Coherus picking up oncology antibodies in Surface acquisition

The $65 million deal will strengthen Coherus BioSciences’ innovative pipeline with two antibody oncology candidates.

With versions of Amgen’s Neulasta (pegfilgrastim) and Novartis’ Lucentis (ranibizumab) on the market, Coherus could be mistaken for a biosimilars company. That was the case up until 2021 when the firm acquired the North American rights to the anti-PD-1 antibody toripalimab through a $150 million deal with Shanghai, China-based Junshi.

And now the firm is doubling down on innovative immuno-oncology (IO) drugs, with the proposed purchase of Surface Oncology in a stock for stock transaction worth $65 million.

“This transaction is well-timed, as it coincides with the accelerating growth of our biosimilar revenues driven by the launch of Cimerli [the Lucentis biosimilar] and near-term launch of Yusimry [an approved, but not yet launched version of AbbVie’s Humira (adalimumab)],” Denny Lanfear, Coherus CEO, said.

“With the agreement to acquire Surface and the expected near-term approval of toripalimab, Coherus is positioned to become one of the very few IO companies with demonstrated commercial expertise, significant product revenues, and unique, competitively positioned R&D programs addressing critical unmet medical needs.”

The two assets Coherus will add when the deal closes (expected Q3 2023) are SRF388, an IL-27 targeted antibody in Phase II trials for lung cancer and liver cancer, and SRF114, a high affinity, fully human IgG1 antibody currently in a Phase I trial for solid tumors.

Combined with Coherus’ toripalimab, the combination “presents a rare opportunity for two complementary organizations to join together and forge something that is greater than the sum of its parts,” said Surface’s CEO Rob Ross.

“By augmenting Coherus’ existing capabilities and infrastructure with Surface’s innovative pipeline and deep I-O expertise, Coherus is well positioned to develop important I-O medicines for patients which deliver real value for the shareholders of both companies.”