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On Tuesday, H.C. Wainwright reiterated its Buy rating and $7.00 price target for Coherus Biosciences (NASDAQ:CHRS) shares, representing significant upside potential from the current price of $1.03. According to InvestingPro data, the stock has shown strong momentum with a 38.55% gain over the past six months, despite broader market challenges. The firm’s analyst highlighted the recent clinical data presented at the American Association for Cancer Research (AACR) 2025 conference as a significant indicator of the drug’s potential. The data included results from a Phase 1 dose expansion study of CHS-114, an ADCC-enhanced anti-CCR8 antibody, in patients with recurrent or metastatic head and neck squamous cell carcinoma.
The study’s design comprised three arms: arm 1a focusing on monotherapy CHS-114 dose escalation, arm 1b testing monotherapy CHS-114 at high and low doses, and arm 2 combining high/low dose CHS-114 with toripalimab. Notably, in arm 2, a confirmed partial response was observed in a patient who had previously shown resistance to PD-1 treatment. This response was characterized by a significant depletion of CCR8+ Treg cells, an increase in CD8+ T cells, and a 40% reduction in target lesions, with 2 out of 4 non-target lesions disappearing after two treatment cycles.
The promising results from arm 2 of the study suggest that CHS-114 has the potential to transform "cold" tumors into "hot" tumors, thereby overcoming PD-1 resistance and enabling effective PD-1 treatment. This could represent a new strategy in PD-1 combination therapy. As of January 24, 2025, seven patients had been treated in arm 2 of the study. While the clinical progress is encouraging, InvestingPro analysis indicates the company faces significant financial challenges, including rapid cash burn and substantial debt burden. Get access to 6 more key InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
The analyst from H.C. Wainwright pointed out the achievement represented by the partial response in a heavily pretreated PD-1 refractory patient, emphasizing the potential for CHS-114 to enable PD-1 treatment. This early clinical data supports the firm’s continued confidence in Coherus Biosciences, as reflected in the reiterated Buy rating and $7.00 price target. With the company’s next earnings report due on May 8, 2025, investors will be closely watching for updates on both clinical progress and financial performance. The company currently maintains a market capitalization of $119.37 million.
In other recent news, Coherus BioSciences has reported promising data from a Phase 1 clinical trial for its cancer treatment, CHS-114. The trial showed clinical efficacy in treating head and neck squamous cell carcinoma, leading to an expansion of the study to include gastric cancer. Additionally, Coherus BioSciences has announced the resignation of its Chief Commercial Officer, Paul Reider, effective April 30, 2025, following the divestiture of its UDENYCA franchise. Reider’s departure is not due to any discord with the company, and he will continue to advise the executive leadership team until 2026. Coherus plans to repurchase approximately $170 million of its outstanding convertible notes, conditioned upon the completion of the UDENYCA sale to Intas Pharmaceuticals. Shareholders have approved this sale, marking a strategic shift for the company to focus on its oncology portfolio. Furthermore, H.C. Wainwright upgraded Coherus’s stock rating, citing strong sales growth of its cancer treatment, Loqtorzi, which saw a 29% increase in the fourth quarter. The National Comprehensive Cancer Network’s updated guidelines have also favored Loqtorzi as a preferred regimen for advanced nasopharyngeal carcinoma, which is expected to boost its uptake in the future.
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