Market reaction
Coherus BioSciences Inc. (NASDAQ:CHRS) experienced a sharp premarket decline of 14.5% on Friday after the company disclosed terms for a new public share offering. Management priced 28.6 million shares at $1.75 each, a level that represented a steep discount to the stock’s recent close and prompted the immediate sell-off.
Deal structure and timing
The company said the share sale is expected to bring in approximately $50.1 million in gross proceeds before underwriting discounts and commissions. Underwriters have been granted a 30-day option to acquire up to an additional 4.29 million shares at the same public offering price. The transaction is anticipated to close around February 17, 2026, subject to customary closing conditions.
Use of proceeds
Coherus intends to allocate the funds to support the ongoing commercialization of LOQTORZI (toripalimab-tpzi), its PD-1 inhibitor, to continue clinical development of its pipeline candidates, and to provide working capital and general corporate support.
Bookrunners
TD Cowen, Guggenheim Securities, and Oppenheimer & Co. are acting as joint bookrunners on the offering.
Company focus
Coherus Oncology is described by the company as a commercial-stage firm concentrating on oncology treatments. Its stated strategy includes expanding LOQTORZI sales in recurrent/metastatic nasopharyngeal carcinoma and pursuing new indications for the drug in combination with internal pipeline candidates and through partnerships.
Key points
- Shares fell 14.5% in premarket trading after Coherus priced a 28.6 million-share offering at $1.75 per share.
- The offering is expected to raise about $50.1 million in gross proceeds before fees; underwriters have a 30-day option for up to 4.29 million additional shares.
- Proceeds are earmarked for LOQTORZI commercialization, clinical development, and general corporate purposes; TD Cowen, Guggenheim Securities, and Oppenheimer & Co. are joint bookrunners.
Risks and uncertainties
- Shareholder dilution and downward pressure on the stock from the discounted public offering - directly affects equity holders and broader market perception of the company.
- Closing of the offering is subject to customary conditions, so timing and completion are not guaranteed - this creates execution risk impacting financing plans.
- Market reaction to the offering price may affect the company’s ability to raise capital on favorable terms in the near term, influencing investors and the healthcare/biotech sector.
What this means for markets
The immediate price reaction underscores investor sensitivity to sizeable equity raises priced below the prior market level. The announcement has implications across the healthcare and capital markets where biotech and oncology developers compete for financing to support commercialization and clinical programs.