercise considerable judgment in determining whether a deliverable was a separate unit of accounting and in estimating the selling prices of identified units of accounting under its agreements.

Upfront payments received in connection with licenses of the Company’s technology rights were deferred if facts and circumstances dictated that the license did not have stand-alone value. Such payments were recognized as license revenue over the estimated period of performance, which was generally consistent with the terms of the research and development obligations contained in the specific collaboration and license agreement. The Company regularly reviewed the estimated period of performance based on the progress made under each arrangement. Amounts received as funding of research and development activities were recognized as revenue if the collaboration arrangement involved the sale of the Company’s research or development services. However, such funding was recognized as a reduction in research and development expense when the Company engaged in a research and development project jointly with another entity, with both entities participating in project activities and sharing costs and potential benefits of the arrangement.

Cost of Goods Sold

Cost of goods sold consists primarily of third-party manufacturing, distribution, and overhead costs associated with UDENYCA®. A portion of the costs of producing UDENYCA® sold to date was expensed as research and development prior to the FDA approval of UDENYCA® and, therefore, it is not reflected in the cost of goods sold.

On May 2, 2019, the Company and Amgen Inc. and Amgen USA Inc. (collectively “Amgen”) settled a trade secret action brought by Amgen. As a result, cost of goods sold reflects a mid-single digit royalty on net product revenue, which began on July 1, 2019. The royalty cost will continue for five years pursuant to the settlement.

Cost of goods sold for the year ended December 31, 2019, included write-off of prepaid manufacturing costs of $1.3 million due to the cancellation of certain manufacturing reservations, and $0.4 million due to the write-off of excess and obsolete inventory.

Research and Development Expense

Research and development costs are charged to expense as incurred. Research and development expense includes, among other costs, salaries and other personnel-related costs, consultant fees, preclinical costs, cost to manufacture drug candidates, clinical trial costs and supplies, laboratory supply costs, certain upfront and milestone payments under the licensing and collaboration agreements and facility-related costs. Costs incurred under agreements with third parties are charged to expense as incurred in accordance with the specific contractual performance terms of such agreements. Third-party costs include costs associated with manufacturing drug candidates, preclinical and clinical support activities. In certain cases, amounts received as reimbursement for research and development activities from the Company’s collaborators are recognized as a reduction in research and development expense when the Company engages in a research and development project, jointly with another party, with both parties incurring costs while actively participating in project activities and sharing costs and potential benefits of the arrangement. Costs incurred under arrangements where the Company provides research services approximate the amount of revenues recorded. Advance payments for goods or services to be received in the future to be utilized in research and development activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are rendered.

The Company considers regulatory approval of product candidates to be uncertain, and product manufactured prior to regulatory approval may not be sold unless regulatory approval is obtained. The Company expenses manufacturing costs as incurred to research and development expense for product candidates prior to regulatory approval. If, and when, regulatory approval of a product is obtained, the Company will begin capitalizing manufacturing costs related to the approved product into inventory.

License Agreements

The Company has entered and may continue to enter into license agreements to access and utilize certain technology. To determine whether the licensing transactions should be accounted for as a business combination or as an asset acquisition, the Company makes certain judgments, which include assessing whether the acquired set of activities and assets would meet the definition of a business under the relevant accounting rules.

If the acquired set of activities and assets does not meet the definition of a business, the transaction is recorded as an acquisition of assets and, therefore, any acquired IPR&D that does not have an alternative future use is charged to expense at the acquisition date. To date none of the Company’s license agreements have been considered to be the acquisition of a business.

Selling, General and Administrative Expense

Selling, general and administrative expenses are primarily comprised of compensation and benefits associated with sales and marketing, finance, human resources, legal, information technology and other administrative personnel, outside marketing, advertising and legal expenses and other general and administrative costs. The Company expenses the cost of advertising, including promotional expenses, as incurred. Advertising expenses were $4.5 million, $2.8 million, and $0 for the years ended December 31, 2019, 2018 and 2017, respectively.

Stock-Based Compensation

The Company measures the cost of equity-based service awards based on the grant-date fair value of the award. The compensation cost is recognized as expense on a straight-line basis over the vesting period for options and restricted stock units (“RSU”). The Company accounts for forfeitures as they occur.

