Coherus BioSciences (ticker “CHRS”) is undervalued by a factor of more than 3X versus its nearest like peer/comparable Momenta Pharmaceuticals (ticker "MNTA"). Furthermore CHRS is already quite profitable (trading at 2.5X annualized revenues and ~6X annualized EBITDA) where MNTA is still losing hundreds of millions/year (NOTE: the author did not otherwise review MNTA in any detail outside of cursory valuation metrics). Most important, CHRS offers compelling short and long-term revenue gain opportunities over the next 1 to 4 years and, at its current valuation, minimal downside risk. This is primarily because its first biosimilar product is such a success, and should continue to be a success for another 2 years, it practically insures investors should CHRS's second product disappoint (again of four more biosimilar products slated to hit the market in the next 5 years).
CHRS is a commercial biotechnology company focused on the emerging biosimilar industry. A biosimilar is essentially a copy of an existing biologics therapy or drug. A biologics biosimilar is like a traditional “generic” drug (only in layman terms). A generic drug is identical to a branded drug (the “ingredients” and formulation((s)) are identical). Because biosimilars are technically "biologics" the raw materials, molecules and manufacturing processes are much more complex. For a biosimilar to be approved, the manufacturer does not need to show the FDA that the ultimate product will be “identical” but “biosimilar.” The most common example provided is when a biosimilar uses human cell lines… cell lines will never be identical (like DNA is never identical)… but the ultimate biologics profile will be "similar" enough to produce virtually identical clinical outcome((s)).
CHRS is located in Redwood City California, was founded in 2010 primarily by former employees of Amgen and went IPO in 2014. CHRS, like any biosimilar company can either develop and sell their own biosimilar biologics
