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Accrued liabilities (includes related parties of $6,041 and $6,122 as of September 30, 2016 and December 31, 2015, respectively)

2,860

3,548

^[1]

24,875

24,133

^[1]

Advance payments under license agreement

1,150

1,330

^[1]

Total current liabilities

1,377

49,621

^[1]

Contingent consideration

4,990

1,245

^[1]

Other liabilities

251

193

^[1]

58,386

106,018

^[1]

Convertible notes - related parties

595

45,338

^[1]

Convertible notes

74,953

24,985

Other liabilities, non-current

^[1]

66,255

1,716

1,702

^[1]

Total liabilities

160,635

219,313

^[1]

Commitments and contingencies (Note 7)

^[1]

Stockholders’ equity (deficit):

Preferred stock

^[1]

Common stock

^[1]

Additional paid-in capital

494,831

404,175

^[1]

Accumulated other comprehensive loss

(562)

(401)

^[1]

Accumulated deficit

(461,401)

(409,985)

^[1]

Total Coherus stockholders' equity (deficit)

32,872

(6,207)

^[1]

Non-controlling interest

(1,150)

(722)

^[1]

Total stockholders' equity (deficit)

31,722

(6,929)

^[1]

Total liabilities and stockholders’ equity (deficit)

$ 192,357

$ 212,384

^[1]

[1]	The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016.

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands

Sep. 30, 2016

Dec. 31, 2015

Accrued liabilities, related parties

$ 16,645

$ 34,743

^[1]

6,041

6,122

Clinical Material Manufacturing And Other Related Parties

Adjustments to reconcile net loss to net cash used in operating activities:

$ 5,771

$ 10,901

[1]	The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016.

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Collaboration and license revenue	$ 162,835	$ 7,167	$ 189,262	$ 19,843
Operating expenses:
Research and development (includes related party of $7,899 and $10,034 for the three months ended September 30, 2016 and 2015, respectively; and $32,019 and $33,919 for the nine months ended September 30, 2016 and 2015, respectively)	64,573	68,218	195,430	161,629
General and administrative (includes related party of $30 and $168 for the three months ended September 30, 2016 and 2015, respectively; and $80 and $511 for the nine months ended September 30, 2016 and 2015, respectively)	13,645	10,166	36,303	25,074
Total operating expenses	78,218	78,384	231,733	186,703
Income (loss) from operations	84,617	(71,217)	(42,471)	(166,860)
Interest expense (includes related party of $590 and $0 for the three months ended September 30, 2016 and 2015, respectively; and $1,388 and $0 for the nine months ended September 30, 2016 and 2015, respectively)	(2,420)	(33)	(5,611)	(33)
Other income (expense), net	1,647	(235)	(3,762)	(4,465)
Net income (loss)	83,844	(71,485)	(51,844)	(171,358)
Net loss attributable to non-controlling interest	95	151	428	489
Net income (loss) attributable to Coherus	$ 83,939	$ (71,334)	$ (51,416)	$ (170,869)
Net income (loss) per share attributable to Coherus:
Basic	$ 1.93	$ (1.86)	$ (1.25)	$ (4.68)
Diluted	$ 1.67	$ (1.86)	$ (1.25)	$ (4.68)
Weighted-average number of shares used in computing net income (loss) per share attributable to Coherus:
Basic	43,469,986	38,426,734	41,096,783	36,510,756
Diluted	51,581,298	38,426,734	41,096,783	36,510,756

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Research and development from transactions with related party	$ 7,899	$ 10,034	$ 32,019	$ 33,919
General and administrative expenses from transactions with related party	30	168	80	511
Interest expense from transactions with related party	$ 590	$ 0	$ 1,388	$ 0

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 83,844	$ (71,485)	$ (51,844)	$ (171,358)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(38)	47	(161)	52
Comprehensive income (loss)	83,806	(71,438)	(52,005)	(171,306)
Comprehensive loss attributable to non-controlling interest	95	151	428	489
Comprehensive income (loss) attributable to Coherus	$ 83,901	$ (71,287)	$ (51,577)	$ (170,817)

Condensed Consolidated Statements of Cash Flows - USD ($)

9 Months Ended

Sep. 30, 2016

Sep. 30, 2015

Operating activities

Net loss

$ (51,844,000)

$ (171,358,000)

Depreciation and amortization

2,199,000

1,268,000

Remeasurement of fair-value of contingent consideration

3,745,000

4,414,000

Non-cash interest expense (income) from amortization of debt discount (receivable)

723,000

(38,000)

Impairment of property and equipment

8,000

128,000

Provision for other receivables

(1,300,000)

Stock-based compensation expense

19,736,000

11,547,000

Changes in operating assets and liabilities:

Receivables from collaboration and license agreement

1,141,000

1,877,000

Notes receivable

1,853,000

Other assets, related party

18,111,000

(11,194,000)

Other assets

3,579,000

(2,331,000)

1,691,000

Other assets, non-current

88,000

42,000

Accounts payable

(1,642,000)

19,100,000

Accrued and other liabilities

(688,000)

1,072,000

(75,000)

13,771,000

Advance payments under license agreements

(93,013,000)

(383,000)

(180,000)

(1,192,000)

Other liabilities, non-current

(66,255,000)

15,850,000

14,000

326,000

Net cash used in operating activities

(165,653,000)

(113,557,000)

Investing activities

Purchases of property and equipment

(2,949,000)

(4,720,000)

Increase in restricted cash

(785,000)

Net cash used in investing activities

(2,949,000)

(5,505,000)

Proceeds from issuance of convertible notes

75,000,000

Proceeds from issuance of convertible notes - related parties

25,000,000

Proceeds from follow-on offering, net of underwriters discounts and commissions

112,800,000

Proceeds from private placement

10,000,000

Proceeds from common stock offering, net of underwriters discounts and commissions

69,472,000

Payments of convertible notes issuance costs

(739,000)

Proceeds from issuance of common stock upon exercise of stock options

1,957,000

1,015,000

Net cash provided by financing activities

170,180,000

122,359,000

Effect of exchange rate changes in cash and cash equivalents

(127,000)

2,000

Net increase in cash and cash equivalents

1,451,000

3,299,000

Cash and cash equivalents at beginning of period

158,226,000

^[1]

150,392,000

Cash and cash equivalents at end of period

159,677,000

153,691,000

Common Stock Offering

Payments of offering costs

$ (510,000)

Initial Public Offering

Payments of offering costs

(855,000)

Follow-On Public Offering

Payments of offering costs

$ (601,000)

[1]	The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016.

Organization and Operations

9 Months Ended

Sep. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Operations

1.	Organization and Operations

Description of the Business

Coherus BioSciences, Inc. (the “Company”, “Coherus”, “we”, “our” or “us”) is a late-stage clinical biologics platform company, focused on the global biosimilar market. The Company’s headquarters and laboratories are located in Redwood City, California and in Camarillo, California, respectively. The Company operates in one segment.

