CHRS - Bull Thesis
BULL THESIS
Rare opportunity for smid-cap investor to invest in a biosimilar company
Good execution on 1st biosimilar (UDENYCA) launch
Lead biosimilar UDENYCA® had $327M revenue in 2021
Good value play currently
EV of <$1B
Only ~4X 2022 product revenue
<1X 2026 (low end) projected revenue
Especially considering possibly 4 new major product launches over next 15 months
Lower risk play - rare find for smid-cap biopharma with biosimilars business
Cash until at least 2024 source
$325 million cash as of March 30, 2022 + credit facility
Model to fund R&D with biosimilar revenue - less/no dilution
4 product launches possible over next 15 months
Anti-PD1 binds a unique epitope and has other differentiating properties
Lucentis biosimilar
Should be approved 8/2/22
May compete for broader $7B anti-VEGF market not just $1.5B Lucentis
Humira biosimilar (YUSIMRY)
$17B Humira market
YUSIMRY already approved by FDA
Awaits Abbvie agreement to launch (July 2023)
Anti-TIGIT asset
Likely undervalued currently
Too soon to understand value despite recent Roche failure for competitive molecule
(See below for full bull/bear analysis)
Bull Thesis (more details)
UDENYCA (Neulasta - pegfilgrastim biosimilar)
Delivered >$1B net sales since launch
Q4 2021 Product Sales: $73M
Maintained UDENYCA ® position as #1 pegfilgrastim pre-filled syringe
Good execution of product launch
UDENYCA OBI (launching in ‘23?) would compete directly with Neulasta® Onpro® which retains approximately 50% share of the overall pegfilgrastim market.
Especially valuable if Covid pandemic re-emerges
YUSIMRY (CHS-1420) (Humira® Biosimilar (adalimumab)) (Anti-TNF)
Will be one of the early biosimilars in this enormous market
Agreement with Abbvie to launch on or after July 1st 2023
Already FDA approved
Will have large supply
CHS-201 (Lucentis®) (ranibizumab) Biosimilar (anti-VEGF)
PDUFA date set for August 2, 2022
Large $>7B VEGF market
Targeting 1.5B Lucentis initially
8.1% CAGR ‘18-’26
Could compete for more of VEGF market than Lucentis
Toripalimab (anti PD-1 molecule)
If approved, toripalimab will be the 1st & only PD-1 inhibitor in U.S. for the treatment of advanced nasopharyngeal carcinoma.
Next PDUFA date Dec 2022.
FDA had no issues with safety or efficacy data
Next upis SCLC data
Anti-TIGIT
Could be undervalued opportunity as value of anti-TIGIT class has not been determined despite recent Roche failure for competitive asset
JM/MV 8/2/22
JM/MV 4/7/22
MV 4/7/22
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