Coherus gains on eye drug sale to Sandoz for $170 mln

Coherus Oncology

22/01/2024 15:39

(Updates)
    ** Shares of drugmaker Coherus BioSciences  CHRS.O  rise
18.7% to $2.90 premarket
    ** Sandoz  SDZ.S  to buy CHRS' biosimilar eye drug, Cimerli,
for $170 mln 
    ** Cimerli, used to treat vision impairment and loss, is
interchangeable with Lucentis, which is marketed by Roche's
 ROG.S  Genentech in the U.S. and Novartis  NOVN.S  in the rest
of the world
    ** Brokerage Truist Securities says deal would allow CHRS
"to reduce debt overhang and eliminate fear of going concern",
besides reducing costs related to the ophthalmology business
        ** Deal also helps CHRS "focus on the sustainable and
growing oncology business" - Truist
  
    ** Deal expected to close in the H1
    ** CHRS stock slumped 58% in 2023

 (Reporting by Pratik Jain and Leroy Leo in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))