Need to Raise Additional Capital

As of September 30, 2016, the Company had an accumulated deficit of $461.4 million and cash and cash equivalents of $159.7 million. In February 2016, the Company issued and sold $100.0 million aggregate principal amount of 8.2% senior convertible notes due March 31, 2022 (see Note 6). In May and June 2016, the Company issued and sold 4,025,000 shares of its common stock at $18.00 per share for net proceeds of $69.0 million (see Note 8). The Company believes that its current available cash and cash equivalents together with funding it expects to receive under its license agreement with Daiichi Sankyo will be sufficient to fund its planned expenditures and meet the obligations through at least the next 12 months. In November 2016, the Company entered into an ATM Offering Program with Cowen and Company, LLC (“Cowen”), as its sales agent, pursuant to which the Company may sell, through Cowen, up to an aggregate of $100.0 million in shares of its common stock (see Note 11). The Company will 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, research and development programs or commercialization efforts.

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2.	Basis of Presentation and Summary of Significant Accounting Policies

Unaudited Condensed Consolidated Financial Statements

The accompanying condensed consolidated financial statements include the accounts of Coherus and its wholly owned subsidiaries as of September 30, 2016: Coherus Intermediate Corp, Coherus Oncology, Inc., Orphonix, Inc., InteKrin Therapeutics Inc. (“InteKrin”), and InteKrin’s 82.5% majority owned subsidiary of InteKrin Russia. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities Act of 1933, as amended (Securities Act). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring accruals that the Company believes are necessary to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period.

The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on February 29, 2016.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its stock-based compensation, valuation of deferred tax assets, impairment of goodwill and long-lived assets, the valuation of acquired intangible assets, clinical trial accruals, revenue recognition period, contingent consideration, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. 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 condensed consolidated balance sheet.

The foreign exchange gains and losses recorded in other expense, net in the condensed consolidated statements of operations for the three months ended September 30, 2016 and 2015, were net losses of $45,000 and $123,000, respectively, and for the nine months ended September 30, 2016 and 2015 were net losses of $401,000 and $162,000, respectively.

Segment Reporting and Customer Concentration

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):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
United States	$	162,537	$	6,807	$	188,292	$	18,599
Rest of world		298		360		970		1,244
Total revenue	$	162,835	$	7,167	$	189,262	$	19,843

Customers whose collaboration and license revenue accounted for 10% or more of total revenues were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Baxalta		99.8	%		95.0	%		99.5	%		93.7	%

Revenue Recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists; transfer of technology has been completed, services have been performed or products have been delivered; the fee is fixed and determinable; and collection is reasonably assured.

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

The Company determines 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 is based on vendor-specific objective evidence, if available, third party evidence if vendor-specific objective evidence is not available or estimated selling price if neither vendor-specific nor third-party evidence is available. Management may be required to exercise considerable judgment in determining whether a deliverable is 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 are deferred if facts and circumstances dictate that the license does not have stand-alone value. Such payments are recognized as license revenue over the estimated period of performance that is generally consistent with the terms of the research and development obligations contained in the specific collaboration and license agreement. The Company regularly reviews the estimated period of performance based on the progress made under each arrangement. Amounts received as funding of research and development activities are recognized as revenue if the collaboration arrangement involves the sale of the Company’s research or development services. However, such funding is recognized as a reduction in research and development expense when the Company engages 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.

Payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved, assuming all other revenue recognition criteria are met. A milestone is defined as an event that can only be achieved based on the Company’s performance where there is substantive uncertainty about whether the event will be achieved at the inception of the arrangement. Events that are contingent only on the passage of time or only on counterparty performance are not considered milestones under accounting guidance. The Company’s evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) the Company’s performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone, (b) the consideration relates solely to past performance and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. The Company evaluates factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the respective milestone, the level of effort and investment required to achieve the respective milestone and whether the milestone consideration is reasonable relative to all deliverables and payment terms in the arrangement in making this assessment.

Other contingent payments in which a portion of the payment is refundable or adjusts based on future performance or non-performance (e.g., through a penalty or claw-back provision) are not considered to relate solely to the Company’s past performance, and therefore, not considered substantive. Non-substantive contingent payments are classified as deferred revenue if they are ultimately expected to result in revenue recognition. The Company recognizes non-substantive contingent payments over the remaining estimated period of performance once the specific objective is achieved. Any portion of the non-substantive contingent payments which may be required to be refunded to the collaborator are not included in deferred revenue and instead are reflected as contingent liability to collaborator on the condensed consolidated balance sheets.

Contingent payments associated with the achievement of specific objectives in certain contracts that are not considered substantive because the Company does not contribute effort to the achievement of such milestones are recognized as revenue upon achievement of the objective, as long as there are no undelivered elements remaining and no continuing performance obligations by the Company, assuming all other revenue recognition criteria are met.

Revenue from a government contract is recognized in the period during which the related costs are incurred and the related services are rendered, provided that the funds received are not refundable and applicable conditions under the government contract have been met. Funds received in advance are recorded as deferred revenue.

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, but are excluded from net income (loss). The Company’s other comprehensive income (loss) includes foreign currency translation adjustments for the three and nine months ended September 30, 2016 and 2015.

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) per share by the weighted average number of common shares outstanding for the period plus any dilutive potential common shares outstanding for the period determined using the treasury stock method for options to purchase common stock and using the if-converted method for the convertible notes. For all periods presented, except for the three months ended September 30, 2016, the Company was in a net loss position and basic net loss per share attributable to Coherus is the same as diluted net loss per share attributable to Coherus as the inclusion of all potential dilutive common shares would have been anti-dilutive for those periods presented (see Note 9). Shares of founders’ common stock subject to repurchase are excluded from the calculation of weighted average shares as the vesting of such shares is contingent upon continued services being rendered by such holders.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which converges the FASB and the International Accounting Standards Board standards on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (“ASU 2015-14”). Under the amendments in ASU 2015-14, the FASB deferred the effective date of ASU 2014-09 for public business entities to fiscal years beginning after December 15, 2017, including interim reporting periods within that reporting period, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. The Company may adopt the new standard under the full retrospective method or the modified retrospective method. The Company is currently evaluating the method and the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements and related disclosures.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing (ASU 2016-10). The amendments in this update clarify the following two aspects: identifying performance obligations and clarifying the licensing implementation guidance. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of ASU 2014-09. The Company is currently evaluating the impact that the adoption of ASU 2016-10 will have on its consolidated financial statements and related disclosures.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients (ASU 2016-12). The amendments in this update, which were issued in response to the feedback received by the FASB-IASB joint revenue recognition transition resource group, clarify the following aspects: collectibility, presentation of sales tax and other similar taxes collected from customers, noncash consideration, contract modifications and completed contracts at transition, and transition technical correction. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of ASU 2014-09. The Company is currently evaluating the impact that the adoption of ASU 2016-12 will have on its consolidated financial statements and related disclosures.

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 is effective for the Company’s annual reporting period ending December 31, 2016 and all annual and interim reporting periods thereafter, with early adoption permitted. The Company has not elected to early adopt this standard. When adopted, ASU 2014-15 will require management to evaluate whether there is substantial doubt about the Company’s ability to continue as a going concern for at least 12 months from the issuance date of the financial statements and to provide related footnote disclosures.

In January 2016, the FASB issued ASU No. 2016-1, Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-1 makes amendments to the classification and measurement of financial instruments and revises the accounting related to: (1) the classification and measurement of investments in equity securities, and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. In addition, the update also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-1 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and all annual and interim reporting periods thereafter. Early adoptions of certain amendments within the update are permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-1 will have on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-2, Leases. ASU 2016-2 is aimed at making leasing activities more transparent and comparable, and requires substantially that 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 2016-2 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. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-2 will have on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU No. 2016-9, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-9 simplifies several aspects of the accounting for share-based payment award transactions, including: (1) the income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. ASU 2016-9 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2017, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-9 will have on its consolidated financial statements and related disclosures.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The amendment to this update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-15 will have on its consolidated financial statements and related disclosures.

