And the part that isn’t appreciated about toripalimab is Junshi continues to develop it and is now all of their studies are multiregional clinical trials, which would make it acceptable to the FDA. And so they have a Phase 3 ongoing with their pipeline. So we’ll be watching. While we’re not part of that study or funding that study, clearly, as it gets registered, we have the market share. So we’ll be watching for that. And that study opened last year. So typical small cell lung cancer Phase 3 metric, so later in the next couple of years.
Operator: Our next question comes from Chris Schott with JPMorgan.
Ethan Brown: This is Ethan Brown on for Chris Schott. Just to start off, can you maybe offer some color on how you’re thinking about OpEx looking past 2024, given, on one hand, you have the pipeline that you’re trying to progress and then balancing that against the company’s past profitability? And then I have one more question after that.
Dennis Lanfear: I’ll let Bryan McMichael take a shot at that. Bryan?
Bryan McMichael: Yes. So we’re not providing guidance beyond ’24 at this time, as we get into — as we sort out some of the things we’re working on with our capital structure, we’ll have a better idea of how we’ll move forward from there. And that will inform how we move forward in 2026.
Dennis Lanfear: Yes. I would say after we achieve profitability and cash flow positivity, we intend to stay profitable, if that’s your question. I would offer you one other point, which is LOQTORZI. We expect LOQTORZI to reach peak sales in 2.5 to 3 years. And we further expect a continued increase in market share for UDENYCA over the short to medium term. So both of those things will continue to drive top line for us. And further, we’ll continue to show very high degree of discipline with respect to controlling our expenses and SG&A, as you’ve seen already.
Ethan Brown: That’s very helpful. And then just pivoting over to UDENYCA. Is there any color you can offer on how much sales at this point is coming from the auto injector versus the traditional presentation? And maybe more broadly, just your expectations for pricing looking to 2024? And maybe more specifically, if you think Coherus is now more insulated versus other players given you have the whole suite of products approved in the market?
Dennis Lanfear: Yes. That’s a very, very, very, very good question. It’s a very observant nuance. I’ll let Paul address that particular issue of the three presentations and our ability to have a sustainable franchise in the market and support pricing, Paul?
Paul Reider: Yes. Chris, thanks for your question. So our whole strategy with UDENYCA with the three presentations is to give the customers choice so that they can choose the presentation that meets the unique needs of the patient and the doctor. And that’s no other brand can do that. We saw pretty impressive growth with auto-injector in the fourth quarter, driven largely in the clinic market. And that’s because now we’ve got nurses that we’re using it a great experience with it, liked it, and it’s starting to now get its foothold into the workflow in the offices. As it relates to the percent of the AI business to the total UDENYCA, it was still under 10%. So the Workhorse continue to be the prefilled syringe presentation. But as we see in 2024, that’s all going to take a new shape now that we have our on-body device launched as well as the auto-injector in the prefilled syringe.
But as I mentioned in my remarks, Chris, moving forward in year sixth of this brand’s life cycle, we’re getting that second wave of growth and our focus is really going to be around driving profitable revenue and market share growth. And we are confident we’re going to do that in 2024.
Dennis Lanfear : Ethan, the other point that I would make is we’ve played the long-term game here with UDENYCA in the market as Paul said. We’re six years in. We invested significantly both in the auto-injector, some $25 million in years past. It took us at least three or four years to bring forward the on-body. That was probably a $35 million investment. We underwent a number of years where we had very strong discipline around pricing and ASP management, consider ourselves as stewards of ASP. In the interim, others have exited the market with aggressive pricing, we’re still there. The new market entrants really haven’t had an impact on the business. And I think that the significant market share increase like the 4-week trailing 25% and our look forward here for 2024 shows that our long-term strategy is paying off.
