Shares of Coherus Oncology (NASDAQ:CHRS) surged sharply on Friday, closing 35% higher following the launch of coverage by Oppenheimer with an Outperform rating and a $10 price target. This valuation marks a substantial increase from Thursday’s closing figure of $1.59, suggesting investors anticipate considerable growth potential in the oncology drug developer.
Jay Olson, an analyst at Oppenheimer, pointed to the company's promising development pipeline and upcoming clinical trial results as key drivers underpinning the optimistic outlook. The firm foresees notable catalysts through 2026, particularly from data relating to several cancer indications involving their lead anti-CCR8 antibody, tagmokitug, paired with Loqtorzi, a commercially in-licensed PD-1 inhibitor.
Olson highlighted Coherus Oncology's strategic position as a smaller-cap entity with an already approved PD-1 inhibitor, enabling efficient advancement of combination therapies internally. This attribute, he argued, differentiates Coherus from competitors lacking an established backbone therapy, potentially accelerating pipeline progression.
The analyst also noted that the company's anti-CCR8 treatment program benefits from validation through investments by major pharmaceutical firms in similar mechanisms. Furthermore, the anti-IL-27 antibody candidate casdozokitug, described as a promising early-stage asset, is expected to yield important data later this year, which may influence the company's valuation further.
Oppenheimer’s projections estimate that Coherus Oncology could achieve peak risk-adjusted revenue of approximately $1.4 billion, supporting the ambitious price target assigned. This forecast reflects a strong endorsement of the company’s clinical and commercial prospects.