BMO Capital Markets said in a note CHS-3351 may be Coherus Biosciences Inc CHRS's most underappreciated asset. CHS-3351 is a biosimilar of ranibizumab, an mAb fragment against VEGF-A used to treat neovascular age-related macular degeneration, or AMD.
Analyst Ian Somaiya said CHS-3351 targets the $1.41 billion in U.S. revenues of Roche Holding Ltd. (ADR) RHHBY's Lucentis in wet AMD, whose U.S. patents expire in 2020. The analyst also feels it could take share away from Regeneron Pharmaceuticals Inc REGN's Eylea, which raked in sales of $3.2 billion in 2016.
"A concentrated prescriber base should enable Coherus to commercialize independently in the US. CHS-3351 could generate peak sales of $500mn and drive upside of $25 per share (from $75 to $100) to our Upside scenario," the firm said.
Initiating At Outperform
BMO Capital Markets initiated coverage of the shares of Coherus Biosciences at Outperform, with a $54 price target.
The firm clarified the current valuation assumes FDA approval of CHS-1701 would be delayed and reflects little or no value for the rest of the pipeline.
"We believe this dynamic provides an attractive entry point as a likely on-time approval of CHS-1701 could enable CHRS shares to rapidly approach our price target, with a delay of upwards of 18–24 months resulting in downside to $15 per share," the firm said.
"CHS-1701's approval by June 9th BsUFA action date would ensure first-to-market advantage and support our $1.5 billion peak sales and Outperform rating."Related Links:
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.