Coherus Oncology — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue from continuing operations was $14.3 million for the three months ended September 30, 2026, a 23% increase from $11.6 million in the same period in 2025; for the nine months ended September 30, 2026, revenue was $40.9 million, up from $29.4 million in 2025.
• LOQTORZI® net revenue specifically was $14.0 million in Q3 2026, representing a 25% increase over $11.2 million in Q3 2025 and a 3% increase versus $13.6 million in Q2 2026.
• Cost of goods sold (COGS) was $4.1 million for Q3 2026 compared to $3.7 million in Q3 2025, and $12.1 million for the nine months ended September 30, 2026, compared to $9.8 million in 2025.
• Research and development (R&D) expenses were $22.6 million for Q3 2026, down from $27.3 million in Q3 2025, and $65.6 million for the nine months ended September 30, 2026, down from $77.9 million in 2025.
• Selling, general and administrative (SG&A) expenses were $21.2 million for Q3 2026, down from $24.9 million in Q3 2025, and $65.3 million for the nine months ended September 30, 2026, down from $77.0 million in 2025.
• Net loss from continuing operations was $38.9 million ($0.25 per share) for Q3 2026, compared to $44.5 million ($0.38 per share) in Q3 2025; for the nine months ended September 30, 2026, the loss was $109.2 million ($0.73 per share) compared to $136.8 million ($1.18 per share) in 2025.
• Non-GAAP net loss from continuing operations was $31.2 million ($0.20 per share) for Q3 2026, compared to $38.9 million ($0.33 per share) in Q3 2025; for the nine months ended September 30, 2026, it was $95.3 million ($0.64 per share) compared to $118.8 million ($1.02 per share) in 2025.
• Cash, cash equivalents, and marketable securities totaled $83.6 million as of September 30, 2026, down from $172.1 million as of December 31, 2025.
• Term loans increased to $52.6 million as of September 30, 2026, from $37.1 million as of December 31, 2025.
• TSA payables and accrued liabilities were $19.6 million as of September 30, 2026, down from $65.1 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expects to lower core cash burn by $6 million to $7 million per quarter over the next two quarters.
• The quarterly LOQTORZI revenue required to cover core burn is now estimated at $25 million to $30 million, down from the previous guidance of $30 million to $35 million.
• The company intends to align with the FDA on an expedited development path for tagmokitug in the second-line esophageal cancer setting.
• Management aims to achieve financial self-sufficiency over the next four to five quarters by focusing on growing LOQTORZI market share against chemo-only and off-label IO treatments.

Business Segments and Product Lines:

• LOQTORZI® (toripalimab-tpzi): Remains the only FDA-approved treatment in the U.S. for recurrent, locally advanced, or metastatic nasopharyngeal carcinoma (NPC) and is the only preferred Category 1 first-line treatment option recommended in combination with cisplatin and gemcitabine by the NCCN. Demand growth is driven by increasing patient numbers and treatment duration.
• Tagmokitug: Development has been strategically prioritized to focus on esophageal cancer (ESCC and EAC) as a potential best-in-disease treatment, with other indications deprioritized. Interim data from the TREGCHECK™ Phase 1b/2a program showed a confirmed Overall Response Rate (cORR) of 33.3% and a Clinical Benefit Rate (CBR) of 55.6% in 13 evaluable patients with second-line ESCC and EAC. Enrollment is ongoing in first-line and second-line ESCC cohorts, while the second-line EAC cohort has completed accrual.
• Tagmokitug + Pasritamig: A Phase 1b clinical study evaluating this combination in metastatic castration-resistant prostate cancer (mCRPC) is expected to initiate in the fall of 2026.
• Casdozokitug: Enrollment in the randomized Phase 2 trial for first-line unresectable hepatocellular carcinoma (uHCC) is complete, with the first data readout expected in the first half of 2027.

Market and Competitive Landscape:

• LOQTORZI is positioned as the only preferred subsequent-line treatment for NPC by the NCCN.
• Management characterizes chemo-only approaches as inferior and off-label immune-oncology (IO) treatments as lacking standard-of-care level benefit for NPC patients.
• Esophageal cancer is described as a difficult-to-treat tumor with significant unmet medical need, where tagmokitug has demonstrated activity in PD-L1 negative tumors and rescued PD-1 refractory patients.

Risks and Challenges:

• The company faces risks inherent in the clinical drug development process, including the timing and results of anticipated clinical data.
• Future results depend on the ability to raise funds, which may not be available on acceptable terms.
• Risks include the effectiveness of the cost reduction plan, competitive position of LOQTORZI, regulatory approval timelines, and potential FDA review issues.
• The company remains dependent on the commercial success of LOQTORZI to fund pipeline development and achieve financial self-sufficiency.

Management Commentary and Tone:

• CEO Denny Lanfear stated that the strategic prioritization of esophageal cancer and the wind-down of the Transition Services Agreement (TSA) provide an opportunity to right-size the organization and deliver financial benefits.
• CFO Bryan McMichael noted that right-sizing and reducing the scope of forward-focused efforts provide substantial and durable benefits to the operating model, with benefits realized over the next two quarters.
• CMO Rosh Dias highlighted the compelling anti-tumor activity of tagmokitug and the plan to align with the FDA for an expedited path in the second-line esophageal cancer setting.
• The company reduced headcount by approximately 30% as part of the right-sizing initiative.

Other Key Points:

• The company completed the exit from its biosimilar business in 2025, contributing to lower SG&A expenses.
• A loss on debt extinguishment of $3.4 million was recorded for the nine months ended September 30, 2026.
• Proceeds from a 2031 Term Loan totaled $52.7 million for the nine months ended September 30, 2026.
• Proceeds from the issuance of common stock under a public offering were $53.7 million for the nine months ended September 30, 2026.
• The company plans to execute ex-U.S. licensing deals for its clinical-stage candidates as clinical data supports such transactions.