Q1 2023 Coherus BioSciences Inc Earnings Call
Participants
Dennis M. Lanfear; Chairman, President & CEO; Coherus BioSciences, Inc.
Marek Ciszewski; SVP of IR; Coherus BioSciences, Inc.
McDavid Stilwell; CFO; Coherus BioSciences, Inc.
Paul Reider; Chief Commercial Officer; Coherus BioSciences, Inc.
Rosh Dias; Chief Medical Officer; Coherus BioSciences, Inc.
Theresa M. Lavallee; Chief Development Officer & Chairman of Scientific Advisory Board; Coherus BioSciences, Inc.
Ashwani Verma; Director of Americas Equity Research & US Specialty Pharma Analyst; UBS Investment Bank, Research Division
Bhavin Patel; Team Developer; BofA Securities, Research Division
Christopher Thomas Schott; Senior Analyst; JPMorgan Chase & Co, Research Division
Douglas Dylan Tsao; MD & Senior Healthcare Analyst; H.C. Wainwright & Co, LLC, Research Division
Michael Thomas Nedelcovych; Research Associate; TD Cowen, Research Division
Robyn Kay Shelton Karnauskas; Research Analyst; Truist Securities, Inc., Research Division
Salim Qader Syed; MD, Senior Biotechnology Analyst of Equity Research & Head of Biotechnology Research; Mizuho Securities USA LLC, Research Division
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Coherus BioSciences Q1 2023 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker, Marek Ciszewski of Investor Relations for Coherus BioSciences. Please go ahead.
Marek Ciszewski
Thank you, Crystal, and good afternoon, everyone. And thank you for joining us. We issued a press release earlier today announcing our financial results for the first quarter of 2023. This release can be found on the Coherus BioSciences website and is also attached to our Form 8-K. .
Today's call includes forward-looking statements regarding Coherus' current expectations about future events. These statements include, but are not limited to, our ability to gain approval for multiple new products and launch them, the ability of the FDA to complete all required inspections in China or our BLA for toripalimab necessary for approval, expectations about demand, timing of our ability to gain market share for any of our approved products, expectations about future revenues and expenses and the timing of any return to profitability. All these forward-looking statements involve substantial risks and uncertainties that are beyond our control and could cause actual results, performance or achievements to differ from those implied by forward-looking statements.
These statements are not guarantees of future performance and are subject to substantial risks and uncertainties that are discussed in our press release that we issued today as well as the documents that we file with the SEC. Forward-looking statements provided on the call today are made as of this date, and we undertake no duty to update or revise any forward-looking statements. First quarter 2023 results are not necessarily indicative of results for future periods.
With me on today's call are Denny Lanfear, our CEO; Dr. Theresa Lavallee, Chief Development Officer; Dr. Rosh Dias, Chief Medical Officer; Paul Reider, Chief Commercial Officer; and McDavid Stilwell, Chief Financial Officer. And I will now turn the call over to Denny.
Dennis M. Lanfear
Thank you, Marek, and thank you all for joining us on our Q1 2023 call. In Q1, we set the stage for revenue growth over the rest of the year as we plan for and execute multiple product launches across our diversified pipeline throughout 2023, transitioning from a single product company, one with 6 products or presentations, including our first immuno-oncology agent, toripalimab. This quarter, we executed strongly on the launches and growth catalysts in support of emerging pipeline.
The progress includes, first, the Q-code for CIMERLI, which was implemented at the beginning of April. Demand is now increasing as expected. UDENYCA autoinjector is now ready for launch later this month, a key driver for market share increase this year. We are ready to launch YUSIMRY, our Humira biosimilar, in July, having gained all the requisite approvals and built inventory. Manufacturing facility inspection to support toripalimab approval is now scheduled for later this month, May. We expect the approval and launch of UDENYCA on-body injector later in 2023, strengthening the franchise positioning and driving additional share gains.