As of January 1, 2016, the Company adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the consolidated balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU 2015-03 requires retrospective application. ASU 2015-03 is limited to the presentation of debt issuance costs applied retrospectively to all prior periods presented in the consolidated financial statements and does not affect the recognition and measurement of debt issuance costs.

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 condensed consolidated financial statements as a result of future adoption.

Fair Value Measurements

9 Months Ended

Sep. 30, 2016

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, 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
	September 30, 2016
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	128,870	$	128,870	$	—	$	—
Restricted cash (money market funds)		845		845		—		—
Total financial assets	$	129,715	$	129,715	$	—	$	—
Liabilities:
Contingent consideration	$	4,990	$	—	$	—	$	4,990

	Fair Value Measurements
	December 31, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	157,784	$	157,784	$	—	$	—
Restricted cash (money market funds)		845		845		—		—
Total financial assets	$	158,629	$	158,629	$	—	$	—
Liabilities:
Contingent consideration	$	1,245	$	—	$	—	$	1,245

There were no transfers between Level 1 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 the achievement of certain events specified in the agreements. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy.

The InteKrin purchase agreement provides for contingent consideration to be paid upon (i) the first dosing of a human subject in the first Phase 2 Clinical Trial for CHS-131 ("Earn-Out Payment") and (ii) per a compound transaction agreement as defined in the purchase agreement (the “Compound Transaction Payment”). On March 6, 2015, the Company achieved the first dosing of a human subject in a phase 2 clinical trial for CHS-131 in multiple sclerosis patients, triggering the obligation to settle the first contingent Earn-Out Payment to former InteKrin stockholders. As a result, the Company recognized the additional fair value of the Earn-Out Payment of $4.1 million to other expense, net in the condensed consolidated statement of operations on March 6, 2015 and reclassified the contingent consideration liability balance related to the Earn-Out Payment to equity.

This 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 applied a 25% risk-adjusted discount rate to measure present value and also captured an additional 8% credit spread for counterparty credit risk given the cash payment. The Company’s management estimates of probability of occurrence and timing were used to formulate an expected cash flow. During the second quarter of 2016, the Company reported positive Phase 2b efficacy data on CHS-131, in relapsing remitting multiple sclerosis, and as such management’s probability of occurrence increased from 10% to 33%. In September 2016, the Company determined it would conduct additional non-clinical studies prior to executing a Compound Transaction, and as such, the Company revised its expected completion date of the compound transaction earn-out by nine months which resulted in a $1.6 million change in the fair value of the Compound Transaction Payment from June 30, 2016 to September 30, 2016. 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 a fair value fluctuation of approximately $0.2 million.

The change in the fair value of the Compound Transaction Payment for the three and nine months ended September 30, 2016, was a $1.6 million gain and a $3.7 million loss, respectively, and for the three and nine months ended September 30, 2015, a $135,000 loss and a $275,000 loss, respectively was recognized in other income (expense), net within the condensed consolidated statement of operations.

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, 2015	$	1,245
Change in fair value of the contingent consideration liability		3,745
Balance as of September 30, 2016	$	4,990

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 6) is based on an income approach. The estimated fair value was approximately $164.5 million (par value $100.0 million) as of September 30, 2016 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

Balance Sheet Components

9 Months Ended

Sep. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Components

4.	Balance Sheet Components

Prepaid Assets

Prepaid assets are as follows (in thousands):

	September 30,		December 31,
	2016		2015
Prepaid clinical, material, manufacturing and other - related parties (see Note 10)	$	5,771	$	10,901
Prepaid clinical, material and manufacturing		9,501		21,191
Prepaid other		1,373		2,651
Prepaid assets	$	16,645	$	34,743

Property and Equipment, Net

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

	September 30,			December 31,
	2016			2015
Machinery and equipment	$	9,815		$	7,809
Computer equipment and software		1,381			1,276
Furniture and fixtures		637			596
Leasehold improvements		4,092			4,343
Total property and equipment		15,925			14,024
Accumulated depreciation and amortization		(5,250	)		(3,520	)
Property and equipment, net	$	10,675		$	10,504

Depreciation and amortization expense was $753,000 and $636,000 for the three months ended September 30, 2016 and 2015, respectively, and $2,199,000 and $1,268,000 for the nine months ended September 30, 2016 and 2015, respectively.

Accrued Liabilities

Accrued liabilities are as follows (in thousands):

	September 30,		December 31,
	2016		2015
Accrued clinical, manufacturing and other - related parties (See Note 10)	$	6,041	$	6,122
Accrued clinical and manufacturing		10,725		11,681
Accrued compensation		5,505		4,666
Accrued other		2,604		1,664
Accrued liabilities	$	24,875	$	24,133

Collaboration and License Agreements

9 Months Ended

Sep. 30, 2016

Collaboration And License Agreements [Abstract]

Collaboration and License Agreements

5.	Collaboration and License Agreements

The Company recognized revenue related to the collaboration and license agreements for the periods presented as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Baxalta	$	162,537	$	6,807	$	188,292	$	18,599
Daiichi Sankyo		298		360		970		1,244
Total collaboration and license revenue	$	162,835	$	7,167	$	189,262	$	19,843

Daiichi Sankyo

In January 2012, the Company entered into a license agreement with Daiichi Sankyo, 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 is being amortized over the remaining estimated performance period under the agreement using the straight line method.

In June 2013, the Company and Daiichi Sankyo entered into a Memorandum of Understanding No. 1 (the “MOU 1”) in which both parties agreed to cooperate and share costs to conduct a global Phase 1 study of a biosimilar form of etanercept. This program was not originally contemplated in the license agreement. The amounts received from Daiichi Sankyo under the MOU 1 are recognized as a reduction in research and development expense as the Company engages in a research and development project jointly with Daiichi Sankyo, with both parties incurring costs while actively participating in development activities and both parties sharing costs and potential benefits of the arrangement.

In January 2014, the Company and Daiichi Sankyo entered into the Memorandum of Understanding No. 2 (the “MOU 2”) in which both parties agreed to cooperate to conduct a global Phase 3 clinical trial in rheumatoid arthritis and that Daiichi Sankyo will be responsible for a minimum of 20% of the cost of the clinical trial. Also, both parties entered into a clinical supply agreement contemporaneously with the MOU 2 in which the Company will supply finished study drug and study comparator drug for Daiichi Sankyo’s use in the Japanese portion of the product’s clinical trial. Daiichi Sankyo reimburses these research and development costs in quarterly advance payments, for which the Company records as advance payments under license agreement in the condensed consolidated balance sheet. The Company recognizes the advance payments as a reduction in the research and development expense when the research and development activity has been performed.

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 in rheumatoid arthritis. Under the MOU 3, Daiichi Sankyo will be responsible for a minimum of 20% of the cost of an open label, safety extension study (“OLSES”) in rheumatoid arthritis. The Company also entered into a clinical supply agreement as part of the MOU 3 in which the Company will supply finished study drug and study comparator drug for Daiichi Sankyo’s use in the Japanese portion of the clinical trial. Daiichi Sankyo will pre-pay these research and development costs quarterly, for which the Company records as advance payments under license agreement in the condensed consolidated balance sheet. The Company recognizes the advance payments as a reduction of research and development expense when the research and development activity has been performed.