The Company granted performance stock options (“PSO”) to purchase shares of its common stock, which will vest upon the achievement of specified conditions. The Company determined the fair values of these PSOs using the Black-Scholes option pricing model at the date of grant. For the portion of the PSOs for which the performance condition is considered probable, the Company recognizes stock-based compensation expense on the related estimated fair value of such options on a straight-line basis from the date of grant up to the date when it expects the performance condition will be achieved.

On January 1, 2019, the Company adopted the ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payment to employees, with certain exceptions. Prior to the adoption of ASU No. 2018-07, the Company accounted for equity instruments issued to non-employees using the fair value approach. These equity instruments consisted of stock options, which were valued using the Black-Scholes option-pricing model. Stock-based compensation expense was recognized as the equity instruments were earned. The measurement of stock-based compensation was subject to periodic adjustments as the underlying equity instruments vested.

The Company utilizes the Black-Scholes option-pricing model for estimating fair value of its stock options and ESPP granted. Option valuation models, including the Black-Scholes option-pricing model, require the input of highly subjective assumptions, and changes in the assumptions used can materially affect the grant-date fair value of an award. These assumptions include the risk-free rate of interest, expected dividend yield, expected volatility and the expected life of the award. For RSUs, the Company bases the fair value of awards on the closing market value of the common stock at the date of grant.

Income Taxes

The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company must then assess the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance.

The Company recognizes uncertain income tax positions at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company does not expect its unrecognized tax benefits to change significantly over the next twelve months.

The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had accrued no amounts for interest and penalties related to income tax matters in the Company’s consolidated balance sheet at December 31, 2019 and 2018.

Net Income (Loss) per Share Attributable to Coherus

Basic net income (loss) per share attributable to Coherus is calculated by dividing the net income (loss) attributable to Coherus by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive common shares. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding for the period plus any diluted potential common shares outstanding for the period determined using the treasury stock method for options, RSUs and ESPP and using the if-converted method for the convertible notes (see Note 15).

Comprehensive Income (Loss)

Comprehensive income (loss) is composed of two components: net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that under U.S. GAAP are recorded as an element of stockholders’

equity (deficit), but are excluded from net income (loss). The Company’s other comprehensive income (loss) included unrealized gains and losses from available-for-sale marketable securities and foreign currency translation adjustments for the years ended December 31, 2019, 2018 and 2017.

Recent Accounting Pronouncements

The following are the recent accounting pronouncements adopted by the Company in 2019:

In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02). ASU 2016-02 aims to make leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-02 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2019, and all annual and interim reporting periods thereafter. In July 2018, FASB issued additional authoritative guidance, ASU 2018-11, providing companies with an optional prospective transition method. The Company adopted the new standards on January 1, 2019 using the optional prospective transition method and recognized a right-of-use assets of $7.2 and lease liabilities of $9.2 million on the adoption date on its consolidated balance sheet, primarily comprised of facility lease agreements for its corporate headquarters and laboratory facilities in California. The Company elected the package of practical expedients upon transition, which allows it to apply the guidance prospectively, without reassessing prior conclusions related to contracts containing leases, lease classification and initial direct costs. Accordingly, the results for the year ended December 31, 2019 are presented under Topic 842, and the results for the year ended December 31, 2018 and other prior period amounts were not adjusted and continue to be reported in accordance with the historical accounting under prior lease guidance, ASC Topic 840: Leases (“Topic 840”). The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected an accounting policy that does not recognize right-of-use assets and lease liabilities related to short-term leases. The Company also elected the practical expedient to not separate lease and non-lease components for its facility leases. The Company did not elect to apply the hindsight expedient.

The impact of the adoption of Topic 842 on the accompanying consolidated balance sheet as of January 1, 2019 was as follows (in thousands):

	December 31, 2018		Adjustments Due to the Adoption of Topic 842		January 1, 2019
Operating lease right-of-use asset	$	—	$	7,172	$	7,172
Operating lease liabilities:
Other current liabilities⁽¹⁾	$	419	$	1,665	$	2,084
Other lease liabilities, non-current⁽²⁾	$	1,645	$	5,466	$	7,111

______________________________________________________

(1) Includes current portion of deferred rent and current portion of operating lease liabilities.

(2) Non-current portion of deferred rent and operating lease liabilities.

In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07), which simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payment to employees, with certain exceptions. The amendments in ASU 2018-07 are effective for the Company’s interim and annual reporting periods during the year ending December 31, 2019, and all annual and interim reporting periods thereafter. The Company’s adoption of ASU 2018-07 on January 1, 2019 did not have a material impact on its consolidated financial statements and related disclosures.