Following my opening remarks, Paul Reider, our Chief Commercial Officer, will update you on the impact of the CMS signed Q-code on CIMERLI sale starting the second quarter, which we expect to drive sales starting in Q2 and accelerate revenue growth throughout 2023. I will then further update you on the Q1 2023 UDENYCA sales and our launch plans for our newly approved UDENYCA autoinjector.
Dr. Theresa Lavallee, our Chief Development Officer, will update you on the status of the toripalimab inspections, the BLA review and our progress on bringing tori manufacturing to the U.S. along with other pipeline development. Chief Medical Officer, Dr. Rosh Dias, will then update on the new toripalimab clinical data being presented at ASCO as well as progress on our TIGIT-toripalimab combination studies and our ILT4 program.
As you know, we've been very tightly focused on actively managing expenses without jeopardizing our product sales potential. And McDavid Stilwell, our Chief Financial Officer, will provide you some additional detail on measures taken during Q1 to reduce operating expenses, sharpen our focus on ensuring the success of our product launches, key revenue drivers that we anticipate will return the company to profitability in 2024.
And with that, I'll turn the call over to Paul Reider, our Chief Commercial Officer. Paul?
Paul Reider
Thank you, Denny, and good afternoon. I'll provide you with an update this afternoon on the expansion of our commercial product portfolio, the potential launches of 4 products in 2023 we expect to drive top line revenue growth this year going forward. .
I'll start with CIMERLI, our fully interchangeable Lucentis biosimilar launched in the fourth quarter last year. Our strategic approach to the market is to, first, maximize the conversion existing Lucentis business, which currently represents 1 million units annually; and second, grow share through new patient starts or conversion from other anti-VEGF products.
While the complete label with interchangeability has been well received by retinal specialists, giving them the confidence that they can safely transition currently treated Lucentis patients to CIMERLI expect the same clinical outcomes. Use of the miscellaneous J-code has hindered adoption and conversion. Billing under a miscellaneous code is prone to errors, interrupting payment flows, and even if executed correctly, could result in payment delays of 2 months or more, which disrupts practice cash flows. We expected a slower start CIMERLI sales until the activation by CMS of our permanent product-specific Q-code, which enables electronic automated billing, thus providing faster payments with much higher certainty.
Accordingly, we focused our efforts in Q1 when obtaining the permanent Q-code from CMS and getting it deployed across ophthalmology practices and payers. Those efforts are bearing fruit. The payer front, as of April 30, over 90% of target payers have confirmed loading the Q-code. With respect to billing and reimbursement using the Q-code, numerous providers have reported receiving full reimbursement within 14 days of electronic billing.
We are now seeing the expected increase in demand. Through the month of April, we've shipped over 7,200 demand units, which represents about 72% of the entire Q1 2023 unit sales.
Also during Q1, we doubled the number of accounts that have ordered CIMERLI to 185. And of those, 54% have reordered. Among these ordering accounts, CIMERLI market share was 20%, which reinforces the potential of CIMERLI once accounts begin adopting.
As momentum built in Q1 prior to deploying the Q-code, doctors are reporting that they are seeing the same clinical outcomes for CIMERLI that they would expect to see with Lucentis. So CIMERLI has successfully established an excellent safety and efficacy track record with retinal specialists. This helped fuel the doubling of demand in Q1, resulting in an average ranibizumab market share for the quarter of 4.1% compared to 2.4% in the prior quarter.
At the same time, inventory levels on hand were higher at year-end, given Q4 was the launch quarter and have begun to normalize. And for the first quarter, sales of CIMERLI was $6.2 million compared to $6.95 million for Q4. Reordering reflects new patient starts and conversion from other products. And with the chronic nature of the disease and frequency of injections, this results in a compounding growth trajectory. Therefore, we continue to expect that in 2023, CIMERLI revenues will exceed $100 million.
I'll now turn to our oncology franchise, starting with UDENYCA and the launch plans for the 2 new presentations this year. As you know, the pegfilgrastim prefilled syringe segment is increasingly competitive as reflected by continued price erosion. Accordingly, our strategy is not to compete solely on price but to launch additional presentations that provide a differentiated value proposition to patients and providers, filling the unmet needs in the market with the objective to regain share.
