Coherus Oncology (CHRS -2.21%), a biotechnology company focused on developing and commercializing innovative immuno-oncology therapies, reported earnings for Q2 2025 on August 7, 2025. The results showed GAAP revenue reached $10.3 million, surpassing consensus expectations of $9.35 million (GAAP), a 10.2% outperformance in GAAP revenue, largely attributed to LOQTORZI’s expanding market presence. However, the company reported a non-GAAP loss per share of $(0.34), falling short of the $(0.22) analyst consensus (Non-GAAP). The quarter highlighted strong top-line growth, with GAAP net revenue of $10.3 million, ongoing momentum in LOQTORZI sales, and increased financial flexibility from recent asset sales, but continuing operating losses and dependence on a single oncology product remain key points for stakeholders.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Business Overview and Strategic Priorities

Coherus Oncology is now a focused immuno-oncology company, following its divestment of earlier biosimilar franchises. The company’s current commercial engine is powered by LOQTORZI, its PD-1 immune checkpoint inhibitor, used for the treatment of nasopharyngeal carcinoma (NPC), a rare and aggressive cancer.

The main goal for the company is to drive adoption of LOQTORZI and to advance an internal pipeline of novel immuno-oncology drugs. Key success factors include increasing LOQTORZI penetration among oncologists, securing positive clinical data for its pipeline—including the CHS-114 (CCR8 cytolytic antibody) and casdozokitug (IL-27 antagonist) programs—and optimal use of capital from recent asset sales. As a pure-play oncology company, it faces both the upside of focused execution and the risk of relying heavily on a single approved product.

Quarterly Highlights: Commercial Progress and Financial Shifts

The period marked significant growth for LOQTORZI, the company’s PD-1 inhibitor for NPC, which generated $10.0 million in net revenue, reflecting a 36% increase from the previous quarter and a 163% increase from Q2 2024. This expansion was supported by higher patient demand and increased inventory restocking, buoyed by the product’s “preferred” status in updated treatment guidelines from the National Comprehensive Cancer Network (NCCN). Management specifically noted growing demand from head and neck cancer specialists, yet acknowledged that uptake, especially among community oncologists, remains a work in progress.

Despite the revenue milestone, profitability remains a challenge. Non-GAAP EPS of $(0.34) underperformed consensus by a wide margin, with ongoing research and development (R&D) and selling, general, and administrative (SG&A) expenses consuming most gross profits. GAAP net loss from continuing operations was $(44.9) million, a modest improvement compared to the prior year but indicative of ongoing negative operating leverage as the company scales commercial and clinical activities.

The financial profile saw a transformative boost following the April 2025 sale of the UDENYCA biosimilar franchise. Coherus received $483.4 million in upfront proceeds from the UDENYCA divestiture, using a large portion to pay down $230 million in convertible debt and buy out a royalty stream related to UDENYCA. These moves allowed cash, cash equivalents, and marketable securities to increase to $237.6 million as of June 30, 2025—though this strength is tempered by $96.8 million in UDENYCA-related accrued liabilities as of June 30, 2025, which remain to be settled over the next year. Annualized SG&A cost savings, driven by headcount reductions and a focus on oncology, are projected at approximately $25 million, with the full annualized savings benefit expected to be realized by year-end 2025, with most benefits still materializing in expenses.

On the clinical side, the company continues development of its pipeline. The CHS-114 antibody, targeting the CCR8 protein in the tumor microenvironment, showed early clinical activity, including a confirmed partial response in a difficult-to-treat patient, according to early clinical data presented at AACR 2025. Dose optimization and data-readout studies in both head and neck and gastric cancers are underway, with initial results expected in the first half of 2026. Similarly, casdozokitug is being tested in a randomized trial for liver cancer (hepatocellular carcinoma), with first data expected on the same timeline. Both drugs are being positioned both as standalone therapies and in combination with LOQTORZI to address a broader set of solid tumors beyond NPC.

Product and Pipeline Context

LOQTORZI is a programmed death receptor-1 (PD-1) inhibitor, a type of immunotherapy that helps the body’s immune system recognize and attack cancer cells. It is currently the only U.S. Food and Drug Administration (FDA)-approved therapy for all lines of NPC. This gives the drug a competitive position, but only within a relatively narrow patient base—approximately 2,000 treatable NPC patients annually in the U.S, according to company estimates.

CHS-114, an anti-CCR8 cytolytic antibody, is in Phase 1b development and has recently delivered first clinical evidence of activity, with biomarker and partial response data being reported in a head and neck cancer patient. Casdozokitug, an interleukin-27 (IL-27) antagonist, is advancing in Phase 2 trials for liver cancer. Both drugs are being positioned both as standalone therapies and in combination with LOQTORZI to address a broader set of solid tumors beyond NPC.

Looking Ahead: Guidance and Future Watchpoints

Management commented that the cash runway, strengthened by the UDENYCA divestiture, is expected to last through late 2026, comfortably spanning planned key clinical data readouts for the leading pipeline assets. SG&A costs are expected to remain between $90 million and $100 million in FY2025, with substantial ongoing investments in research and development for pipeline programs.

In the coming quarters, attention will focus on the continued adoption and sales momentum of LOQTORZI, especially among community oncologists and outside major academic centers, where entrenched use of other PD-1 inhibitors remains strong. The company also faces timing risk: pivotal data to support broader pipeline approval is 12 months or more away. In the meantime, significant progress in physician education, expansion of LOQTORZI’s market reach, and disciplined execution on pipeline milestones will be important for investors to track.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.