In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. These amendments eliminate, modify, or integrate into other SEC requirements certain disclosure rules. Among the amendments is the requirement to present an analysis of changes in stockholders’ equity in the interim financial statements included in quarterly reports on Form 10-Q. The analysis, which can be presented as a footnote or separate statement, is required for the current and comparative quarter and year-to-date interim periods. The amendments are effective for all filings made on or after November 5, 2018. In light of the anticipated timing of effectiveness of the amendments and expected proximity of effectiveness to the filing date for most filers’ quarterly reports, the SEC’s Division of Corporate Finance issued a Compliance and Disclosure Interpretation related to Exchange Act Forms, or CDI – Question 105.09, that provides transition guidance related to this disclosure requirement. CDI – Question 105.09 states that the SEC would not object if the filer’s first

presentation of the changes in stockholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. As such, the Company adopted these SEC amendments on November 5, 2018 and presented the analysis of changes in stockholders’ equity in its interim financial statements beginning in its March 31, 2019 Form 10-Q. The Company adopted the Securities Act Release No. 33-10532 on January 1, 2019 and such adoption did not have a material effect on the Company’s financial position, results of operations, cash flows or stockholders’ equity.

The following are the recent accounting pronouncements that the Company has not yet adopted:

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (ASU 2016-13). ASU 2016-13 implements an impairment model, known as the current expected credit loss model that is based on expected losses rather than incurred losses. Under the new guidance, an entity will recognize as an allowance its estimate of expected credit losses. ASU 2016-13 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2020, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASU 2017-04), which simplifies the current requirements for testing goodwill for impairment by eliminating the second step of the two-step impairment test to measure the amount of an impairment loss. ASU 2017-04 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2020, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements (ASU 2018-13), which eliminates certain disclosure requirements for fair value measurements, and requires public entities to disclose certain new information and modifies some disclosure requirements. The new guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2020, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business or that no material effect is expected on the consolidated financial statements as a result of future adoption.

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 89,833	$ (209,409)	$ (238,286)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(276)	468	(120)
Comprehensive income (loss)	89,557	(208,941)	(238,406)
Comprehensive loss attributable to non-controlling interest	0	70	116
Comprehensive income (loss) attributable to Coherus	$ 89,557	$ (208,871)	$ (238,290)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/exampleRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)		3 Months Ended				12 Months Ended
	May 02, 2019	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) Segments	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 01, 2019 USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit		$ 984,831,000				$ 894,998,000	$ 984,831,000
Cash and cash equivalents		72,356,000				177,668,000	72,356,000	$ 126,911,000
Net income (loss)		(62,596,000)	$ (58,808,000)	$ (43,638,000)	$ (44,297,000)	89,833,000	(209,339,000)	(238,170,000)
Foreign exchange gain (loss)						$ 239,000	(571,000)	52,000
Number of reportable segment \| Segments						1
Number of operating segments \| Segments						1
Impairment of property and equipment						$ 100,000	3,900,000	600,000
Intangible assets		2,620,000				2,620,000	2,620,000
Write-off of prepaid manufacturing costs						1,300,000
Write-off of excess and obsolete inventory						410,000	0	0
Advertising expenses						$ 4,500,000	2,800,000	0
Description of uncertain income tax position						An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.
Accrued interest or Penalties		0				$ 0	0
Operating lease, right-of-use asset		0				10,649,000	0		$ 7,200,000
Operating lease liability noncurrent		0				10,256,000	0		$ 9,200,000
Amgen
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Royalty payment term	5 years
InteKrin Therapeutics Inc
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Impairment of property and equipment						100,000	3,900,000	600,000
Impairment of goodwill						0
InteKrin Therapeutics Inc \| In Process Research and Development
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Impairment of intangible assets excluding goodwill						0
Intangible assets		$ 2,600,000				2,600,000	2,600,000
Available-for-Sale Securities \| Investment in Marketable Securities
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Interest income from marketable securities						$ 1,600,000	$ 1,400,000	$ 800,000

Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue by Significant Customer

Revenue by significant Customer was distributed as follows:

	Year Ended
	December 31, 2019
	Percent of Total
McKesson		42	%
AmeriSource-Bergen Corp		33	%
Cardinal		23	%
Others		2	%
Total revenue		100	%

