Coherus BioSciences Moves Forward with Major Convertible Notes Buyback
Coherus BioSciences Announces Significant Convertible Notes Repurchase
Coherus BioSciences, Inc. (NASDAQ: CHRS), a prominent player in the oncology sector, is taking a decisive step by initiating the repurchase of approximately $170 million in convertible notes. This strategic move comes as the company braces for the completion of its anticipated divestiture of the UDENYCA franchise.
Details of the Repurchase Transactions
The company is engaging in privately negotiated transactions, aiming to buy back its 1.500% Convertible Senior Subordinated Notes, maturing in 2026. The repurchase will be executed at a cash price equivalent to the principal amount, alongside any accrued unpaid interest. This approach not only aligns with Coherus' current financial objectives but also sets the stage for a more streamlined capital structure.
Impact of the UDENYCA Divestiture
The successful completion of these repurchases is contingent upon the closing of the planned divestiture of the UDENYCA franchise to Intas Pharmaceuticals, a leading firm based in India. The agreement, signed last year, holds significant implications for Coherus' financial landscape. Post-transaction, approximately $60 million worth of convertible notes will remain outstanding, which the company plans to repurchase once the divestiture is finalized.
Strengthening Financial Strategy
Coherus is also enhancing its operational framework by securing the consent of the majority holders of the outstanding convertible notes. This consent facilitates the execution of proposed amendments to the indenture related to these notes. By making these strategic adjustments, Coherus is positioning itself for future growth amidst changing market conditions.
About Coherus BioSciences
As a fully integrated commercial-stage company, Coherus is recognized for its innovative approach to oncology. The firm boasts an approved next-generation PD-1 inhibitor, LOQTORZI (toripalimab-tpzi), which is already generating increasing revenue, and has a robust pipeline including mid-stage clinical candidates aimed at treating various cancers such as liver and head and neck tumors.
Advancements in Immuno-Oncology Pipeline
Coherus is committed to enhancing treatment options for cancer patients through its immuno-oncology pipeline. This includes promising candidates like casdozokitug, an IL-27 antagonistic antibody undergoing multiple clinical evaluations, and CHS-114, a selective anti-CCR8 antibody with ongoing studies assessing its effectiveness in advanced solid tumors.
Looking Ahead
The divestiture of UDENYCA signals an important transition for Coherus, allowing the company to reinvest its resources into innovative therapies and further refine its focus on oncology. Closing this transaction is expected early in the next quarter and represents a strategic move to streamline operations and boost growth potential.
Frequently Asked Questions
What is the purpose of Coherus' convertible notes repurchase?
The repurchase aims to strengthen Coherus' financial position and simplify its capital structure as it moves towards the divestiture of its UDENYCA franchise.
How much is Coherus planning to repurchase in convertible notes?
Coherus plans to repurchase approximately $170 million of its outstanding convertible notes.
Is the completion of the repurchase dependent on other events?
Yes, the completion of the repurchase is contingent upon successfully closing the UDENYCA divestiture transaction.
What is the significance of the proposed amendments to the indenture?
The amendments will ensure that the repurchase transactions align with Coherus’ strategic objectives, particularly in light of the UDENYCA divestiture.
Who can investors contact for more information?
Investors can reach out to Jodi Sievers, VP, Investor Relations & Corporate Communications at IR@coherus.com for further inquiries.
About The Author
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