1. Coherus BioSciences, Inc. (NASDAQ:CHRS)
52 Week Range: $1.01 – $4.47
Current Share Price: $1.13
Short % of Shares Outstanding: 21.83%
Number of Hedge Funds holding stakes as of Q2 2024: 16
Coherus BioSciences, Inc. (NASDAQ:CHRS) is a biopharmaceutical company that develops and commercializes cancer treatments. The company’s woes started early in the year after it announced a deal to divest one of its units, Sandoz, for $170 million. With the ale, the company secured much-needed financing for reducing debt and interest costs
Nevertheless, the sale also translated to losing a key revenue stream and long-term growth driver. The company had generated $40 million in sales from Cimeril products under the Sandoz unit, representing 40% growth in the third quarter of last year. The sale all but affirmed the financial challenges that Coherus faces, which has been one of the catalysts behind the high short interest of 21.83%
Coherus BioSciences, Inc. (NASDAQ:CHRS) delivered mixed second-quarter results, with revenues increasing to $65 million from $58.7 million a year ago. The company is still struggling to post a profit, having generated a net loss of 16.4 million, a significant improvement from a net loss of $32.8 million a year ago.
Analysts at UBS have downgraded the stock, citing concerns about Coherus BioSciences, Inc. (NASDAQ:CHRS)’s growth metrics. Of great concern is the fact that the company is struggling to monetize its core products, Yusimry and Cimerli. For instance, it has reduced the expected compound annual growth rate (CAGR) for revenues from 2024 to 2028, which has been revised to a decline of 4%.
The adjustments underline changing expectations about the company’s long-term prospects and performance. Coherus BioSciences, Inc. (NASDAQ:CHRS)’s largest investor in the second quarter of 2024 is David Rosen’s Rubric Capital Management, which owns 10.40 million shares worth $17.99 million. An Insider Monkey survey of 912 hedge funds for the same time period revealed that 16 funds had also invested in the firm.
Here is what Aristotle Small Cap Equity Strategy said about Coherus BioSciences, Inc. (NASDAQ:CHRS) in its fourth quarter 2023 investor letter:
“Coherus BioSciences, Inc. (NASDAQ:CHRS), a commercial-stage biopharmaceutical company engaged in the development and commercialization of biosimilar and immune-oncology therapeutics for major regulated markets, was removed from the portfolio. Despite the company’s efforts to grow and diversify its revenue base through a series of upcoming product launches, a variety of factors contributed to our decision to step away from our investment including a shift in company focus, competitive pricing pressures, and a recent C-suite departure.”
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