The past year, we told you that we would sacrifice share to preserve pricing power for these future presentation launches as all product presentations are linked to the same average selling price, and we maintain a strong ASP on which to launch our 2 new innovative presentations this year. We plan to launch UDENYCA autoinjector later this month. This presentation represents the first innovation in the pegfilgrastim class 8 years, and customer receptivity has been overwhelmingly positive. This confirms that there is a large market segment unserved by Neulasta Onpro, the on-body device, which still retains 43% of the margin.
The UDENYCA autoinjector provides convenience, administration flexibility, independence and certain delivery in under 10 seconds. The autoinjector thus provides providers and patients a highly desired alternative to Onpro and has the potential to drive market share increase over the coming quarters.
Q1 2023 was our last quarter competing with 1 undifferentiated presentation. UDENYCA net sales were $26 million, declined from the prior quarter, resulting from 4 key factors: First, a market share decline of 1% from the prior quarter to 11.5%; a 9% decline in net selling price required to maintain a competitive position in prefilled syringe segment; higher wholesale inventory levels at the end of Q4, which have now normalized; and finally, a nonrecurring $1.7 million charge resulting from a contingent liability arising from a dispute.
Going forward, we believe the UDENYCA franchise is well positioned to regain market share beginning the second half of 2023. UDENYCA is now the only pegfilgrastim brand in both prefilled syringe and autoinjector presentations. Later this year, if the on-body injector is approved, we will be the only pegfilgrastim brand with all 3 product presentation. This will provide a path for maximum market penetration and market share growth this year and beyond.
We expect our next oncology launch to be toripalimab, if approved, and we cover some of our launch plans next. Launching the company's first immuno-oncology product is a critical step forward in the advancement of our bio franchise. Our mission is to extend cancer patient survival and to offer new hope to patients, and nasopharyngeal carcinoma is an excellent example.
Today, NPC patients have no FDA-approved treatments, including IO therapies, and therefore, constitutes a high unmet need. Toripalimab is a next-generation PD-1 inhibitor and if approved, will be the first and only PD-1 inhibitor in the U.S. indicated for relapsed metastatic nasopharyngeal carcinoma, establishing a new standard of care in all lines of therapy, including first line.
As such, we feel confident that toripalimab plus chemo will gain a dominant market share and estimate the NPC market opportunity could reach $200 million at peak. Preparation for toripalimab's commercial launch, we are executing on a number of prelaunch activities. We created and launched npcfacts.com, which is designed to be a primary source of disease state information for patients and their caregivers to learn about NPC. The sister site for health care professionals was also launched. Npcfacts.com allows patients and their caregivers to join our community, enabling us to share disease state education that is tailored to each patient at each stage of NPC disease progression.
Our aspiration is to identify and appropriately engage with all NPC patients in the U.S. by the end of the year. We continue to train our oncology sales force so they will be ready at launch to educate doctors of toripalimab's differentiated mechanism of action and the impressive patient survival benefit demonstrated at NPC, irrespective of PD-L1 expression status.
Finally, we will launch a peer-to-peer educational program featuring the nation's leading opinion leaders in the field of head and neck cancers and NPC, and we look forward to engaging with these KOLs at the upcoming ASCO.
A sub-modest marketing investment will be required to identify patients and educate physicians and providers on the benefits of toripalimab. Our oncology commercial capabilities were built to scale with significant overlap between UDENYCA customers and toripalimab targeted prescribers. Therefore, the launch of toripalimab is being efficiently integrated into our existing oncology commercial infrastructure. We are ready to launch toripalimab upon approval and expect to successfully address the entire NPC patient population across all lines of therapy and irrespective of PD-L1 expression status.
I'll end with YUSIMRY, our Humira biosimilar, which is on track to launch in July. Market feedback confirms that price, robust supply and product presentation are the key criteria used to making formulary decisions, and YUSIMRY is well positioned to compete on each of these criteria. YUSIMRY will have a state-of-the-art autoinjector presentation. It includes our proprietary nonstinging citrate-free formulation and a 29-gauge needle for maximum patient comfort.
