Coherus Oncology paired its third-quarter 2026 results with a strategic reset: it will concentrate development of tagmokitug with LOQTORZI on esophageal cancer, while scaling back work in other indications. The company also plans to cut its workforce by about 30%, saying the changes will lower operating costs as it focuses on growing sales of LOQTORZI, its approved treatment for nasopharyngeal cancer.
Key details
-
Esophageal cancer becomes the lead development focus. Coherus plans to continue studies in first- and second-line esophageal squamous cell carcinoma (ESCC) and second-line esophageal adenocarcinoma (EAC). It will deprioritize other tagmokitug–toripalimab treatment groups presented in an October 28 data update.
-
The company plans a new second-line esophageal cancer study. Coherus intends to discuss the study design and a proposed 700-milligram dose with the FDA, with the aim of pursuing an expedited development path. It says the initial focus is the second-line setting.
-
Early clinical results underpin the prioritization. Across the second-line ESCC and EAC cohorts, 22 patients had been treated and 13 were evaluable. Coherus reported a confirmed overall response rate of 33.3% and a clinical benefit rate of 55.6%; its presentation also cited median progression-free survival of 5.5 months. The company described the activity as promising, but the results are from an interim, early-stage study.
-
The workforce reduction is intended to lower costs. Coherus expects the changes to reduce quarterly core cash burn by $6 million to $7 million, with the savings realized over the next two quarters. It lowered the level of quarterly LOQTORZI revenue it says is needed to cover core cash burn to $25 million to $30 million, from its prior range of $30 million to $35 million.
-
LOQTORZI sales continued to grow. Net revenue for the drug was $14.0 million in the third quarter, up 25% from $11.2 million a year earlier and 3% from $13.6 million in the second quarter. Coherus said demand growth reflected more patients on treatment and longer treatment duration. It is targeting increased market share against chemotherapy-only treatment and off-label immunotherapy use in nasopharyngeal cancer.
-
Total continuing-operations revenue also rose. Coherus reported net revenue of $14.3 million for the quarter, compared with $11.6 million a year earlier. For the first nine months of 2026, it reported $40.9 million, versus $29.4 million in the same period of 2025.
-
Other clinical programs remain active. Coherus plans to proceed with a Phase 1b study combining tagmokitug and pasritamig in metastatic castration-resistant prostate cancer, which it expected to start in fall 2026. Enrollment is complete in a Phase 2 study of casdozokitug, toripalimab and bevacizumab for first-line unresectable liver cancer; the company expects an initial readout in the first half of 2027.
Plain-English implications
The plan narrows near-term development spending around esophageal cancer and reduces the company’s cost base, while leaving selected studies in prostate and liver cancer underway. Coherus is also seeking to grow LOQTORZI sales; its stated cash-burn coverage target remains above the drug’s third-quarter revenue of $14.0 million.