Maxim Group Starts Coherus Biosciences (CHRS) at Buy

Maxim Group initiated coverage on Coherus Biosciences (NASDAQ: CHRS) with a Buy rating and a price target of $43. Analyst Jason McCarthy sees opportunity in biosimilars.

The analyst explained, "Biosimilars are coming as a wave of patent expirations breaks over the cliff, with over 30 biologics facing expiration before the end of the decade. It’s a $100B+ opportunity, and Coherus is on a path to drive at least three biosimilars to market ($30B opportunity) over the next several years: CHS-1701 (Neulasta, BLA filed), CHS-1420 (Humira, BLA filing YE16) and CHS-0214 (Enbrel, MAA filing YE16)."

McCarthy added, "Biosimilars could eventually rise to 50%-plus share of the market. Timing of commercialization is dependent on patent litigation, where we believe Coherus has a strategic advantage over competing biosimilars. We estimate that each Coherus biosimilar could capture up to 20% share in its respective market, representing a multibillion dollar opportunity for Coherus and its partners, pointing to upside at CHRS's current valuation."

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 $30.81 yesterday.

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