In July 2016, the Company entered into two memoranda of understanding (the “MOU 4” and the “MOU 5”, with Daiichi Sankyo. Under MOU 4 and MOU 5, the Company will receive up to $1.9 million for reimbursements of certain past costs incurred and to be incurred and the Company will recognize these reimbursements as a reduction of research and development expenses when the research and development activity is performed.

As of September 30, 2016, $1.8 million of revenue was deferred under all arrangements with Daiichi Sankyo, of which $1.2 million was included in current liabilities and $0.6 million was included in non-current liabilities in the condensed consolidated balance sheet. As of December 31, 2015, $2.8 million of revenue was deferred under all arrangements with Daiichi Sankyo, of which $1.5 million was included in current liabilities and $1.3 million was included in non-current liabilities in the condensed consolidated balance sheet.

The Company recognized in its condensed consolidated statements of operations a reduction of research and development expense related to the costs reimbursed by Daiichi Sankyo of $3.1 million and $4.0 million for the three months ended September 30, 2016 and 2015, respectively, and $7.1 million and $7.9 million for the nine months ended September 30, 2016 and 2015, respectively.

Baxalta

The Company entered into a license agreement in August 2013 and two subsequent amendments thereto with Baxalta Incorporated, Baxalta US Inc., and Baxalta GmbH (collectively “Baxalta”) (then Baxter International, Inc., part of Shire plc as of June 2016), to develop and commercialize an etanercept biosimilar molecule, CHS-0214, worldwide, excluding the United States, Japan, Taiwan, South Korea, China and most of the Caribbean and South American nations (as amended, the “Baxalta Agreement”). On September 26, 2016, Shire issued a termination notice of the Baxalta Agreement, in its entirety as part of its strategic portfolio review after its acquisition of Baxalta.

Under the Baxalta Agreement, the Company received an upfront payment of $30.0 million and was eligible to receive up to $335.3 million in contingent payments. If the Company commercialized CHS-0214, its etanercept biosimilar product, in the United States, the Company would have been required to refund a portion of the milestone payments received from Baxalta. Therefore, the Company recorded the portion of the contingent payments that contained the claw-back feature as a liability and would have continued to record such liability until the earlier of: (1) expiration of the license agreement pursuant to its terms in August 2023, (2) the earlier termination of the license agreement, or (3) the determination, pursuant to the terms of the license agreement, of the third party to commercialize CHS-0214 in the U.S. This liability was included in the contingent liability to collaborator on the condensed consolidated balance sheet.

Upon the termination of the Baxalta Agreement, the Company regained from Shire all development and commercial rights previously licensed under the CHS-0214. There were no further contractual obligations. Therefore, the Company recognized the outstanding balances of deferred revenue of $85.8 million and contingent liability to collaborator of $76.7 million as revenue in its condensed consolidated statements of operations for the three months ended September 30, 2016.

As of December 31, 2015, $92.0 million of revenue was deferred under the arrangements with Baxalta, of which $48.0 million was included in current liabilities and $44.0 million was included in non-current liabilities in the condensed consolidated balance sheet. As of December 31, 2015, $66.3 million was recorded as contingent liability to collaborator in the condensed consolidated balance sheet due to the potential refund to Baxalta.

Convertible Notes

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Convertible Notes

6.	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 September 30, 2016, 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 September 30, 2016 (in thousands):

	September 30,
	2016
Principal amount of the Convertible Notes	$	81,750
Unamortized debt discount and debt issuance costs		(6,797	)
Convertible Notes	$	74,953

Principal amount of the Convertible Notes - related parties	$	27,250
Unamortized debt discount and debt issuance costs - related parties		(2,265	)
Convertible Notes - related parties	$	24,985
Total Convertible Notes	$	99,938

The following table presents the components of interest expense for the three and nine month periods ended September 30, 2016 (in thousands):

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2016		2016
Stated coupon interest	$	1,538	$	3,621
Accretion of debt discount and debt issuance costs		233		542
Interest expense	$	1,771	$	4,163
Stated coupon interest - related parties	$	512	$	1,207
Accretion of debt discount and debt issuance costs - related parties		78		181
Interest expense - related parties	$	590	$	1,388
Total interest expense	$	2,361	$	5,551

The remaining unamortized debt discount and debt offering costs related to the Company’s Convertible Notes of approximately $9.1 million as of September 30, 2016, will be amortized using the effective interest rate over the remaining term of the Convertible Notes of 5.50 years. The annual effective interest rate is 9.48% for the Convertible Notes.

Future payments on the Convertible Notes as of September 30, 2016 are as follows (in thousands):

Year ending December 31,
Remainder of 2016	$	2,050
2017		8,200
2018		8,200
2019		8,200
2020		8,200
2021 and thereafter		119,250
Total minimum payments		154,100
Less amount representing interest		(45,100	)
Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on Convertible Notes		(9,062	)
Net carrying amount of Convertible Notes	$	99,938

Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

7.	Commitments and Contingencies

Purchase Commitments

The Company enters into contracts in the normal course of business with contract research organizations for preclinical studies and clinical trials and contract manufacturing organizations (“CMOs”) for the manufacture of clinical trial materials. As of September 30, 2016, the Company had a commitment of $14.5 million with CMOs for the manufacture of clinical trial material due within a year.

Facility Leases

The Company leases office spaces for its corporate headquarters in Redwood City, California and for laboratory facilities in Camarillo, California under operating lease agreements. On September 21, 2016, the Company entered into the Second Amendment (the “Second Amendment”) to its existing corporate headquarters with its current landlord to lease additional office space of approximately 12,809 square feet such that the total headquarters lease space is approximately 40,341 square feet (“Combined Lease Space”). The Second Amendment commenced on October 24, 2016, and ends on November 30, 2022, which coincides with the original lease termination date. The Combined Lease Space contains a one-time option to extend the lease term for five years.

The Second Amendment provides for annual base rent on the additional office space of approximately $0.75 million in the first year of the Second Amendment term, which increases on an annual basis up to approximately $0.87 million for the final year of the Second Amendment term and provides for certain limited rent abatements on the additional office space. The Company is also entitled to a one-time improvement allowance of approximately $0.2 million that can be applied towards specified items, including tenant improvement work and base rent.

Rent expense is recognized on a straight-line basis over the term of the leases and accordingly, the Company records the difference between cash rent payments and the recognition of rent expense as deferred rent liability.

The future minimum lease payments for all of our lease facilities as of September 31, 2016 are as follows (in thousands):

Year ending December 31,
Remainder of 2016	$	439
2017		1,891
2018		2,462
2019		2,518
2020		2,595
2021 and thereafter		5,190
Total minimum lease payments		15,095

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. The Company is subject to one claim and consequently recorded a related liability of $50,000 in 2015. The claim was settled and agreed to by both parties in July 2016.

Common Stock and Stock-Based Compensation

9 Months Ended

Sep. 30, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Common Stock and Stock-Based Compensation

8.	Common Stock and Stock-Based Compensation

Common Stock

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. In May and June 2016, the Company issued and sold 4,025,000 shares of common stock at a price of $18.00 per share. The Company received total gross proceeds from the offering of $72.5 million. After deducting underwriting discounts and commissions of $3.0 million and offering expense of $0.5 million, the net proceeds were $69.0 million.

