Why Coherus Biosciences 15% Dip Provides An Opportunity To Buy

Shares of Coherus Biosciences Inc (NASDAQ: CHRS) were trading down more than 15 percent on Monday following news that the Patent Trials and Appeals Board didn't institute their Intellectual Property Rights (IPR) '166 over Abbvie’s Humira.

Amid the price action, Citi analyst Mohit Bansal advised investors in a note that the institution of the ‘166 patent IPR isn't core to Citi’s thesis regarding Coherus and that investors should “buy on weakness.”

Bansal maintained a Buy rating and $36 price target for the stock.

"While this is being seen as a negative for CHRS, we note that our checks with patent experts did not suggest this patent was a key obstacle against a Humira biosimilar," said Bansal.

At time of writing, shares of Coherus were trading down around 11.5 percent at $24.90.