Coherus BioSciences (NASDAQ:CHRS) stock is taking off on Monday after the biopharmaceutical company announced a $170 million divestment.
Coherus BioSciences is selling its CIMERLI ophthalmology franchise to Sandoz (OTCMKTS:SDZNY) for an upfront payment of $170 million. That payment will be made in cash, and the sale includes supporting commercial infrastructure for CIMERLI.
To go along with this, Coherus BioSciences will also sell all CIMERLI product inventory at a later date for additional funds. The sale is expected to close during the first half of 2024.
Denny Lanfear, chairman and CEO of Coherus BioSciences, said the following about the asset sale:
“We believe it is prudent to now monetize these non-core assets to pay down debt, reduce interest costs, and take the opportunity to focus on our core therapeutic area, oncology. Additionally, this divestiture will allow us to reduce our headcount and overhead costs, enhancing our sustainable and growing oncology business.”
CHRS Stock Reaction Today
CHRS stock is off to a strong start on Monday morning, with some 5.5 million shares changing hands as of this writing. That’s closing in on the company’s daily average trading volume of 7.1 million shares.
CHRS stock is up 16.8% during pre-market trading on Monday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