Activities and Ending Reserve Balances for Each Significant Category of Discounts and Allowances

The activities and ending reserve balances for each significant category of discounts and allowances, which constitute variable consideration, were as follows (in thousands):

	Chargebacks						Other Fees,
	and Discounts						Co-pay
	for Prompt						Assistance
	Payment			Rebates			and Returns			Total
Balance at December 31, 2018	$	—		$	—		$	—		$	—
Activity related to 2019 sales		226,901			46,810			70,775			344,486
Payments and customer credits issued		(191,742	)		(19,316	)		(46,281	)		(257,339	)
Balance at December 31, 2019	$	35,159		$	27,494		$	24,494		$	87,147

Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Components Of Deferred Tax Assets [Abstract]
Net operating loss carryforwards	$ 138,663	$ 168,753
Research and development credits	43,879	39,891
Depreciation and amortization	7,230	7,901
Stock-based compensation	22,807	17,123
Sales related accruals	7,137	0
Other accruals	6,927	3,942
Gross deferred tax assets	226,643	237,610
Right-of-use asset	(2,396)
In-process research and development	(589)	(552)
Gross deferred tax liabilities	(2,985)	(552)
Total net deferred tax asset	223,658	237,058
Less valuation allowance	(223,658)	(237,058)
Net deferred tax assets	$ 0	$ 0

Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 177,668	$ 72,356	$ 126,911
Restricted cash	0	50	60
Restricted cash, non-current	240	785	785
Total cash, cash equivalents and restricted cash	$ 177,908	$ 73,191	$ 127,756

Stock Option Plans and Stock-Based Compensation - Schedule of Weighted Average Assumptions for Black-Scholes Option-Pricing Model Used in Determining Fair Value of Awards (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 months	6 months	6 months
Expected volatility	61.00%	71.00%	68.00%
Risk-free interest rate	1.89%	2.40%	1.42%
Expected dividend yield	0.00%	0.00%	0.00%
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 years	6 years	6 years
Expected volatility	69.00%	71.00%	76.00%
Risk-free interest rate	2.29%	2.77%	2.01%
Expected dividend yield	0.00%	0.00%	0.00%

Debt Obligations - Components of Term Loan (Details) - Term Loan $ in Thousands	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Principal amount of the Term Loan	$ 75,000
Unamortized debt discount and debt issuance costs	(1,337)
Net carrying amount	$ 73,663

Stock Option Plans and Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Option Activities under 2016 and 2014 Plans

The following table sets forth the summary of option activities under the 2016 and 2014 Plans:

	Options Outstanding
	Number of Options			Weighted-Average Exercise Price
Balances at December 31, 2018		14,674,553		$	14.202
Granted - at fair value		5,328,500			15.137
Exercised		(863,940	)		6.869
Forfeited/Cancelled		(1,327,442	)		17.630
Balances at December 31, 2019		17,811,671		$	14.582

Summary of Additional Information Related to Status of Options

Additional information related to the status of options as of December 31, 2019 is summarized as follows:

Number of

Options

Weighted-

Average

Exercise

Price

Weighted-

Average

Contractual

Terms

(Years)

Aggregate Intrinsic Value (in thousands)

Options outstanding

17,811,671

14.582

6.64

93,797

Options vested and exercisable

10,699,012

14.456

5.64

65,412

Summary of RSU Activity, under 2014 Plan

The following table sets forth the summary of RSUs activity, under the 2014 Plan:

	RSUs Outstanding
	Number of RSUs			Weighted-Average Grant Date Fair Value
Balances at December 31, 2018		44,387		$	12.700
RSUs granted		282,804			15.114
RSUs vested		(214,819	)		12.457
RSUs cancelled		(7,622	)		15.798
Balances at December 31, 2019		104,750		$	19.544

Schedule of Stock-Based Compensation Expense

The stock-based compensation expense is reflected in the consolidated statements of operations as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Cost of goods sold (1)	$	108	$	—	$	—
Research and development		12,912		15,339		15,104
General and administrative		20,571		19,458		18,293
Stock-based compensation expense	$	33,591	$	34,797	$	33,397

Capitalized stock-based compensation expense into inventory	$	1,735	$	—	$	—

(1)

Stock-based compensation capitalized into inventory is recognized as cost of sales when the related product is sold.