2016 Employment Commencement Incentive Plan

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. The Company reserved for future issuance under the 2016 Plan a total of 1,000,000 shares of its common stock for new employees. The 2016 Plan does not provide for any annual increases in the number of shares available. As of September 30, 2016, there were 307,000 options issued and outstanding under the 2016 Plan.

Stock-Based Compensation

During 2010 and 2011, the Company issued shares of restricted common stock to its founders under our founders’ shares agreements (such shares, the “Founders’ Shares”). As of September 30, 2016, all shares were fully vested and there were no shares subject to repurchase. The Company recognized stock-based compensation expense within its condensed consolidated statement of operations of $0 and $9,000 for the three and nine months ended September 30, 2015, respectively, and recognized no expense in 2016 related to shares of common stock granted pursuant to the Founders’ Shares agreements.

The stock-based compensation expense recorded related to options granted to employees and nonemployees was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Research and development	$	4,399	$	2,146	$	9,842	$	5,602
General and administrative		3,871		2,598		9,894		5,936
	$	8,270	$	4,744	$	19,736	$	11,538

Net Income (Loss) Per Share Attributable to Coherus

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Net Income (Loss) Per Share Attributable to Coherus

9.	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 Coherus (in thousands, except share and per share data):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016		2015			2016			2015
Basic net income (loss) per share
Numerator:
Net income (loss) attributable to Coherus	$	83,939	$	(71,334	)	$	(51,416	)	$	(170,869	)
Denominator:
Weighted-average common shares outstanding		43,469,986		38,426,734			41,096,783			36,515,581
Less: weighted-average unvested common shares subject to repurchase (1)		—		—			—			(4,825	)
Denominator for basic net income (loss) per share attributable to Coherus		43,469,986		38,426,734			41,096,783			36,510,756
Basic net income (loss) per share attributable to Coherus	$	1.93	$	(1.86	)	$	(1.25	)	$	(4.68	)
Diluted net income (loss) per share
Numerator:
Net income (loss) attributable to Coherus	$	83,939	$	(71,334	)	$	(51,416	)	$	(170,869	)
Add: interest expense on convertible debt, net of tax		2,361		—			—			—
Adjusted net income (loss) attributable to Coherus	$	86,300	$	(71,334	)	$	(51,416	)	$	(170,869	)
Denominator:
Denominator for basic net income (loss) per share attributable to Coherus		43,469,986		38,426,734			41,096,783			36,510,756
Add effect of potential dilutive securities:
Stock options		3,637,441		—			—			—
Convertible debt		4,473,871		—			—			—
Denominator for diluted net income (loss) per share attributable to Coherus		51,581,298		38,426,734			41,096,783			36,510,756
Diluted net income (loss) per share attributable to Coherus	$	1.67	$	(1.86	)	$	(1.25	)	$	(4.68	)

(1)	Shares were excluded as such shares represent restricted common stock granted pursuant to the Founders’ Shares agreements which vest contingently upon the holders’ continued services to the Company.

The following outstanding potentially dilutive securities consisting of stock options and the shares issuable upon conversion of the Convertible Notes are considered to be potential shares but are excluded from the calculation of diluted net loss per share because their effect would be antidilutive:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Stock options		4,989,524		7,924,249		10,020,561		7,924,249
Shares issuable upon conversion of Convertible Notes		—		—		4,473,871		—
Total		4,989,524		7,924,249		14,494,432		7,924,249

Related Party Transactions

9 Months Ended

Sep. 30, 2016

Related Party Transactions

10.	Related Party Transactions

Transactions Associated with Medpace Agreement

One member of the Company’s board of directors is also the chief executive officer of Medpace. As such, Medpace was deemed to be a related party. As September 30, 2016, the Company had $5.8 million in prepaid assets (prepaid clinical, material, manufacturing and other–related parties), $2.9 million in accounts payable–related parties, and $6.0 million in accrued and other liabilities (accrued clinical, manufacturing and other–related parties), all reflected on the Company’s condensed consolidated balance sheet associated with Medpace. As of December 31, 2015, the Company had $10.9 million in prepaid assets (prepaid clinical, material, manufacturing and other–related parties), $3.5 million in accounts payable–related parties, and $6.1 million in accrued and other liabilities (accrued clinical, manufacturing and other–related parties), all reflected on the Company’s consolidated balance sheet associated with Medpace. The Company recognized $7.9 million and $10.0 million during the three months ended September 30, 2016 and 2015, respectively, and $31.9 million and $33.7 million during the nine months ended September 30, 2016 and 2015, respectively, for services rendered by Medpace within research and development expense in the condensed consolidated statements of operations.

Recruiting Services

One member of the Company’s board of directors is a partner of a company that provided recruiting services to the Company. As of September 30, 2016 and December 31, 2015, the Company did not have any related party balances in the Company’s condensed consolidated balance sheet related to recruiting services. The Company recorded in research and development expense in its condensed consolidated statements of operations, $0 for both three month periods ended September 30, 2016 and 2015, and $131,000 and $258,000 for the nine months ended September 30, 2016 and 2015, respectively, for services rendered by the recruiting company. The Company recorded in general and administrative expense in its condensed consolidated statements of operations, $30,000 and $168,000 for the three months ended September 30, 2016 and 2015, respectively, and $80,000 and $511,000 for the nine months ended September 30, 2016 and 2015, respectively, for services rendered by the recruiting company.

Convertible Notes

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 6 for related party disclosure).

Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

11.	Subsequent Events

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 will act as its sales agent (the “ATM Offering Program”). Cowen is 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 has no obligation to sell any shares under the Sales Agreement, and may at any time suspend solicitation and offers under the Sales Agreement. The shares will be 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.

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

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Unaudited Condensed Consolidated Financial Statements

Use of Estimates

Foreign Currency

Segment Reporting and Customer Concentration

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
United States	$	162,537	$	6,807	$	188,292	$	18,599
Rest of world		298		360		970		1,244
Total revenue	$	162,835	$	7,167	$	189,262	$	19,843

Customers whose collaboration and license revenue accounted for 10% or more of total revenues were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Baxalta		99.8	%		95.0	%		99.5	%		93.7	%

Revenue Recognition

Comprehensive Income (Loss)

Net Income (Loss) per Share Attributable to Coherus

Recent Accounting Pronouncements

Fair Value Measurements

Level 1 — Quoted prices in active markets for identical 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.

In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3.

