Coherus BioSciences, Inc. (CHRS): A Bull Case Theory

We came across a bullish thesis on Coherus BioSciences, Inc. (CHRS) on Steve Wagner’s Substack. In this article, we will summarize the bulls’ thesis on CHRS. Coherus BioSciences, Inc. (CHRS)'s share was trading at $0.77 as of 30^th May. CHRS’s trailing P/E was 1.77 according to Yahoo Finance.

Coherus BioSciences (CHRS), long overlooked by Wall Street, is taking a bold step into innovative oncology by partnering with UK-based STORM Therapeutics to test a novel cancer treatment strategy. The collaboration brings together Coherus’s immunotherapy toripalimab (LOQTORZI) and STORM’s first-in-class RNA-modifying enzyme inhibitor STC-15 in a Phase 1b/2 clinical trial.

This unexpected pairing represents a fresh approach to immuno-oncology, targeting cancer through dual mechanisms that could produce synergistic effects. Toripalimab, already approved in the U.S. for nasopharyngeal carcinoma and under review for broader indications, offers proven checkpoint inhibition, while STC-15 introduces a cutting-edge method of disrupting RNA methylation processes linked to tumor growth and immune evasion. If this combo demonstrates efficacy, it could represent a completely new class of cancer therapy and place Coherus at the forefront of next-generation immuno-oncology innovation.

Importantly, this partnership shows strategic vision from CHRS’s management as they seek to differentiate the company beyond biosimilars and move deeper into proprietary immunotherapy. With the trial still in early stages and little market attention so far, the risk/reward profile for investors is potentially skewed to the upside. Should the data prove positive, the impact could be significant for both companies, especially for CHRS as it repositions itself as a serious player in oncology innovation. This under-the-radar development deserves close monitoring, as it could catalyze a major reevaluation of Coherus’s valuation and growth trajectory.

Previously, we have covered CHRS in March 2025 wherein we summarized a bullish thesis by the same author. Coherus BioSciences (CHRS) posted a strong turnaround in 2024 with $267M in revenue and $28.5M net income, driven by Loqtorzi's growth and the planned $250M Udenyca divestiture. The company pivoted fully to oncology, trimmed costs, and advanced its pipeline, yet management expressed frustration over the stock’s undervaluation, hinting at potential M&A. Since our last coverage, the stock is down 38% as of 30^th May.

We don't trust CHRS' management as the stock lost more than 95% of its value in recent years and is still losing a ton of money. The market agrees with us and thinks this stock is going to go bankrupt. We believe CHRS should stop wasting shareholder's money, sell valuable assets, and liquidate the company. We don't think that's a likely outcome.

Coherus BioSciences, Inc. (CHRS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held CHRS at the end of the first quarter which was 10 in the previous quarter. While we acknowledge the potential of CHRS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.