The Prospects For CHS-3351, Coherus' Most Underappreciated Asset
BMO Capital Markets said in a note CHS-3351 may be Coherus Biosciences Inc (NASDAQ: CHRS)'s most underappreciated asset. CHS-3351 is a biosimilar of ranibizumab, an mAb fragment against VEGF-A used to treat neovascular age-related macular degeneration, or AMD.
Promising Potential
Analyst Ian Somaiya said CHS-3351 targets the $1.41 billion in U.S. revenues of Roche Holding Ltd. (ADR) (OTC: RHHBY)'s Lucentis in wet AMD, whose U.S. patents expire in 2020. The analyst also feels it could take share away from Regeneron Pharmaceuticals Inc (NASDAQ: REGN)'s Eylea, which raked in sales of $3.2 billion in 2016.
"A concentrated prescriber base should enable Coherus to commercialize independently in the US. CHS-3351 could generate peak sales of $500mn and drive upside of $25 per share (from $75 to $100) to our Upside scenario," the firm said.
Initiating At Outperform
BMO Capital Markets initiated coverage of the shares of Coherus Biosciences at Outperform, with a $54 price target.
The firm clarified the current valuation assumes FDA approval of CHS-1701 would be delayed and reflects little or no value for the rest of the pipeline.
"We believe this dynamic provides an attractive entry point as a likely on-time approval of CHS-1701 could enable CHRS shares to rapidly approach our price target, with a delay of upwards of 18–24 months resulting in downside to $15 per share," the firm said.
"CHS-1701's approval by June 9th BsUFA action date would ensure first-to-market advantage and support our $1.5 billion peak sales and Outperform rating."
Related Links:
Mark Your Calendar For These Days In May To Play The Volatility Around FDA Decision Dates
13 Emerging Biotechs With Catalysts In 2017
Latest Ratings for CHRS
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | JP Morgan | Downgrades | Overweight | Neutral |
Nov 2021 | HC Wainwright & Co. | Maintains | Buy | |
Jul 2021 | HC Wainwright & Co. | Maintains | Buy |
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Analyst Color Biotech Long Ideas Health Care Price Target Initiation Analyst Ratings Trading Ideas Best of Benzinga