Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
REDWOOD CITY, CA – Coherus BioSciences, Inc. (NASDAQ:CHRS), currently trading at $1.0 per share and down over 13% in the past week according to InvestingPro data, has filed a Form 8-K with the Securities and Exchange Commission (SEC) on Tuesday, providing additional disclosures related to its upcoming Special Meeting and the sale of its UDENYCA franchise to Intas Pharmaceuticals Ltd.
The supplemental information, released today, addresses demands from stockholders and litigation concerning the transaction. With a current market capitalization of $115.79 million and carrying a total debt of $269.88 million, the company has received several demand letters and is aware of four complaints filed with the New York Supreme Court alleging that the initial proxy statement had disclosure deficiencies regarding the sale.
Coherus maintains that the allegations are without merit but has chosen to provide additional disclosures to avoid potential delays in the transaction’s closing and to minimize litigation expenses. These supplementary disclosures include detailed financial advisor analysis and a more comprehensive background of the transaction process.
The updated information reveals that Coherus and its financial advisor, J.P. Morgan, reached out to multiple potential counterparties to gauge interest in a potential transaction. After initial contact, several parties either did not respond, declined due to lack of synergies or financial considerations, or submitted proposals with significantly less consideration than offered by Intas Pharmaceuticals.
Furthermore, the additional disclosures offer an in-depth look into the financial evaluations conducted by J.P. Morgan, including public trading multiples and selected transaction analyses comparing the UDENYCA Business with similar companies and transactions. These analyses helped determine the fair market value and the financial advisability of the proposed sale.
Coherus BioSciences has scheduled its Special Meeting for March 11, 2025, where stockholders will vote on the approval of the Asset Purchase Agreement and the sale of the UDENYCA franchise.
The company’s decision to provide these supplemental disclosures reflects its commitment to transparency and its effort to address stockholder concerns without conceding that additional disclosures were legally necessary or material.
This news is based on a press release statement and has been reported in accordance with SEC filing requirements. For investors seeking deeper insights into Coherus BioSciences’ financial health and prospects, InvestingPro offers comprehensive analysis with 6 additional ProTips and detailed metrics, including analyst price targets ranging from $1.5 to $8.0 per share. Access the full Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks, for expert analysis and actionable intelligence.
In other recent news, Coherus BioSciences has made significant financial moves by agreeing to sell its Udenyca product line to Intas Pharmaceuticals for an upfront cash payment of $483 million, with potential additional sales milestones of up to $75 million. This transaction is set to improve Coherus’s financial position, allowing the company to pay off a $230 million convertible note and approximately $50 million in royalty obligations related to Udenyca. The capital from the sale is earmarked for advancing Coherus’s immuno-oncology pipeline, marking a strategic shift in focus. Analyst firm Baird responded by raising its price target for Coherus from $4.00 to $6.00, maintaining an Outperform rating, reflecting optimism about the company’s financial health and strategic direction.
In another development, H.C. Wainwright adjusted its price target for Coherus to $7.00 from $12.00, while maintaining a Buy rating. This adjustment follows the Udenyca sale, which is expected to significantly reduce the company’s debt. The strategic refocus on the immuno-oncology portfolio, particularly the drug Loqtorzi, aligns with the company’s long-term goals. Meanwhile, Coherus announced that board member Kimberly J. Tzoumakas will be stepping down at the end of the year, with no disagreements reported regarding the company’s operations or policies. Coherus BioSciences continues to focus on its strategic initiatives while maintaining transparency in its governance changes.
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