Early November 2018, the FDA approved a drug candidate by Coherus Biosciences Inc. (NASDAQ:CHRS). UDENYCA targets cancer patients and is the first from Coherus’ pipeline to receive a positive nod from both the FDA and the EC. To ramp up production and sales of the drug, the firm acquired funding from Healthcare Royalty Partners.
HealthCare Royalty extended credit in support of Coherus’ growth strategy
HealthCare Royalty Partners is a long partner of Coherus. The new agreement deepens that relationship further. According to Denny Lanfear, President, and CEO of Coherus, the round of funding bolsters their ability to feed the existing demand.
On the other hand, HealthCare Royalty Partners reiterated their commitment to helping Coherus achieve their objectives. Clarke Futch, the Managing Partner at HealthCare Royalty, said they have confidence in Coherus’ growth strategy. Notably, the firm has a robust pipeline which, if approved, Coherus will be a significant player in the biopharma sector.
As per the details of the agreement, the credit will mature in 2025. Afterward, Coherus will begin paying out interest based on a 3-month LIBOR in addition to 7% per year. Interestingly, the total amount paid out per year will include other surcharges like customary fees and final payment premium valued at 4% of the principal sum.
The addition of UDENYCA is likely to push costs down for patients
Interestingly, Coherus is counting on the low list price for UDENYCA to snatch up market share from competitors. According to Lanfear, competition is key toward keeping prices for vital drugs within an affordable reach for patients. Notably, a drug like Neulasta puts a $4 billion burden on American patients annually. Therefore, Lanfear hopes that with the current funding they received, the cost burden will lessen.
To further the sales of UDENYCA, Coherus partnered Apexus, LLC on 340B prime vendor terms. Notably, Apexus will push UDENYCA to the wide segment of the healthcare sector it covers. According to the official statement, Apexus will increase patient access to the product while pushing lower listing prices. This will be possible since the 340B channel will now have two drugs which give more choice to the patients.