Coherus BioSciences Acquires Small Immuno-Oncology Player Surface Oncology For $40M
Portfolio Pulse from Vandana Singh
Coherus BioSciences is acquiring Surface Oncology for $40 million, adding two clinical-stage assets to its immuno-oncology pipeline. The deal is expected to close in Q3 2023, with Surface implementing a 50% workforce reduction. Coherus expects Q2 2023 net product revenue of $48-53 million and FY23 net revenues above $275 million.
June 16, 2023 | 12:00 pm
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NEGATIVE IMPACT
Surface Oncology is being acquired by Coherus BioSciences for $40M, with a 50% workforce reduction and potential out-licensing of ex-US rights.
The acquisition by Coherus BioSciences will result in a 50% workforce reduction for Surface Oncology, which could negatively impact the company's operations. However, the potential out-licensing of ex-US rights to SRF388 and SRF114 could raise significant non-dilutive capital in 2024 and 2025. Overall, the short-term impact on SURF stock is likely to be negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Surface Oncology shareholders will receive CVRs for 70% of milestone and royalty-based value of existing programs with GSK.
The acquisition of Surface Oncology by Coherus BioSciences includes CVRs for 70% of milestone and royalty-based value of existing programs with GSK. This news is indirectly related to GSK and is not expected to have a significant short-term impact on GSK stock.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Surface Oncology shareholders will receive CVRs for 70% of milestone and royalty-based value of existing programs with Novartis.
The acquisition of Surface Oncology by Coherus BioSciences includes CVRs for 70% of milestone and royalty-based value of existing programs with Novartis. This news is indirectly related to Novartis and is not expected to have a significant short-term impact on NVS stock.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Coherus BioSciences acquires Surface Oncology for $40M, adding two clinical-stage assets to its pipeline and expecting increased revenues.
The acquisition of Surface Oncology adds two clinical-stage assets to Coherus' pipeline, which could lead to increased revenues and growth. The deal is expected to close in Q3 2023, and Coherus projects increased net revenues for FY23. This news is likely to have a positive short-term impact on CHRS stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100