UPDATE: Credit Suisse Starts Coherus Biosciences (CHRS) at Outperform

(Updated - December 2, 2014 1:24 PM EST)

Credit Suisse initiated coverage on Coherus Biosciences (NASDAQ: CHRS) with a Outperform rating and a price target of $22.00.

Analyst Ravi Mehrotra said, "Coherus is the leading "biosimilar pure play" publically traded company, having recently IPO'ed in early November at $13.50/share. The key attributes for the company are an extremely seasoned management team and concomitant regulatory and analytical experience/knowledge. The company's lead assets are both anti-TNFs which are in/about to enter PIII trials: CHS-1420 (Humira Biosimilar) – BLA expected in 2015 for which Coherus retains WW rights and CHS-0214 (Enbrel biosimilar) with a MAA expected in 2016 and is partnered with Baxter and Daiichi-Sankyo for EU and Japan, respectively."

"We acknowledge that the "trail blazing" nature of biosimilar pioneers, such as Coherus, and the inherent regulatory uncertainty/potential patent related litigation surrounding biosimilar approvals, influences near term investment risk. Our DCF-derived TP of $22 assumes: (1) CHS-1420 (Humira biosimilar) is launched in the US and EU in 2017/18. We model worldwide CH-1420 peak sales of ~$820M in 2024. (2) CHS-0214 (Enbrel biosimilar) is launched ex-US in 2017. We assume a 12% royalty rate and model peak ex-US royalties of $45M from Baxter and Daiichi Sankyo. We risk weight our cash flows by 50%. We do not assign a terminal value, and we have not included Coherus' other pipeline in our DCF," he added.

For an analyst ratings summary and ratings history on Coherus Biosciences click here. For more ratings news on Coherus Biosciences click here.

Shares of Coherus Biosciences closed at $13.37 yesterday.

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