Coherus Oncology, Inc. Common Stock Morgan Stanley 24th Annual Global Healthcare Conference

Thank you very much, Matt, and thank you for the opportunity to speak at your conference this afternoon. Coherus is about the business of overcoming immune resistance in cancer. We do this, I think, with three of our products, which are very interesting. First of all, of course, we have a next generation PD-1 toripalimab, brand name LOQTORZI, which we launched into NPC, which is moving along quite well. This has demonstrated differential activity against KEYTRUDA in a number of settings, and I think primarily, the NPC market has shown some very strong six-year survival data there and good positioning on the NCCN guidelines. However, in terms of the pipeline, we're very excited about Tagmokitug, which is a CCR8-driven T reg depleter. Again, very focused. T reg depletion is a fundamental mechanism of action to help overcome immune resistance.

T regs, as we'll talk about in just a moment, proliferate upon the destruction of tumor cells with a number of mechanisms. It is supposed that if you are able to get rid of these T regs selectively in a tumor microenvironment, then the anti-tumor responsive T cells can be restored. The last product, which I like a lot, of course, is Casdozokitug, which is an anti-IL-27. We're moving that forward in first-line hepatic cellular carcinoma. IL-27 was discovered by Chris Hunter at Penn as a fundamental mechanism for stopping immune response in barrier tissues such as liver and lung and so on. We'll have a little bit more to say about that. Importantly, though, after two, three years after moving these things forward, this half of the year now is very exciting.

We're getting ready to turn over our data cards on a number of these studies. We have six different tumors under investigation with our T reg depleter, Tagmo, and of course, we have the HCC study going with Casdozo. We're happy to answer any of your questions around that. I think it's an eventful time, a bit stressful watching data evolve, but we're having fun with it.

Sure. I think it's one of the key differentiators of Coherus as an innovative oncology story that we have a commercial product that's out in the market launching and making money. We're approved in nasopharyngeal cancer. We are the only available and approved therapy in the U.S., the only guys out there selling. It's about 2,000 patients a year. This translates to about $250 million in opportunity. We estimate that we'll probably be able to reach about 70% of that at maximum market share, that's perhaps $175 million per year. We've been marching that product up. Last quarter, we did 15% quarter-over-quarter, which was pretty strong. We certainly won't do that every quarter, but we were happy to see it last quarter. Last quarter, I think we did about $13.6 million in sales.

When we get to about $15 million or so in revenue from that product, the cost of the commercial team, the COGS, the royalties, and all that will all be taken care of. Any sales beyond $15 million a quarter, we start to cover the overarching SG&A of the company, which, of course, is our focus. We project that next quarter, probably in the second half Q3 or 4, that we'll reach $30 plus per quarter with that product. I think that's a reasonable rate to achieve. At that point, the SG&A and the core burn of the company, the clinical trial costs will be covered. That'll be a big deal for us and that we won't have to keep going back to the market just to keep the lights on and so on.

We've reduced the size of the company over the last three years to about 140-ish people from a max of about 360 as we sold off the LUCENTIS biosimilar or the HUMIRA biosimilar, et cetera. We've got a nice, tidy little innovative oncology company here with a very well controlled burn. As I indicated about in 2027, we'll get to $30-ish plus and have the burn covered. Then ultimately, I think in 2028, somewhere along there, we'll be able to, I think, hit a plateau on a quarterly basis. That's like $40 plus per quarter, and so there's a little extra to cover things that come up here and there. Then I suppose in 2029-ish, we'll actually get up to where we max out for the year. But we're projecting $150 to, say, $200 sometime in that general timeframe between 2028 and 2029.

It gives us considerable operating latitude. The challenges that we have in the market there is that KEYTRUDA has been used in head and neck cancer for a long time, and these are the same physicians that are treating nasopharyngeal cancer, even though with respect to etiology, it is a much different cancer. There is an educational process upon which we show them the six-year survival data, which is over 65 months versus chemotherapy, which is 33 plus months, something like that. We show them the six-year survival data, the NCCN 1A guidelines and so on, and it is an educational process.

We find them responsive once we show them that, but we do have to do that convincing, so we are very focused this past year on, first of all, binding enough data to where you understand where all the physicians are and who is writing the scripts, understanding where we are missing the scripts, and then focusing the team in a sort of multiple disciplinary fashion to block and tackle our way through that. That is the lift that we are doing right now on that, and you will get more updates on that as we go forward this year. The interesting thing, though, about having your own approved PD-1 is two or threefold, actually. First of all, if you go to do clinical trials, you are not buying drug from other people. You have a proprietary PD-1.

As we pivoted the company strategically, that was one of the things that was most important to us to have one. Secondarily, we are combining that with both Tagmokitug, the anti-CCR8, and Casdozokitug. So ultimately, if those are approved, we will get an additional label indication approval for LOQTORZI for each of those indications and sell two vials, two mighties for each sale. So I think that is actually a very efficient way to generate additional sales and additional label indications in the future. I think that is a differentiated story. I think that there is a challenge of overcoming the KEYTRUDA resistance, but we are up for it.

Yeah, absolutely. I think that once we get a little further on with the progress in the NPC, we will have bandwidth to do that. We continually monitor developments in the market for additional products. We looked at a couple last year, for example. I think that you have to be very selective with particular products, maybe the best ones, the ones that you developed yourself. But I think that we are open to collaborations and working with others and so on, but that certainly is top of mind.