Coherus BioSciences Announces Major Restructuring Amid Udenyca Sale to Accord BioPharma

Coherus BioSciences, a prominent player in the biosimilars market, has revealed significant organizational changes following the sale of its Neulasta biosimilar, Udenyca, to Accord BioPharma. The restructuring, announced in the company's full-year earnings results, marks a pivotal moment for Coherus as it shifts its focus towards its clinical-stage pipeline and newly approved products.

Workforce Reduction and Udenyca Divestiture

Coherus disclosed that approximately 50 employees associated with Udenyca will transfer to Accord BioPharma, resulting in a 30% reduction of its workforce. This move will leave Coherus with about 155 employees, continuing a trend of downsizing that has seen the company execute multiple rounds of layoffs in recent years.

The sale of Udenyca to Accord BioPharma, a subsidiary of Intas Pharmaceuticals, was initially announced in December. The deal includes an upfront payment of $483.4 million to Coherus, with the potential for an additional $75 million in net sales milestone payments. Coherus plans to utilize a significant portion of the proceeds to repay $230 million in existing convertible notes and to buy out certain royalty obligations associated with Udenyca.

Strategic Refocus and Financial Outlook

Coherus CEO Denny Lanfear emphasized the strategic importance of the restructuring, stating, "Upon the completion of the Udenyca divestiture and pay-off of our significant debt and royalty obligations, we are projecting a cash position of approximately $250 million." Lanfear added that these efforts, combined with organizational streamlining, are expected to provide Coherus with a cash runway exceeding two years, funding the development pipeline through key data catalysts in 2025 and 2026.

The company's renewed focus centers on its clinical-stage pipeline, which includes casdozokitug, an IL-27 antagonist currently in a phase 2 trial for hepatocellular carcinoma, and CHS-114, a CCR8-targeting antibody. Additionally, Coherus is prioritizing the revenue potential of Loqtorzi, the first China-made PD-1 inhibitor to receive approval in the United States.

Industry Implications and Future Prospects

This restructuring underscores the dynamic nature of the pharmaceutical industry, where companies must continually adapt to market pressures and strategic opportunities. As Coherus pivots away from its established biosimilar business to focus on novel therapeutics and recently approved products, it exemplifies the industry-wide trend of balancing revenue-generating assets with investments in innovative pipeline candidates.

The successful commercialization of Loqtorzi and the advancement of Coherus's clinical programs will be critical factors in determining the company's future trajectory. As the pharmaceutical landscape continues to evolve, Coherus's strategic realignment may serve as a case study for other mid-sized biopharma companies navigating the challenges of portfolio management and resource allocation in a competitive market.