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

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Summary of Revenue by Geographical Region

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
United States	$	162,537	$	6,807	$	188,292	$	18,599
Rest of world		298		360		970		1,244
Total revenue	$	162,835	$	7,167	$	189,262	$	19,843

Summary of Customers Revenue Accounted for 10% or More of Total Revenue

Customers whose collaboration and license revenue accounted for 10% or more of total revenues were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Baxalta		99.8	%		95.0	%		99.5	%		93.7	%

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

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
	September 30, 2016
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	128,870	$	128,870	$	—	$	—
Restricted cash (money market funds)		845		845		—		—
Total financial assets	$	129,715	$	129,715	$	—	$	—
Liabilities:
Contingent consideration	$	4,990	$	—	$	—	$	4,990

	Fair Value Measurements
	December 31, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	157,784	$	157,784	$	—	$	—
Restricted cash (money market funds)		845		845		—		—
Total financial assets	$	158,629	$	158,629	$	—	$	—
Liabilities:
Contingent consideration	$	1,245	$	—	$	—	$	1,245

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, 2015	$	1,245
Change in fair value of the contingent consideration liability		3,745
Balance as of September 30, 2016	$	4,990

Balance Sheet Components (Tables)

9 Months Ended

Sep. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Prepaid Assets

Prepaid assets are as follows (in thousands):

	September 30,		December 31,
	2016		2015
Prepaid clinical, material, manufacturing and other - related parties (see Note 10)	$	5,771	$	10,901
Prepaid clinical, material and manufacturing		9,501		21,191
Prepaid other		1,373		2,651
Prepaid assets	$	16,645	$	34,743

Schedule of Property and Equipment, Net

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

	September 30,			December 31,
	2016			2015
Machinery and equipment	$	9,815		$	7,809
Computer equipment and software		1,381			1,276
Furniture and fixtures		637			596
Leasehold improvements		4,092			4,343
Total property and equipment		15,925			14,024
Accumulated depreciation and amortization		(5,250	)		(3,520	)
Property and equipment, net	$	10,675		$	10,504

Schedule of Accrued Liabilities

Accrued liabilities are as follows (in thousands):

	September 30,		December 31,
	2016		2015
Accrued clinical, manufacturing and other - related parties (See Note 10)	$	6,041	$	6,122
Accrued clinical and manufacturing		10,725		11,681
Accrued compensation		5,505		4,666
Accrued other		2,604		1,664
Accrued liabilities	$	24,875	$	24,133

Collaboration and License Agreements (Tables)

9 Months Ended

Sep. 30, 2016

Collaboration And License Agreements [Abstract]

Schedule of Revenue Related to Collaboration and License Agreements

The Company recognized revenue related to the collaboration and license agreements for the periods presented as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Baxalta	$	162,537	$	6,807	$	188,292	$	18,599
Daiichi Sankyo		298		360		970		1,244
Total collaboration and license revenue	$	162,835	$	7,167	$	189,262	$	19,843

Convertible Notes (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Components of Convertible Notes

The following table summarizes information about the components of the Convertible Notes as of September 30, 2016 (in thousands):

	September 30,
	2016
Principal amount of the Convertible Notes	$	81,750
Unamortized debt discount and debt issuance costs		(6,797	)
Convertible Notes	$	74,953

Principal amount of the Convertible Notes - related parties	$	27,250
Unamortized debt discount and debt issuance costs - related parties		(2,265	)
Convertible Notes - related parties	$	24,985
Total Convertible Notes	$	99,938

Components of Interest Expense

The following table presents the components of interest expense for the three and nine month periods ended September 30, 2016 (in thousands):

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2016		2016
Stated coupon interest	$	1,538	$	3,621
Accretion of debt discount and debt issuance costs		233		542
Interest expense	$	1,771	$	4,163
Stated coupon interest - related parties	$	512	$	1,207
Accretion of debt discount and debt issuance costs - related parties		78		181
Interest expense - related parties	$	590	$	1,388
Total interest expense	$	2,361	$	5,551

Schedule of Future Payments on the Convertible Notes

Future payments on the Convertible Notes as of September 30, 2016 are as follows (in thousands):

Year ending December 31,
Remainder of 2016	$	2,050
2017		8,200
2018		8,200
2019		8,200
2020		8,200
2021 and thereafter		119,250
Total minimum payments		154,100
Less amount representing interest		(45,100	)
Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on Convertible Notes		(9,062	)
Net carrying amount of Convertible Notes	$	99,938

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments for all the Company's Lease Facilities

The future minimum lease payments for all of our lease facilities as of September 31, 2016 are as follows (in thousands):

Year ending December 31,
Remainder of 2016	$	439
2017		1,891
2018		2,462
2019		2,518
2020		2,595
2021 and thereafter		5,190
Total minimum lease payments		15,095

Common Stock and Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2016

Employees And Nonemployees Stock Option

Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]

Schedule of Stock-Based Compensation Expense

The stock-based compensation expense recorded related to options granted to employees and nonemployees was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Research and development	$	4,399	$	2,146	$	9,842	$	5,602
General and administrative		3,871		2,598		9,894		5,936
	$	8,270	$	4,744	$	19,736	$	11,538

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

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted 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 Coherus (in thousands, except share and per share data):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016		2015			2016			2015
Basic net income (loss) per share
Numerator:
Net income (loss) attributable to Coherus	$	83,939	$	(71,334	)	$	(51,416	)	$	(170,869	)
Denominator:
Weighted-average common shares outstanding		43,469,986		38,426,734			41,096,783			36,515,581
Less: weighted-average unvested common shares subject to repurchase (1)		—		—			—			(4,825	)
Denominator for basic net income (loss) per share attributable to Coherus		43,469,986		38,426,734			41,096,783			36,510,756
Basic net income (loss) per share attributable to Coherus	$	1.93	$	(1.86	)	$	(1.25	)	$	(4.68	)
Diluted net income (loss) per share
Numerator:
Net income (loss) attributable to Coherus	$	83,939	$	(71,334	)	$	(51,416	)	$	(170,869	)
Add: interest expense on convertible debt, net of tax		2,361		—			—			—
Adjusted net income (loss) attributable to Coherus	$	86,300	$	(71,334	)	$	(51,416	)	$	(170,869	)
Denominator:
Denominator for basic net income (loss) per share attributable to Coherus		43,469,986		38,426,734			41,096,783			36,510,756
Add effect of potential dilutive securities:
Stock options		3,637,441		—			—			—
Convertible debt		4,473,871		—			—			—
Denominator for diluted net income (loss) per share attributable to Coherus		51,581,298		38,426,734			41,096,783			36,510,756
Diluted net income (loss) per share attributable to Coherus	$	1.67	$	(1.86	)	$	(1.25	)	$	(4.68	)

(1)	Shares were excluded as such shares represent restricted common stock granted pursuant to the Founders’ Shares agreements which vest contingently upon the holders’ continued services to the Company.

Outstanding Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Stock options		4,989,524		7,924,249		10,020,561		7,924,249
Shares issuable upon conversion of Convertible Notes		—		—		4,473,871		—
Total		4,989,524		7,924,249		14,494,432		7,924,249

Organization and Operations - Additional Information (Details)

2 Months Ended

9 Months Ended

Feb. 29, 2016

USD ($)

Jun. 30, 2016

USD ($)

$ / shares

Sep. 30, 2016

USD ($)

Segments

Nov. 30, 2016

USD ($)

Oct. 28, 2016

USD ($)

Dec. 31, 2015

USD ($)

^[1]

Sep. 30, 2015

USD ($)

Dec. 31, 2014

USD ($)

Organization And Operations [Line Items]

Number of operating segments | Segments

Accumulated deficit

$ 461,401,000

$ 409,985,000

Cash and cash equivalents

$ 159,677,000

$ 158,226,000

$ 153,691,000

$ 150,392,000

Common stock, shares issued and sold | shares

4,025,000

Share price | $ / shares

$ 18.00

Common stock, net proceeds

$ 69,000,000

8.2% Senior Convertible Notes Due 2022

Organization And Operations [Line Items]

Aggregate principal amount

$ 100,000,000

Convertible notes, interest rate

8.20%

Debt instrument maturity date

Mar. 31, 2022

Subsequent Event | Cowen and Company LLC | At-the-Market Equity Offering Program

Organization And Operations [Line Items]

Maximum amount of sales that agent may sell in shares of its common stock

$ 100,000,000

[1]	The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016.

