Coherus BioSciences to Acquire Surface Oncology; Transaction Valued at up to $65 million

Coherus BioSciences Inc (Nasdaq: CHRS) has entered an agreement to acquire Surface Oncology Inc (Nasdaq: SURF) in a stock for stock transaction valued at up to $65 million, an approximate threefold premium over Surface’s anticipated net cash of $20 to $25 million at closing.

Surface Oncology is a clinical-stage immuno-oncology (I-O) company developing next-generation immunotherapies that target the tumor microenvironment. Surface Oncology’s share price rose 49% following the news.

Highlights

Coherus projects net product revenue of between $48 and 53 million in the second quarter of 2023.

The acquisition will significantly advance Coherus’ I-O pipeline with anti-IL-27 and anti-CCR8 clinical programs.

Surface Oncology shareholders will receive CVRs based on potential future payments for previously partnered assets and for potential licensing outside the US.

The transaction is expected to close in the third quarter of 2023.

About Coherus BioSciences

Coherus is a commercial-stage biopharmaceutical company focused on the research, development and commercialization of innovative immunotherapies to treat cancer. Coherus’ strategy is to build a leading immuno-oncology franchise funded with cash generated through net sales of its diversified portfolio of FDA-approved therapeutics.

In 2021, Coherus in-licensed toripalimab, an anti-PD-1 antibody, in the United States and Canada. The Biologics License Application for toripalimab in combination with chemotherapy as treatment for recurrent or metastatic nasopharyngeal carcinoma is currently under review by the FDA.

Coherus markets UDENYCA® (pegfilgrastim-cbqv), a biosimilar of Neulasta®, and CIMERLI®(ranibizumab-eqrn), a biosimilar of Lucentis®, in the U.S., and expects to launch the FDA-approved Humira® biosimilar YUSIMRY™ (adalimumab-aqvh) in the U.S. in July 2023.

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Coherus BioSciences to Acquire Surface Oncology; Transaction Valued at up to $65 million

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