Douglas Tsao, an analyst from H.C. Wainwright, maintained the Buy rating on Coherus Biosciences (CHRS – Research Report). The associated price target remains the same with $7.00.
Douglas Tsao has given his Buy rating due to a combination of factors surrounding Coherus Biosciences’ promising early clinical data for their CHS-144/toripalimab treatment. The data from a Phase 1 study indicated potential efficacy in overcoming PD-1 resistance in patients with head and neck squamous cell carcinoma (HNSCC), a condition with limited treatment options and low response rates to existing therapies. A confirmed partial response in a heavily pretreated patient suggests that CHS-144 could offer a new treatment strategy by converting ‘cold’ tumors into ‘hot’ ones, thereby enhancing the effectiveness of PD-1 therapies.
Furthermore, the study’s results showed significant anti-tumor activity, with a notable reduction in target lesions and depletion of CCR8+ Treg cells, which supports the mechanism of action for CHS-144. The ongoing development and future plans to expand the study into other solid tumors, such as gastric cancer, further bolster the potential of this treatment. The unmet need in the HNSCC space and the support from key opinion leaders add to the positive outlook for Coherus Biosciences, justifying the Buy rating and the price target of $7.00.