We will have substantial supply volumes at launch with hundreds of thousands of YUSIMRY units ready for distribution in July. We are confident in our ability and our commercial approach, and we look forward to updating you in more detail on our strategy on our August call after we launch.
In summary, we are now at the inflection point of our growth story with 5 ongoing and new product launches to drive top line revenue over the next 3 years.
I'll now turn the call over to Theresa Lavallee. Theresa?
Theresa M. Lavallee
Thank you, Paul, and good afternoon, everyone. Let me begin with an update on our toripalimab inspections and projected approval. As you know, due to COVID travel restrictions in China, the PDUFA date was missed for toripalimab NPC application in December 2022. In January, the travel restrictions related to the COVID-19 pandemic were eliminated, and the inspection is now scheduled for the second half of this month, May. We wish to thank our partner, Junshi BioSciences, for their thorough and diligent preparation efforts to make the inspection of success. .
With respect to the sufficiency of the clinical data to support the NPC BLA, we note again that the FDA granted toripalimab breakthrough therapy designation as there are no approved treatments for NPC. The agency has consistently recognized this unmet need and stated NPC warrants regulatory flexibility. The review of the BLA is now substantially complete. The FDA conducted an extensive remote regulatory clinical assessment and did not identify any deficiencies. We continue to work with FDA to complete the clinical site inspections.
Toripalimab is a next-generation PD-1 with a differentiated mechanism of action and has demonstrated an impressive survival benefit in multiple tumor types in combination with chemotherapy, irrespective of PD-L1 status. Based on these observations, we conducted mechanistic studies to better understand the basis of this differentiation. We have just completed preclinical studies for journal submission, demonstrating that toripalimab has higher potency on T cell activation compared to pembrolizumab. These data further support the evolving understanding and appeal that PD-1 antibodies are not all the same or necessarily equivalent. And we plan to present our findings at a scientific meeting later this year.
We believe that this makes toripalimab an ideal foundation for our IO pipeline as well as a combination agent for non-Coherus novel compound. Thus, we are actively seeking additional development opportunities to expand toripalimab use beyond NPC, with combinations, as Dr. Dias will describe.
I'm also pleased to report that Coherus' regulatory and manufacturing teams continue to execute at a very high level. In the first quarter, we gained approval for the YUSIMRY autoinjector as well as the facility change for large-scale manufacturing. Additional approvals included the UDENYCA autoinjector presentation, the fourth approval of the quarter. UDENYCA BLA supplement for the on-body injector presentation is progressing well, and we look forward to approval this year.
Lastly, regarding tech transfer of the toripalimab manufacturing to the United States, I can report that we've recently successfully completed the large-scale engineering rent needed to onshore manufacturing supply. We plan to execute the process qualification lots this fall and have prioritized these efforts.
I'll now turn it over to Dr. Rosh Dias, our Chief Medical Officer, for a clinical update on the Coherus IO pipeline. Rosh?
Rosh Dias
Thanks very much, Theresa, and good afternoon, everyone. Toripalimab continues to form the backbone of our immuno-oncology franchise. We believe that the publication of pivotal data across nasopharyngeal carcinoma, non-small cell lung cancer,and esophageal squamous cell carcinoma in top-tier journals, continuing positive data sets being released across multiple tumor types, together with its differentiated mechanism of action, will position toripalimab effectively as a partner of choice of combinations.
Several toripalimab data sets across multiple tumor types and tumor settings have been accepted for presentation at the upcoming ASCO 2023 Annual Meeting. These include data in non-small cell lung cancer with final overall survival and biomarker analogies for CHOICE-01, the first-line non-small cell study, as well as event-free survival data for NEOTORCH in the perioperative treatment of Stage II/III non-small cell lung cancer being presented. Metastatic or recurrent triple-negative breast cancer PFS data will be presented from the TORCHLIGHT study.