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) Segments	Sep. 30, 2015 USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Foreign exchange loss \| $	$ 45,000	$ 123,000	$ 401,000	$ 162,000
Number of reportable segment			1
Number of operating segments			1
RUSSIA \| Coherus Intermediate Corp, InteKrin Therapeutics, Inc.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Controlling interest, ownership percentage by parent	82.50%		82.50%

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Revenue by Geographical Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 162,835	$ 7,167	$ 189,262	$ 19,843
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	162,537	6,807	188,292	18,599
Rest of World
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 298	$ 360	$ 970	$ 1,244

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Customers Revenue Accounted for 10% or More of Total Revenue (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Collaboration and License Revenue \| Customer Concentration Risk \| Baxalta
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Percentage of total revenues by single customer	99.80%	95.00%	99.50%	93.70%

Fair Value Measurements - Additional Information (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 29, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Sep. 29, 2016	Mar. 06, 2015
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 of contingent consideration				3,745,000	$ 4,414,000
8.2% Senior Convertible Notes Due 2022
Fair Value Disclosures [Line Items]
Aggregate principal amount	$ 100,000,000
Convertible notes, interest rate	8.20%
Debt instrument maturity date	Mar. 31, 2022
Other Income (Expense), Net
Fair Value Disclosures [Line Items]
Remeasurement of fair-value of contingent consideration		$ 1,600,000	$ (135,000)	(3,700,000)	$ (275,000)
InteKrin Therapeutics Inc
Fair Value Disclosures [Line Items]
Additional fair value of earn-out payment to other expense								$ 4,100,000
Level 3 \| 8.2% Senior Convertible Notes Due 2022
Fair Value Disclosures [Line Items]
Debt instrument fair value		$ 164,500,000		$ 164,500,000
Fair Value Measurements Recurring Basis \| Level 3 \| Contingent Consideration
Fair Value Disclosures [Line Items]
Discount rate				25.00%
Counterparty credit risk given the cash payment				8.00%
Expected probability of compound transaction payment occurrence		33.00%		33.00%			10.00%
Increase (decrease) in expected probability of compound transaction payment occurrence				1.00%
Estimated fair value fluctuation of Compound Transaction Payment				$ 200,000
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 - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value Measurements Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 129,715	$ 158,629
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	4,990	1,245
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	128,870	157,784
Restricted Cash (Money Market Funds)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	845	845
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	129,715	158,629
Level 1 \| Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	128,870	157,784
Level 1 \| Restricted Cash (Money Market Funds)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	845	845
Level 3 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	$ 4,990	$ 1,245

Fair Value Measurements - Summary of Changes in the Estimated Fair Value of Contingent Consideration (Details) - Contingent Consideration $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 1,245
Change in fair value of the contingent consideration liability	3,745
Ending balance	$ 4,990

Balance Sheet Components - Schedule of Prepaid Assets (Details) - USD ($)
$ in Thousands

Sep. 30, 2016

Dec. 31, 2015

Clinical Material Manufacturing And Other Related Parties

$ 16,645

$ 34,743

^[1]

Prepaid Clinical, Material and Manufacturing

5,771

10,901

9,501

21,191

Prepaid Other

$ 1,373

$ 2,651

[1]	The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016.

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands

Sep. 30, 2016

Dec. 31, 2015

Accumulated depreciation and amortization

$ 15,925

$ 14,024

(5,250)

(3,520)

Property and equipment, net

10,675

10,504

^[1]

Machinery and Equipment

Computer Equipment and Software

9,815

7,809

1,381

1,276

Furniture and Fixtures

637

596

Leasehold Improvements

Accrued clinical, manufacturing and other - related parties

$ 4,092

$ 4,343

[1]	The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016.

Balance Sheet Components - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property Plant And Equipment [Abstract]
Depreciation and amortization	$ 753,000	$ 636,000	$ 2,199,000	$ 1,268,000

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands

Sep. 30, 2016

Dec. 31, 2015

Payables And Accruals [Abstract]

$ 6,041

$ 6,122

Accrued clinical and manufacturing

10,725

11,681

Accrued compensation

5,505

4,666

Accrued other

2,604

1,664

Accrued liabilities

$ 24,875

$ 24,133

^[1]

[1]	The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016.

Collaboration and License Agreements - Schedule of Revenue Related to Collaboration and License Agreements (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaboration and license revenue		$ 162,835	$ 7,167	$ 189,262	$ 19,843
Baxalta License Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaboration and license revenue	$ 30,000	162,537	6,807	188,292	18,599
Daiichi Sankyo License Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaboration and license revenue		$ 298	$ 360	$ 970	$ 1,244

Collaboration and License Agreements - Additional Information (Details) - USD ($)

1 Months Ended

3 Months Ended

9 Months Ended

Jul. 31, 2016

Jun. 30, 2015

Jan. 31, 2014

Aug. 31, 2013

Sep. 30, 2016

Sep. 30, 2015

Sep. 30, 2016

Sep. 30, 2015

Dec. 31, 2015

Jan. 31, 2012

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Deferred revenue, current

$ 1,377,000

$ 49,621,000

^[1]

Collaboration and license revenue

595,000

45,338,000

^[1]

162,835,000

$ 7,167,000

189,262,000

$ 19,843,000

Daiichi Sankyo License Agreement

^[1]

66,255,000

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Minimum percentage of clinical trial cost

1,800,000

2,800,000

$ 10,000,000

20.00%

Reimbursement of past cost incurred and to be incurred

$ 1,900,000

Deferred revenue, current

1,200,000

1,500,000

Collaboration and license revenue

600,000

1,300,000

Research and development

3,100,000

4,000,000

7,100,000

7,900,000

298,000

360,000

$ 970,000

1,244,000

Baxalta License Agreement

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Deferred revenue, current

92,000,000

48,000,000

Business acquisition date

44,000,000

Jun. 03, 2016

Collaboration and license revenue

$ 30,000,000

162,537,000

$ 6,807,000

$ 188,292,000

$ 18,599,000

Deferred revenue recognized

85,800,000

Collaboration Agreement Contingent Liability Noncurrent Recognized

76,700,000

Contractual obligations

$ 0

Baxalta License Agreement | Maximum

$ 66,300,000

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Contingent payment receivable

$ 335,300,000

Baxalta Second Amendment

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Expiration of license agreement

2023-08

[1]	The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated balance sheet included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2016.

