Coherus Oncology (NASDAQ:CHRS) reported a strong second quarter, highlighting steady growth for its LOQTORZI treatment and a leaner operating structure following the divestiture of its UDENYCA franchise, as it prepares for major clinical data disclosures throughout the second half of 2026.
Advancing the Immuno-Oncology Pipeline
CEO Denny Lanfear emphasized that the company is currently in a phase of active clinical data generation. The development strategy is sharply focused on overcoming immune resistance in cancer, with a strategic emphasis on the durability of clinical benefits and patient selection through biomarker analysis.
Chief Medical Officer Dr. Rosh Dias confirmed that three pivotal studies have achieved full enrollment: the first-line hepatocellular carcinoma study of casdozokitug, and tagmokitug cohorts targeting head and neck squamous cell carcinoma and colorectal cancer.
The Role of Tagmokitug in Cancer Treatment
Tagmokitug, a selective CCR8 cytolytic antibody, is designed to deplete regulatory T cells (Tregs). Coherus is currently evaluating this candidate in combination with toripalimab across various tumor types to assess its efficacy.
In the 40-patient second-line head and neck squamous cell carcinoma study, initial results are promising. Dr. Dias noted an “acceptable and manageable” safety profile for the combination therapy. While early data suggest higher activity in HPV-positive patients and those with higher tumor immune regulatory index (TIRI) scores, the company urges caution, as these findings are based on a small, preliminary sample size.
Biomarkers and Upcoming Clinical Data
Chief Scientific and Development Officer Dr. Theresa LaVallee stated that the TIRI score is a vital tool for identifying the immune context where patients are most likely to benefit from tagmokitug. The company plans a formal data disclosure for the head and neck cohort in October.
Additional data readouts are expected later this year, including results from the 40-patient upper gastrointestinal adenocarcinoma cohort and the initial 20-patient colorectal cancer group. Furthermore, a new protocol is slated for the fall, exploring tagmokitug in combination with Johnson & Johnson’s pasritamig for metastatic castration-resistant prostate cancer.
Regarding the hepatocellular carcinoma study, Coherus expects initial data in the fourth quarter. Dr. Dias hinted that the company may not require formal overall survival endpoints to justify advancing the program into Phase III, instead focusing on response rates, durability, and biomarker measurements.
Commercial Performance of LOQTORZI
Commercial momentum for LOQTORZI remains robust. Chief Commercial Officer Sameer Goregaoker reported Q2 net sales of $13.6 million, a 15% increase over the previous quarter. The company achieved its highest number of new patient starts since the treatment’s launch, with demand returning to a healthy 10% to 15% growth trajectory.
Coherus has maintained its full-year 2026 revenue guidance of $57 million to $62 million. The company is also addressing educational opportunities regarding dosing schedules, ensuring physicians optimize the application of LOQTORZI for better patient outcomes.
Financial Position and Operational Efficiency
CFO Bryan McMichael reported a significant reduction in expenditures, with R&D expenses dropping to $21.4 million and SG&A expenses falling to $21.0 million. This marks six consecutive quarters of declining SG&A costs, reflecting the company’s exit from the biosimilar business and a smaller, more focused headcount.
As of the end of the second quarter, Coherus held $105.3 million in cash, cash equivalents, and investments. Management believes this funding is sufficient to support the company through its key data readouts in 2026 and 2027, as transition service obligations continue to diminish.