We will also be presenting the final overall survival analysis of JUPITER-02, a registration study in the first-line treatment for recurrent or metastatic NPC on Monday, June 5, which shows clinically and statistically significant results. This will build upon the positive progression-free survival data presented in Nature Medicine in 2021 and at the 2021 ASCO plenary session and which forms the basis of our BLA submission in NPC.
With respect to our internal pipeline, we remain excited about our Phase I/IIa toripalimab-TIGIT study, which is currently active in the U.S. with anticipated results next year. In addition, our ILT4 asset remains on track as we proceed towards IND submission towards the end of this year.
I'll now turn it over to David Stilwell, our Chief Financial Officer. David?
McDavid Stilwell
Thank you, Rosh. Today, we reiterate our prior financial guidance for 2023. We project revenue growth from accelerating CIMERLI sales and with the launches this year of toripalimab and YUSIMRY and the UDENYCA autoinjector and on-body injector. For the full year, we expect to book at least $275 million in net sales, with at least $100 million of CIMERLI net product revenue.
In the first quarter, we took measures to reduce operating expenses with a reduction in force and the rescoping of the toripalimab joint development.plan. Along with other measures we implemented last year, we have significantly reduced expected 2023 R&D and SG&A expenses to a range of $315 million to $335 million. This range excludes nonrecurring milestones in upfront payments, and it includes approximately $50 million in noncash stock compensation expense.
During the start of the year, we requested and obtained a waiver for the revenue covenant of our term loan through the first 2 quarters of 2023, recognizing that the CIMERLI Q-code would not be available until April 1 and that the UDENYCA autoinjector would not launch until May.
For my review today of first quarter financial results, I'll touch on just a few highlights as the details are in the press release, 8-K and 10-Q we filed this afternoon. Net loss for the first quarter of 2023 was $75.7 million or $0.96 per share on a diluted basis compared to a net loss of $96.1 million or $1.24 per share on a diluted basis for the same period in 2022. We incurred approximately $4.9 million to nonrecurring charges in connection with the restructuring in March 2023.
Net revenue for the first quarter of 2023 was $32.4 million and included $26.2 million of net sales of UDENYCA and $6.2 million in net sales of CIMERLI.
Net sales of UDENYCA were reduced by a $1.7 million charge for a contingent liability related to resolving a dispute. Net revenue declined compared to the same quarter 1 year ago ergo, primarily due to a decrease in the number of units of UDENYCA sold as well as a lower net realized price. Cost of goods sold was $16.9 million during the first quarter of 2023.
Recall that UDENYCA COGS includes a mid-single-digit royalty on net sales payable through the first half of 2024 and CIMERLI COGS includes a low to mid-50% royalty on gross profits. COGS in the first quarter of 2023 included two nonrecurring items, a $3 million contract modification fee with one of our manufacturers and a $2.7 million write-off of inventory that was damaged during processing at one of our manufacturers.
Research and development expense for the first quarter of 2023 was $34.2 million, significantly lower than the year ago quarter when we reported $47.9 million in R&D expenses after excluding a $35 million license fee paid to Junshi BioSciences for the TIGIT-antibody, CHS-006.
R&D expense for the first quarter of 2023 included $3.6 million in costs associated with the recent reduction in force. Selling, general and administrative expense for the first quarter of 2023 was $49.2 million, roughly equivalent to the $48.8 million in SG&A expenses for the same period in 2022. SG&A expenses are primarily driven by commercialization activities to support current UDENYCA and CIMERLI sales and costs incurred in preparation for multiple anticipated new product launches in 2023. SG&A expense for the first quarter of 2023 included $1.3 million in costs associated with the recent reduction in force.
Cash, cash equivalents and investments in marketable securities were $128.1 million as of March 31, 2023 compared to $191.7 million at year-end. Cash burn was elevated in the first quarter of 2023 by headcount related costs specific to the quarter and was further impacted by introductory payment terms for the CIMERLI launch, which delayed cash receipts for product sales. We expect the timing of cash receipts to normalize in the second half of the year.
