Coherus Cuts Headcount 30% to Focus on Esophageal Cancer

The Tip Desk · November 9, 2026 · 4 min read

LOQTORZI net revenue reached $14.0 million in the third quarter as the company narrowed its tagmokitug program and lowered the LOQTORZI sales needed to cover core cash burn.

Coherus Oncology (CHRS) reported LOQTORZI net revenue of $14.0 million in the third quarter of 2026, a 25% increase from $11.2 million a year earlier, and said it would concentrate tagmokitug development on esophageal cancer while cutting headcount by about 30%.

Sequential LOQTORZI growth slowed to 3% from 15% in the second quarter, when sales were $13.6 million. The company said demand continued to grow, driven by an increasing number of patients on therapy and longer treatment duration. LOQTORZI remains the only FDA-approved and available U.S. treatment for recurrent, locally advanced or metastatic nasopharyngeal carcinoma.

Net revenue from continuing operations was $14.3 million in the three months ended September 30, 2026, versus $11.6 million a year earlier, which the company attributed primarily to LOQTORZI volume growth. Cost of goods sold from continuing operations was $4.1 million.

Research and development expenses from continuing operations fell to $22.6 million from $27.3 million a year earlier, which the company said was primarily due to savings from reduced headcount, lower infrastructure costs, and lower clinical trial and R&D manufacturing costs. Selling, general and administrative expenses from continuing operations were $21.2 million, down from $24.9 million, driven primarily by lower headcount and decreased operating costs after the company completed its exit from the biosimilar business in 2025.

Net loss from continuing operations was $38.9 million, or $(0.25) a share on a diluted basis, compared with $44.5 million, or $(0.38) a share, in the year-ago quarter. Non-GAAP net loss from continuing operations was $31.2 million, or $(0.20) a share, versus $38.9 million, or $(0.33) a share, a year earlier. The GAAP loss included a $3.4 million loss on debt extinguishment.

Chief Executive Officer Denny Lanfear said the strategic prioritization of esophageal cancer as the best-in-disease focus for tagmokitug, together with the wind-down of the Transition Services Agreement and completion of the toripalimab process transfer, provided an opportunity to right-size the organization. Chief Medical Officer Rosh Dias said the company’s immediate next step is to align with the FDA on expanding the signal in esophageal cancer, with an initial focus on the second-line setting.

Coherus will continue ongoing first-line ESCC and second-line ESCC and EAC indications and pursue regulatory alignment on an expedited development path. Enrollment remains ongoing in Phase 1b cohorts of tagmokitug with toripalimab, with or without chemotherapy, in first- and second-line ESCC. The second-line EAC cohort has completed accrual and remains in follow-up. Across second-line ESCC and second-line EAC, 22 patients were treated and 13 were evaluable, with a confirmed overall response rate of 33.3% and a clinical benefit rate of 55.6%. The company plans a new study in second-line esophageal cancer and intends to align with the FDA on the design and a proposed 700 mg dose.

A Phase 1b study of tagmokitug with pasritamig in metastatic castration-resistant prostate cancer is expected to initiate in the fall of 2026. Enrollment in the randomized Phase 2 trial of casdozokitug, toripalimab and bevacizumab in first-line unresectable hepatocellular carcinoma is complete, with the first data readout expected in the first half of 2027.

Cash, cash equivalents and marketable securities totaled $83.6 million as of September 30, 2026, compared with $172.1 million as of December 31, 2025. Those balances included Transition Services Agreement-related collections that would be applied to associated TSA payables and accrued liabilities, which totaled $19.6 million. Term loans were $52.6 million. Net cash used in operating activities was $34.0 million in the three months ended September 30, 2026.

Chief Financial Officer Bryan McMichael said the financial benefits of right-sizing and reducing the scope of forward-focused efforts will be realized over the next two quarters, lowering core cash burn by $6 million to $7 million quarterly. That, he said, lowers the quarterly LOQTORZI revenues required to cover core burn to $25 million to $30 million, down from $30 million to $35 million as previously guided. Lanfear said the company will remain focused on growing LOQTORZI market share versus chemo-only and off-label IO in nasopharyngeal carcinoma and that the approach can provide a path to financial self-sufficiency.