Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Coherus BioSciences Inc (CHRS, Financial) reported a 100% revenue growth for the Icca franchise since Q3 2023, reaching $66 million in revenue this quarter.
- The company successfully maintained its number two market position for Icca with nearly 30% market share.
- Coherus BioSciences Inc (CHRS) achieved a 54% increase in sales for its newly launched product, Latur, quarter over quarter.
- The company has made significant progress in expanding its supply chain capacity, with plans to double its labeling and packaging capacity to over 1 million units annually.
- Coherus BioSciences Inc (CHRS) reported a 20% improvement in quarterly gross profit compared to the previous year, driven by reduced expenditures and improved gross margins.
Negative Points
- There was a supply interruption for Icca, which impacted the company's ability to meet demand and affected Q4 sales projections.
- The resupply of Icca is expected to take several weeks, with full market availability anticipated by late November to early December.
- The company faced a temporary decline in overall franchise demand for Icca by 3% quarter over quarter due to the supply interruption.
- Coherus BioSciences Inc (CHRS) experienced a net loss of $10.8 million in Q3 2024, although this was an improvement from the previous year.
- The direct impact of the temporary supply interruption on net revenue will primarily be realized in Q4 earnings, with cash impact lagging to Q1 2025.
Q & A Highlights
Q: Can you provide expectations for the KDO and Tori trial in second-line lung cancer, given some recent competitive challenges?
A: Dennis Lanfear, CEO, and Rash Dias, Chief Medical Officer, explained that they are building on promising data, including rare monotherapy partial responses in PD-L1 refractory subjects. The bar for second-line treatment is low, with standard care being docetaxel alone, which has a low response rate. They plan to proceed with a phase three study if results are favorable.
Q: When will ICCA be available in the commercial channel again, and how have accounts managed without it?
A: Paul Reider, Chief Commercial Officer, stated that sales are expected to resume in late November to early December. Some accounts managed with existing stock, while others switched to alternative products. Many customers have assured they will return to ICCA once available.
Q: What is the expected response rate for the CZ Dozo trial in late-line lung cancer, and what benchmarks are you using?
A: Rash Dias, Chief Medical Officer, noted that the baseline response rate for docetaxel is around 12%. They are looking for an increment over this in their trial, which follows a standard Simon two-stage design.
Q: At what point do you expect to meet all demand for ICCA in the marketplace?
A: Dennis Lanfear, CEO, mentioned that they plan to produce 120,000 units in five weeks, which should meet several months' demand. They expect to have all products in the market within three to five weeks.
Q: Will there be an even restocking of ICCA formulations, or is there a priority?
A: Paul Reider, Chief Commercial Officer, indicated that restocking will follow a sequential flow, starting with the on-body device, followed by pre-filled syringe and auto-injector. Once initial restocking is complete, all formulations will be available in the channel.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