Convertible Notes - Additional Information (Details)		9 Months Ended
Convertible Notes - Additional Information (Details)	Feb. 29, 2016 USD ($) d $ / shares shares	Sep. 30, 2016 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of convertible notes		$ 75,000,000
KKR Member
Debt Instrument [Line Items]
Aggregate principal amount	$ 20,000,000
MX II Member
Debt Instrument [Line Items]
Aggregate principal amount	4,000,000
KMGCP Member
Debt Instrument [Line Items]
Aggregate principal amount	1,000,000
HRP III Member
Debt Instrument [Line Items]
Aggregate principal amount	75,000,000
8.2% Senior Convertible Notes Due 2022
Debt Instrument [Line Items]
Aggregate principal amount	$ 100,000,000
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	30 days
Percentage to pay in cash of the par value of notes	109.00%
Minimum order amount to be settled		$ 10,000,000
Minimum borrowings for indebtedness defaulters		$ 10,000,000
Convertible notes, covenant compliance		As of September 30, 2016, the Company was in full compliance with these covenants and there were no events of default under the Convertible Notes.
Unamortized debt discount and debt issuance costs on Convertible Notes		$ 9,062,000
Amortized effective interest rate convertible notes period		5 years 6 months
Convertible notes, effective interest rate		9.48%
8.2% Senior Convertible Notes Due 2022 \| Maximum
Debt Instrument [Line Items]
Additional interest to be accrued upon failure of registration or reporting requirements	0.50%

Convertible Notes - Components of Convertible Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Feb. 29, 2016
Debt Instrument [Line Items]
Convertible Notes	$ 74,953
Convertible Notes - related parties	24,985
8.2% Senior Convertible Notes Due 2022
Debt Instrument [Line Items]
Principal amount of the Convertible Notes		$ 100,000
Unamortized debt discount and debt issuance costs	(9,062)
Total Convertible Notes	99,938
8.2% Senior Convertible Notes Due 2022 \| Related Party Debt
Debt Instrument [Line Items]
Principal amount of the Convertible Notes	27,250
Unamortized debt discount and debt issuance costs	(2,265)
Convertible Notes - related parties	24,985
8.2% Senior Convertible Notes Due 2022 \| Parent Company
Debt Instrument [Line Items]
Principal amount of the Convertible Notes	81,750
Unamortized debt discount and debt issuance costs	(6,797)
Convertible Notes	$ 74,953

Convertible Notes - Components of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Accretion of debt discount and debt issuance costs			$ 723	$ (38)
Interest expense	$ 590	$ 0	1,388	0
Total interest expense	2,420	$ 33	5,611	$ 33
8.2% Senior Convertible Notes Due 2022
Debt Instrument [Line Items]
Total interest expense	2,361		5,551
8.2% Senior Convertible Notes Due 2022 \| Related Party Debt
Debt Instrument [Line Items]
Stated coupon interest	512		1,207
Accretion of debt discount and debt issuance costs	78		181
Interest expense	590		1,388
8.2% Senior Convertible Notes Due 2022 \| Parent Company
Debt Instrument [Line Items]
Stated coupon interest	1,538		3,621
Accretion of debt discount and debt issuance costs	233		542
Interest expense	$ 1,771		$ 4,163

Convertible Notes - Schedule of Future Payments on the Convertible Notes (Details) - 8.2% Senior Convertible Notes Due 2022 $ in Thousands	Sep. 30, 2016 USD ($)
Debt Instrument [Line Items]
Remainder of 2016	$ 2,050
2017	8,200
2018	8,200
2019	8,200
2020	8,200
2021 and thereafter	119,250
Total minimum payments	154,100
Less amount representing interest	(45,100)
Convertible Notes, principal amount	109,000
Less debt discount and debt issuance costs on Convertible Notes	(9,062)
Net carrying amount of Convertible Notes	$ 99,938

Commitments and Contingencies - Additional Information (Details)	Sep. 21, 2016 USD ($) ft²	Sep. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Purchase Commitment Excluding Longterm Commitment [Line Items]
Area of office space leased \| ft²	40,341
Guarantor liability			$ 50,000
Second Amendment Agreement
Purchase Commitment Excluding Longterm Commitment [Line Items]
Area of office space leased \| ft²	12,809
Annual base rent for the first year of additional term	$ 750,000
One-time improvement allowance	200,000
Second Amendment Agreement \| Maximum
Purchase Commitment Excluding Longterm Commitment [Line Items]
Rent for the final year of additional term	$ 870,000
Corporate Headquarters Lease
Purchase Commitment Excluding Longterm Commitment [Line Items]
Lease expiration date	Nov. 30, 2022
Lease Commencement Date	Oct. 24, 2016
Leases extended expiration period	5 years
CMOs
Purchase Commitment Excluding Longterm Commitment [Line Items]
Contractual commitment due within a year		$ 14,500,000

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for all the Company's Lease Facilities (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2016	$ 439
2017	1,891
2018	2,462
2019	2,518
2020	2,595
2021 and thereafter	5,190
Total minimum lease payments	$ 15,095

Common Stock and Stock-Based Compensation - Additional Information (Details) - USD ($)	2 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock, shares issued and sold	4,025,000
Share price	$ 18.00
Gross proceeds from issuance of common stock	$ 72,500,000
Underwriting discounts and commissions	3,000,000
Offering expense	500,000
Common stock, net proceeds	$ 69,000,000
Restricted Common Stock (Founders Shares)
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock shares subject to repurchase		0		0
Stock-based compensation expense		$ 0	$ 0	$ 0	$ 9,000
2016 Employment Commencement Incentive Plan
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock reserved for future issuance	1,000,000
Options issued				307,000
Options outstanding		307,000		307,000

Common Stock and Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Related to Options (Details) - Employees And Nonemployees Stock Option - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 8,270	$ 4,744	$ 19,736	$ 11,538
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	4,399	2,146	9,842	5,602
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 3,871	$ 2,598	$ 9,894	$ 5,936

Net Income (Loss) Per Share Attributable to Coherus - Computation of Basic and Diluted Net Income (Loss) Per Share Attributable to Coherus (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net income (loss) attributable to Coherus	$ 83,939	$ (71,334)	$ (51,416)	$ (170,869)
Denominator:
Weighted-average common shares outstanding	43,469,986	38,426,734	41,096,783	36,515,581
Less: weighted-average unvested common shares subject to repurchase				(4,825)
Denominator for basic net income (loss) per share attributable to Coherus	43,469,986	38,426,734	41,096,783	36,510,756
Basic net income (loss) per share attributable to Coherus	$ 1.93	$ (1.86)	$ (1.25)	$ (4.68)
Denominator for basic net income (loss) per share attributable to Coherus	43,469,986	38,426,734	41,096,783	36,510,756
Numerator:
Net income (loss) attributable to Coherus	$ 83,939	$ (71,334)	$ (51,416)	$ (170,869)
Add: interest expense on convertible debt, net of tax	2,361
Adjusted net income (loss) attributable to Coherus	$ 86,300	$ (71,334)	$ (51,416)	$ (170,869)
Add effect of potential dilutive securities:
Stock options	3,637,441
Convertible debt	4,473,871
Denominator for diluted net income (loss) per share attributable to Coherus	51,581,298	38,426,734	41,096,783	36,510,756
Diluted net income (loss) per share attributable to Coherus	$ 1.67	$ (1.86)	$ (1.25)	$ (4.68)

Net Income (Loss) Per Share Attributable to Coherus - Outstanding Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	4,989,524	7,924,249	14,494,432	7,924,249
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	4,989,524	7,924,249	10,020,561	7,924,249
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

Related Party Transactions - Additional Information (Details) - USD ($)

3 Months Ended

9 Months Ended

Sep. 30, 2016

Sep. 30, 2015

Sep. 30, 2016

Sep. 30, 2015

Feb. 29, 2016

Dec. 31, 2015

$ 16,645,000

$ 34,743,000

^[1]

Research and development expense

2,860,000

3,548,000

^[1]

64,573,000

$ 68,218,000

195,430,000

$ 161,629,000

General and administrative expenses from transactions with related party

30,000

168,000

80,000

511,000

Medpace Inc

Research and development expense

2,900,000

3,500,000

7,900,000

10,000,000

31,900,000

33,700,000

Medpace Inc | Clinical Material Manufacturing And Other Related Parties