Schedule of Weighted Average Assumptions for Black-Scholes Option-Pricing Model Used in Determining Fair Value of Awards

The following table illustrates the weighted average assumptions for the Black-Scholes option-pricing model used in determining the fair value of the awards during the years ended December 31, 2019, 2018 and 2017:

	Year Ended December 31,
	2019			2018			2017
Expected term (years)
Stock options		6.00			6.00			6.00
ESPP		0.50			0.50			0.50
Expected volatility
Stock options		69	%		71	%		76	%
ESPP		61	%		71	%		68	%
Risk-free interest rate
Stock options		2.29	%		2.77	%		2.01	%
ESPP		1.89	%		2.40	%		1.42	%
Expected dividend yield
Stock options		0	%		0	%		0	%
ESPP		0	%		0	%		0	%

Inventory - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory [Line Items]
Prepayment made for manufacturing services	$ 8,578	$ 7,906
Contract Manufacturing Organization
Inventory [Line Items]
Prepayment made for manufacturing services	$ 7,200	$ 6,600

Debt Obligations - Components of Interest Expense of Convertible Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Accretion of debt discount and debt issuance costs	$ 2,339	$ 1,484	$ 1,352
Interest expense	2,457	2,421	2,388
Total interest expense	17,601	9,684	9,552
8.2% Senior Convertible Notes Due March 2022
Debt Instrument [Line Items]
Total interest expense	9,830	9,684	9,552
8.2% Senior Convertible Notes Due March 2022 \| Related Party Debt
Debt Instrument [Line Items]
Stated coupon interest	2,050	2,050	2,050
Accretion of debt discount and debt issuance costs	407	371	338
Interest expense	2,457	2,421	2,388
8.2% Senior Convertible Notes Due March 2022 \| Parent Company
Debt Instrument [Line Items]
Stated coupon interest	6,150	6,150	6,150
Accretion of debt discount and debt issuance costs	1,223	1,113	1,014
Interest expense	$ 7,373	$ 7,263	$ 7,164

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2.	Basis of Presentation and Summary of Significant Accounting Policies

Basis of Consolidation

Liquidity

Use of Estimates

Foreign Currency

Segment Reporting and Revenue by Geographic Region

The following table summarizes revenue by geographic region (in thousands):

	Year Ended December 31,
	2019		2018		2017
United States	$	356,071	$	—	$	—
Rest of the world		—		—		1,556
Total revenue	$	356,071	$	—	$	1,556

Cash, Cash Equivalents and Restricted Cash

	Year Ended December 31,
	2019		2018		2017
Cash and cash equivalents	$	177,668	$	72,356	$	126,911
Restricted cash		—		50		60
Restricted cash - non-current		240		785		785
Total cash, cash equivalents and restricted cash	$	177,908	$	73,191	$	127,756

Restricted cash – non-current consists of deposits for a letter of credit that the Company has provided to secure its obligations under certain facility leases.

Investments in Marketable Securities

Trade Receivables

Concentration of Credit Risk

Fair Value of Financial Instruments

Inventory

Property and Equipment

Computer equipment and software		3 years
Furniture and fixtures		5 years
Machinery and equipment		5 years
Leasehold improvements		Shorter of lease term or useful life

Impairment of Long Lived Assets and Acquired Intangible Asset

Goodwill

Accrued Research and Development Expense

Revenue Recognition

Net Product Revenue

Product Sales Discounts and Allowances

Collaboration and License Revenue

Cost of Goods Sold

Research and Development Expense

License Agreements

Selling, General and Administrative Expense

Stock-Based Compensation

Income Taxes

Net Income (Loss) per Share Attributable to Coherus

Comprehensive Income (Loss)

Recent Accounting Pronouncements

The following are the recent accounting pronouncements adopted by the Company in 2019:

The impact of the adoption of Topic 842 on the accompanying consolidated balance sheet as of January 1, 2019 was as follows (in thousands):

	December 31, 2018		Adjustments Due to the Adoption of Topic 842		January 1, 2019
Operating lease right-of-use asset	$	—	$	7,172	$	7,172
Operating lease liabilities:
Other current liabilities⁽¹⁾	$	419	$	1,665	$	2,084
Other lease liabilities, non-current⁽²⁾	$	1,645	$	5,466	$	7,111

______________________________________________________

(1) Includes current portion of deferred rent and current portion of operating lease liabilities.

(2) Non-current portion of deferred rent and operating lease liabilities.

