Coherus BioSciences, Inc. has entered into an agreement with Sandoz Group to sell its CIMERLI (ranibizumab-eqrn) ophthalmology franchise—a notable biosimilar of LUCENTIS (ranibizumab injection, Genentech, A Member of the Roche Group).
Let’s start with Coherus.
Based in Redwood City, California, Coherus is a commercial-stage biopharmaceutical company with a focus on research, development, and commercialization of next-generation immunotherapies to treat cancer.
It entered the ophthalmology market in 2022 with a significant market share in its non-core area of business.
As of late, however, the company’s target area of focus has included developing and building up an immuno-oncology franchise that includes LOQTORZI (toripalimab-tpzi) and UDENYCA (pegfilgrasim-cbqv), an on-body injection system indicated to decrease the incidence of infection in chemotherapy patients.
And Sandoz?
Historically, Sandoz can trace back its roots to 1886. Fast forwarding to 2003, Novartis relaunched the Swiss-based company where they have been specializing in generic pharmaceuticals and biosimilars with the intent to develop and commercialize novel, affordable therapeutics to address unmet medical needs.
Of note, Novartis separated the Sandoz business in 2022 as a stand-alone, publicly traded company via a 100% spin-off. In October 2023, the company officially became independent.
Gotcha. Now CIMERLI.
FDA approved in 2022, CIMERLI is a vascular endothelial growth factor (VEGF) inhibitor—and an interchangeable biosimilar to LUCENTIS, which was FDA approved in 2006 —indicated for the treatment of patients with the following conditions:
- Wet age-related macular degeneration (AMD)
- Macular edema following retinal vein occlusion (RVO)
- Diabetic macular edema (DME)
- Diabetic retinopathy (DR)
- Myopic choroidal neovascularization (mCNV)
The drug is intended for intravitreal injection use only. See its prescribing information (PI) for the recommended dosages of each indication.
So about this deal …
Per the companies, Coherus will divest (sell off) the CIMELI ophthalmology franchise and its supporting commercial infrastructure, which will include the following:
- Product inventory
- Biologics license application (BLA)
- Ophthalmology sales and select field reimbursement teams
- Product inventory on hand
- Access to proprietary commercial software
For how much?
According to Coherus, the deal includes an upfront, all-cash consideration of $170 million plus an additional amount for CIMERLI’s product inventory (subject to working capital adjustments at the date of closing).
Why sell off now?
Though Coherus has gained a strong footing in the ophthalmology market share in the last 2 years, its priorities for the future involve focusing on its core therapeutic area: oncology.
“We believe it is prudent now to monetize these non-core assets to pay down debt [and] reduce interest costs,” stated Chairman and CEO Danny Lanfear.
He added that the divestiture will also enable the company to reduce its headcount and overhead costs, “enhancing our sustainable and growing oncology business.”
Lastly, when are they expected to close?
Within the first half of 2024—subject to certain closing conditions and approvals, according to Coherus.