The final set of results for Coherus Biosciences' (CHRS 5.70%) 2023 was released after market hours on Wednesday, and investors reacted with displeasure the following day. They traded the stock down by more than 6% Thursday, a much steeper fall than the 0.6% dip of the S&P 500 index.
Fourth-quarter revenue doubled, but still fell short of estimates
For the quarter, Coherus -- a busy commercial-stage biotech -- posted net revenue of $91.5 million, slightly more than double the $45.4 million it earned in the same period of 2022. A different dynamic was in force on the bottom line, where the company's non-GAAP (adjusted) net loss deepened to $68.9 million ($0.62 per share) from the year-ago deficit of $47.1 million.
Despite the big revenue bounce, Coherus's top line fell short of analyst expectations. Collectively, prognosticators following the stock were anticipating just under $96.9 million for the line item. They were also projecting far less red ink, with an average adjusted net loss estimate of $0.21 per share.
Within its earnings release, Coherus provided several "business highlights." The largest of these was the company's divestiture of its ophthalmology unit to peer Sandoz at the beginning of March for an all-cash upfront payment of $170 million, in addition to nearly $18 million for the business's key assets. Additionally, Coherus said its new focus on oncology would result in a reduction of its workforce of 30% by the end of this year.
Expenses should fall through 2024
Coherus also proffered limited guidance for the entirety of 2024. It anticipates that it will spend $250 million to $265 million in combined research and development, and selling, general, and administrative expenses during the year. That would be down considerably from the combined $301.5 million in full-year 2023.