The following are the recent accounting pronouncements that the Company has not yet adopted:

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes are as follows (in thousands):

	Year Ended December 31,
	2019		2018			2017
Domestic	$	92,584	$	(208,843	)	$	(222,674	)
Foreign		190		(496	)		(15,496	)
Total	$	92,774	$	(209,339	)	$	(238,170	)

Schedule of Provision For (Benefit From) Income Taxes

Provision for (benefit from) income taxes (in thousands):

	Year Ended December 31,
	2019		2018		2017
Current
Federal	$	—	$	—	$	—
State		2,942		—		—
Foreign		—		—		—
Subtotal	$	2,942	$	—	$	—

Deferred
Federal	$	—	$	—	$	—
State		—		—		—
Foreign		—		—		—
Subtotal	$	—	$	—	$	—

Provision for income taxes	$	2,942	$	—	$	—

Reconciliation of Statutory U.S. Federal Rate

A reconciliation of the statutory U.S. federal rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2019			2018			2017
Percent of pre-tax income:
U.S. federal statutory income tax rate		21.00	%		21.00	%		34.00	%
State taxes, net of federal benefit		1.51			0.16			0.80
Foreign rate differences		(0.04	)		(0.05	)		(2.21	)
Permanent items		(0.64	)		0.15			(0.19	)
Research and development credit		(4.77	)		2.61			2.10
Effect in NOLs due to adoption of ASU 2016-09		—			—			4.55
U.S. Tax Reform tax rate change		—			—			(36.90	)
Other		0.55			2.23			(0.21	)
Change in valuation allowance		(14.44	)		(26.10	)		(1.94	)
Effective income tax rate		3.17	%		—	%		—	%

Components of Net Deferred Tax Assets

Significant components of the Company’s net deferred tax assets as of December 31, 2019 and 2018 consist of the following (in thousands):

	December 31,
	2019			2018
Net operating loss carryforwards	$	138,663		$	168,753
Research and development credits		43,879			39,891
Depreciation and amortization		7,230			7,901
Stock-based compensation		22,807			17,123
Sales related accruals		7,137			—
Other accruals		6,927			3,942
Gross deferred tax assets		226,643			237,610
Right-of-use asset		(2,396	)		—
In-process research and development		(589	)		(552	)
Gross deferred tax liabilities		(2,985	)		(552	)
Total net deferred tax asset		223,658			237,058
Less valuation allowance		(223,658	)		(237,058	)
Net deferred tax assets	$	—		$	—

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands):

	Year Ended December 31,
	2019			2018		2017
Balance at beginning of year	$	18,115		$	15,682	$	18,682
Additions based on tax positions related to current year		1,206			1,276		3,387
Additions (reductions) for tax positions of prior years		(7,718	)		1,157		(6,387	)
Balance at end of year	$	11,603		$	18,115	$	15,682

Commitments and Contingencies - Additional Information (Details)	May 02, 2019
Amgen
Loss Contingencies [Line Items]
Royalty payment term	5 years

