Coherus Resumes Biosimilar Supply Following Temporary Disruption; Novavax Terminates COVID-19 Vaccine Deal with UK

Coherus BioSciences Resumes Biosimilar Supply:

Coherus BioSciences has restarted the supply of its biosimilar UDENYCA after a temporary disruption caused by over-commitments and capacity constraints at its third-party Contract Manufacturing Organization (CMO) for final labeling and packaging.
The supply issue was expected to deplete channel supply by mid-October, but manufacturing resumed in mid-October, with product availability projected to resume in early November.

Novavax Ends COVID-19 Vaccine Deal with UK:

Novavax has terminated its COVID-19 vaccine deal with the UK, marking a significant change in its vaccine distribution strategy.

Coherus' Supply Chain Investments:

Coherus has invested over $30 million since 2021 to diversify and expand its supply chain, aiming to double drug substance manufacturing capacity, significantly increase drug product fill manufacturing capacity, and more than double UDENYCA packaging and labeling capacity.
These investments are projected to reduce UDENYCA production costs by about one-third.

Financial Impact:

Coherus' share price dropped by 24% following the announcement of the supply issue, reflecting investor concerns over the temporary disruption.
Despite this, Coherus reaffirmed its 2024 R&D and SG&A expense guidance, expecting it to range between $250 to $265 million.