CHRS - Worth Buying? (Aug 22')
CHRS is a very unusual small-cap biopharma stock because it started as. and still remains in part, a biosimilar company. A biosimilar is a generic version of a biologic drug. There are few if any other smid-cap biopharma companies that have launched or are developing biosimilars, from our vantage point. The advantage of developing biosimilars is that there is immensely less risk in bringing these products to market. The disadvantage is that the value of a biosimilar is a fraction of the innovator drug.
CHRS’s biosimilar business started out great with its first biosimilar, UDENYCA (Neulasta biosimilar), but Amgen (Neulasta innovator) was able to mute CHRS’s success with the launch of an on-body version that CHRS is in the process of copying too. However, UDENYCA will likely still bring in $100M this year for CHRS and the company expects upcoming launches of CIMERLI (Lucentis biosimilar approved 8/2/22), and YUSIMRY (Humira biosimilar) to each drive >$100M/annual revenue for CHRS in the coming 2-5 years. The company projects $1.2 to $2.2 billion in revenue by 2026.
CHRS switched gears in early 2021 when it licensed clinical stage, innovative immuno-oncology assets from Chinese biotech Junshi (Source). It’s latest stage IO asset is an anti-PD1, Tori, with some differentiated properties from current anti-PD1 blockbusters such as Keytruda. It recently received a CRL (FDA rejection letter) for its 1st indication for Tori, a very small market, nasopharyngeal carcinoma (NPC). However, CHRS quickly resubmitted to address the “CMC” (not safety or efficacy) issue and has its next PDUFA date this year. It’s next most valuable IO asset currently is its anti-TIGIT antibody.
See our most recent Bull/Bear case for CHRS: CLICK HERE.
Article History:
Published 8/3/22
JM/EJV
This article is NOT investment, tax, or legal advice. Please use this as a starting point for your detailed diligence and consult professional advisers before making investment decisions.