Coherus Divest Ophthalmology Franchise to Sandoz in $170 Million Deal

In a move to pay down debt and focus on its oncology business, Coherus BioSciences has entered into an agreement to divest its Cimerli (ranibizumab-eqrn) ophthalmology franchise to Sandoz for $170 million in cash, plus Cimerli inventory costs. This divestiture includes Coherus’ Cimerli biologics license application, ophthalmology sales, select field reimbursement teams, Cimerli product inventory on hand, and access to proprietary commercial software.

“Since entering the ophthalmology market in 2022, we have gained strong market share and created significant value in a non-core therapeutic area by leveraging our buy-and-bill commercial expertise. We believe it is prudent to now monetize these non-core assets to pay down debt, reduce interest costs, and take the opportunity to focus on our core therapeutic area, oncology,” Denny Lanfear, Chairman and Chief Executive Officer of Coherus, said in a company news release. “Additionally, this divestiture will allow us to reduce our headcount and overhead costs, enhancing our sustainable and growing oncology business.”

Coherus’ oncology assets include the Udenyca (pegfilgrastim-cbqv) franchise, with three FDA-approved presentations; Loqtorzi (toripalimab-tpzi), an FDA-approved, next-generation PD-1 inhibitor; and an immuno-oncology pipeline of next-generation tumor microenvironment oncology drug candidates.

Closing is anticipated in the first half of 2024, subject to closing conditions and approvals, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.