On Monday, Baird adjusted its outlook on Coherus Biosciences (NASDAQ:CHRS) shares, reducing the price target to $8 from the previous $9, while maintaining an Outperform rating on the stock.
The revision follows Coherus Biosciences' recent announcement of a definitive agreement to sell the rights to Yusimry, a biosimilar to Humira, for a sum of $40 million in cash.
The sale is seen as consistent with Coherus's strategic shift towards emphasizing its oncology pipeline. Baird views the cash deal as a positive move, considering the current competitive landscape of the Humira biosimilar market. The analyst believes that the transaction represents a fair value and aligns with the company's broader objectives.
According to Baird, the divestiture of Yusimry is part of a series of actions by Coherus to strengthen its financial position. This step is anticipated to contribute to the company's ability to invest and advance in the field of oncology, an area where Coherus is seeking to expand its presence.
The financial transaction is expected to provide Coherus with additional liquidity, which could be beneficial as the company continues to navigate the highly competitive and dynamic pharmaceutical industry. The focus on oncology could pave the way for future growth and development opportunities for Coherus.
In summary, Baird's updated price target reflects a slight decrease from its previous position but reaffirms the firm's positive outlook on Coherus Biosciences' stock. The sale of Yusimry is interpreted as a strategic move to reallocate resources and focus on the company's oncology pipeline, which is central to its long-term growth strategy.
In other recent news, Coherus Biosciences has been making notable strides in both its earnings and product pipeline. The biopharmaceutical company reported significant revenue growth in its first quarter 2024 earnings call, largely due to the US FDA approvals and market launches of Loqtorzi and the Udenyca on-body injector. These developments have been pivotal in driving the company's revenue growth and market share expansion.
TD Cowen has maintained its Buy rating for Coherus Biosciences, indicating confidence in the company's strategic direction and the anticipated success of its product pipeline.
The company's launch of Loqtorzi has been progressing well, and its pipeline products, including Casdozokitug, CHS-114, and CHS-1000, are being closely watched for their potential market impact.
Among these, Casdozo, an anti-IL-27 antibody, is considered a potential first-in-class treatment, with crucial clinical readouts expected over the next 12 to 18 months. If supportive, these readouts could unlock significant value for the company and its stakeholders. These are recent developments that underline Coherus Biosciences' commitment to innovation, strategic partnerships, and strengthening its financial position.
InvestingPro Insights
In light of Baird's recent price target adjustment for Coherus Biosciences (NASDAQ:CHRS), it's valuable to consider additional insights from InvestingPro. The company's market capitalization stands at $198.48 million, indicating a relatively small size within the biotech sector. With a significant revenue growth of 64.63% over the last twelve months as of Q1 2024, Coherus has shown its ability to increase sales. However, the company is facing challenges with profitability, as reflected in the negative P/E ratio of -3 and an adjusted P/E ratio of -1.12 for the same period.
InvestingPro Tips reveal that analysts are not expecting Coherus to be profitable this year, which aligns with the company's reported operating income margin of -53.33%. Additionally, the stock has experienced a substantial decline over the last six months, dropping by 48.05%. This may raise concerns about near-term financial stability and market sentiment. Despite these challenges, the company's strategic shift towards oncology could be a catalyst for future growth, which is a factor that investors may want to watch closely.
For those seeking a deeper analysis, InvestingPro offers additional tips on Coherus Biosciences, which can be accessed with the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription. There are 5 more InvestingPro Tips available that could provide further guidance on the potential investment opportunity in Coherus Biosciences.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.