Coherus Oncology plans to reduce its workforce by approximately 30% and narrow its cancer drug development pipeline as part of a restructuring aimed at reducing costs. CEO Denny Lanfear said the company believes focusing on growing Loqtorzi market share can provide a path to financial self-sufficiency.
The biotech said Nov. 9 it will prioritize development of tagmokitug in combination with toripalimab for esophageal cancer while deprioritizing other indications. The company plans to work with the FDA on an expedited development pathway, initially targeting second-line esophageal cancer.
Interim data from the company’s Phase 1b/2a TREGCHECK program showed a confirmed overall response rate of 33.3% and a clinical benefit rate of 55.6% in second-line esophageal cancer. The analysis covered 22 treated patients, 13 of whom were evaluable.
Coherus expects the restructuring and narrower development focus to reduce core cash burn by $6 million to $7 million per quarter, with the benefits realized over the next two quarters. The company also lowered its quarterly Loqtorzi revenue target needed to cover core cash burn to $25 million to $30 million, down from $30 million to $35 million.
The restructuring comes as Coherus reported $14.0 million in third-quarter Loqtorzi revenue, a 25% increase from $11.2 million a year earlier. Loqtorzi is the company’s approved PD-1 inhibitor for nasopharyngeal carcinoma. Its third-quarter net loss from continuing operations narrowed to $38.9 million from $44.5 million in the same period last year.
Cash, cash equivalents and marketable securities totaled $83.6 million as of Sept. 30, down from $172.1 million at the end of 2025.
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