Debt Obligations - Term Loan - Additional Information (Details) - USD ($)		3 Months Ended								12 Months Ended
	Jan. 07, 2019	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2021	Dec. 31, 2019	Jan. 01, 2020	Feb. 29, 2016
Debt Instrument [Line Items]
Net sales		$ 123,856,000	$ 111,684,000	$ 83,433,000	$ 37,098,000	$ 0	$ 0	$ 0	$ 0
Term Loan
Debt Instrument [Line Items]
Aggregate principal amount		$ 75,000,000									$ 75,000,000
Effective interest rate		10.70%									10.70%
Net sales											$ 250,000,000.0
Debt instrument maturity date											Jan. 07, 2025
Payment of closing fee to the lenders in form of origination issue discount	$ 1,100,000
Percentage required to pay an additional exit fee on principal amount	4.00%
Consolidated net sales, 2020											$ 125,000,000.0
Consolidated net sales, thereafter											150,000,000.0
Unamortized debt discount and debt issuance costs on Term Loan		$ 4,337,000									$ 4,337,000
Amortized effective interest rate Term Loan period											5 years
Term Loan \| Paid on or Prior to the Three Year Anniversary of Closing Date
Debt Instrument [Line Items]
Prepayment premium, description											with respect to any prepayment paid or required to be paid on or prior to the three year anniversary of the Credit Agreement Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid, plus all required interest payments that would have been due on the Borrowings prepaid or required to be prepaid through and including the three year anniversary of the Credit Agreement Closing Date
Prepayment premium percentage		5.00%									5.00%
Term Loan \| Paid after the Three Year but on or Prior to the Four Year Anniversary of Closing Date
Debt Instrument [Line Items]
Prepayment premium, description											with respect to any prepayment paid or required to be paid after the three year anniversary of the Credit Agreement Closing Date but on or prior to the four year anniversary of the Credit Agreement Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage		5.00%									5.00%
Term Loan \| Paid after the Four Year but on or Prior to the Five Year Anniversary of Closing Date
Debt Instrument [Line Items]
Prepayment premium, description											with respect to any prepayment paid or required to be paid after the four year anniversary of the Credit Agreement Closing Date but on or prior to the five year anniversary of the Credit Agreement Closing Date, 2.50% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage		2.50%									2.50%
Term Loan \| Paid Thereafter
Debt Instrument [Line Items]
Prepayment premium, description											with respect to any prepayment paid or required to be prepaid thereafter, 1.25% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage		1.25%									1.25%
Term Loan \| Minimum
Debt Instrument [Line Items]
Consolidated net sales, 2019											$ 70,000,000.0
Term Loan \| Maximum \| Scenario Forecast
Debt Instrument [Line Items]
Net sales										$ 375,000,000.0
Term Loan \| LIBOR
Debt Instrument [Line Items]
Effective interest rate	7.00%
Term Loan \| Subsequent Event \| LIBOR
Debt Instrument [Line Items]
Effective interest rate												6.75%
HRP III Member
Debt Instrument [Line Items]
Aggregate principal amount													$ 75,000,000.0
HRP III Member \| Term Loan
Debt Instrument [Line Items]
Term loan facility term	6 years
Aggregate principal amount	$ 75,000,000.0

Inventory (Tables)

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventory

The Company began capitalizing inventory in November 2018 once the FDA approved UDENYCA^®. Inventory consisted of the following (in thousands):

	December 31,		December 31,
	2019		2018
Raw materials	$	5,089	$	2,851
Work in process		43,446		1,576
Finished goods		6,536		1,244
Total	$	55,071	$	5,671

Schedule of Balance Sheet Classification

Balance sheet classification (in thousands):

	December 31,		December 31,
	2019		2018
Inventory	$	9,807	$	1,659
Inventory, non-current		45,264		4,012
Total	$	55,071	$	5,671

Inventory

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Inventory

The Company began capitalizing inventory in November 2018 once the FDA approved UDENYCA^®. Inventory consisted of the following (in thousands):

	December 31,		December 31,
	2019		2018
Raw materials	$	5,089	$	2,851
Work in process		43,446		1,576
Finished goods		6,536		1,244
Total	$	55,071	$	5,671

Balance sheet classification (in thousands):

	December 31,		December 31,
	2019		2018
Inventory	$	9,807	$	1,659
Inventory, non-current		45,264		4,012
Total	$	55,071	$	5,671

Inventory expected to be sold in periods more than twelve months from the balance sheet is classified as inventory, non-current on the consolidated balance sheets. As of December 31, 2019 and 2018, the non-current portion of inventory consisted of raw materials and a portion of work in process.

Prepaid manufacturing of $8.6 million and $7.9 million on the consolidated balance sheets as of December 31, 2019 and 2018, respectively, includes prepayments of $7.2 million and $6.6 million as of December 31, 2019 and 2018, respectively, made to a contract manufacturing organization (“CMO”) for manufacturing services for UDENYCA^®, which the Company expects to be converted into inventory within the next twelve months.

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2019
Computer Equipment and Software
Property Plant And Equipment [Line Items]
Estimated useful lives	3 years
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Machinery and Equipment
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives, description	Shorter of lease term or useful life

Supplementary Data - Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 123,856	$ 111,684	$ 83,433	$ 37,098	$ 0	$ 0	$ 0	$ 0
Gross profit	116,051	105,237	82,832	34,873
Total operating expenses	78,823	59,843	55,940	53,697	60,502	56,972	44,910	42,032	$ 248,303	$ 204,416	$ 233,692
Net income (loss)	$ 39,227	$ 47,043	$ 23,567	$ (20,004)	$ (62,596)	$ (58,826)	$ (43,685)	$ (44,302)	$ 89,833	$ (209,409)	$ (238,286)
Net income (loss) per share attributable to Coherus:
Basic	$ 0.56	$ 0.67	$ 0.34	$ (0.29)					$ 1.29	$ (3.22)	$ (4.48)
Diluted	$ 0.53	$ 0.63	$ 0.32	$ (0.29)					$ 1.23	$ (3.22)	$ (4.48)
Net loss per share attributable to Coherus, basic and diluted					$ (0.92)	$ (0.87)	$ (0.68)	$ (0.74)
Net income (loss) attributable to Coherus					$ (62,596)	$ (58,808)	$ (43,638)	$ (44,297)	$ 89,833	$ (209,339)	$ (238,170)

Stock Option Plans and Stock-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Oct. 31, 2014	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance		230,795
Options granted, weighted-average grant-date fair value		$ 9.52	$ 7.77	$ 11.70
Options exercised, aggregate intrinsic value		$ 10,300,000	$ 4,900,000	$ 2,100,000
Stock-based compensation expense		33,591,000	34,797,000	33,397,000
Unrecognized stock-based compensation expenses related to stock options		$ 56,400,000
Unrecognized share-based compensation related to stock options, RSUs and ESPP, period for recognition		2 years 10 months 24 days
Share based payment options grants		5,328,500
Weighted-average exercise price of options granted		$ 15.137
Expected dividend yield		$ 0
Defined contribution plan name		401(k) Plan
Percentage of maximum contribution of annual compensation		99.00%
Percentage of employer matching contributions		50.00%
Employer matching contribution of each participant's contribution plan		$ 6,000
Compensation expense related to match plan		$ 800,000
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Options, expiration period		10 years
Stock-based compensation expense		$ 30,000,000.0	31,400,000	29,000,000.0
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 800,000	700,000	600,000
Unrecognized share-based compensation related to stock options, RSUs and ESPP, period for recognition		1 year 2 months 12 days
Total fair value of RSUs vested		$ 2,700,000	1,000,000.0	2,900,000
Total estimated grant date fair value		$ 4,300,000	$ 78,000	$ 6,400,000
Estimated weighted-average grant-date fair value of RSUs granted		$ 15.11	$ 15.60	$ 10.43
Unrecognized stock-based compensation expenses related to unvested RSUs		$ 1,300,000
Share based payment RSUs grants		10,000
Restricted Stock Units \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		3 years
Restricted Stock Units \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		2 years
Two Thousand Seventeen Bonus Payout Settled In Restricted Stock Units RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total fair value of RSUs vested				$ 2,700,000
Total estimated grant date fair value				4,300,000
Performance Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 800,000	$ 500,000	0
Nonemployees Stock-Based Compensation
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 700,000	$ 1,600,000	$ 1,900,000
Share based payment options grants		0	147,500	60,000
Weighted-average exercise price of options granted			$ 14.32	$ 13.47
2014 Equity Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of shares available for issuance		4.00%	4.00%
Common stock reserved for future issuance		420,581
2014 Equity Incentive Award Plan \| Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Estimated weighted-average grant-date fair value of RSUs granted		$ 15.114
Share based payment RSUs grants		282,804
2014 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance		2,316,555
Stock-based compensation expense		$ 1,300,000	$ 800,000	$ 80,000
Unrecognized share-based compensation related to stock options, RSUs and ESPP, period for recognition		4 months 15 days
Unrecognized stock-based compensation expenses related to unvested RSUs		$ 800,000
Percentage of purchase common stock of lesser of fair market value of common stock on first or last day of offering period by eligible employees		85.00%
Employee stock purchase plan offering period one	--05-16
Employee stock purchase plan offering period two	--11-16
2014 Employee Stock Purchase Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of shares reserve for issuance	1.00%

Net Income (Loss) Per Share Attributable to Coherus - Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net Income (Loss) Per Share Attributable to Coherus (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	14,908,410	19,261,805	16,027,317
Stock Options, Including Purchases from Contributions to ESPP
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	10,412,471	14,743,547	11,433,069
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	22,068	44,387	120,377
Shares Issuable Upon Conversion of Convertible Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	4,473,871	4,473,871	4,473,871

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Lease Liabilities Payments Due [Abstract]
2020	$ 3,141
2021	3,173
2022	3,034
2023	3,171
2024	2,614
Total lease payments	15,133
Less imputed interest	(2,681)
Operating lease liabilities	$ 12,452