In 2023, we are focused on ensuring the success of our new product launches and generation of the anticipated revenue growth. we will continue to maintain tight control over our operating expenses as we aim toward a potential return to profitability in 2024.
I'll now turn the call back to Denny.
Dennis M. Lanfear
Thank you, McDavid, and thank you all for joining us on our Q1 2023 earnings call.
Now that the CIMERLI Q-code is active and we're to beginning to see the impact in the second quarter, we look forward to accelerating CIMERLI sales throughout the year.
On the UDENYCA front, our launch later this month of a new innovative product presentation, UDENYCA autoinjector, will provide patients and physicians with a unique option to differentiate UDENYCA in the pegfilgrastim market, driving share gains.
Development of our immuno-oncology franchise is progressing well. Toripalimab, our foundational asset and anchor, continues in study after study to demonstrate strong efficacy and safety across multiple tumor types. For the next-generation of PD-1, it positions Coherus ideally as the partner of choice for those developing combination treatments with their own proprietary agents and a number of cancers. With the manufacturing inspection scheduled this month, we're optimistic that approval in the first indication nasopharyngeal cancer will occur in Q3.
Lastly, through the thoughtful and disciplined cost and expense control, we've significantly reduced our 2023 expenses by about $100 million to about $325 million and will continue to look for more efficiencies and savings as we progress our efforts to drive revenue increases while controlling expenditures to achieve profitability in 2024.
Operator, we are ready for the questions.
Question and Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Robyn Karnauskas of Truist Securities.
Robyn Kay Shelton Karnauskas
Congrats on getting the manufacturing inspection. That's great news. So I have two sets of questions. I'll be really brief. So on tori, it seems like there was a press release by your partner, Junshi, around small cell lung cancer, which has typically been very difficult to treat with checkpoint inhibitors, given it's a cold tumor. So I had a few questions on that.
What are your thoughts on like why tori worked given -- is it the differentiated epitope and MOA, do you think, is driving the response? And then how does this change your overall strategy with tori? You talked about partnering going forward. It seems like this would be a pretty big deal if it works in SCLC. So talk a little bit about how much collaboration interest there is and how aware people are of this new data set. And then I have one on UDENYCA.
Dennis M. Lanfear
Thank you, Robyn, for that question. Yes, we were very pleased to see the small cell data announcement this morning. I'll let Dr. Lavallee address the issues of mechanism of action of toripalimab. Subsequently, I'll have Dr. Dias address your secondary question, which is of the potential combination in these other indications, including small cell agents. Theresa?
Theresa M. Lavallee
Yes. Thanks, Robyn. We are excited to see another positive Phase III clinical study with toripalimab and particularly in a difficult tumor that has not shown benefit with some other PD-1 antibodies. This positive survival results are consistent with our preclinical studies showing that toripalimab has more potent activation of T cells compared to pembrolizumab. And I think that really sets it up well to really think about combinations. I'll let Rosh expand further.
Rosh Dias
Yes. Thanks, Theresa, and thanks, Robyn, for the question. So I think you're quite right. First of all, looking at small cell lung cancer, I think there's a real unmet need here. It represents about 15% to 20% of all lung cancers, extensive stage, continues to have a poor prognosis, and the current therapies that are out there continue to have marginal benefit.
So with that in mind, I think we are very excited about the benefits in both PFS and [OS stage] as, I think, you know, were co-primary endpoints. And I think if we look at the overall space, we -- I think this stage set continues to add to the breadth of the data available across multiple different tumor types. As we mentioned for lung alone, we have CHOICE-01 now in non-small cell lung cancer, we have NEOTORCH in perioperative and now small cell lung cancer all showing positive results. I do think that this sets us up really well for combinations across small cells, but also other forms of lung cancer and then also additional genotype without additional data set.
Dennis M. Lanfear
Robyn, just an additional remark with respect to this. When we selected toripalimab from a broad array of available PD-1 agents some 3 years ago, we consistently saw it outperforming other agents, such as pembro and various in vitro and cell-based studies, although we didn't quite understand all the implications of it now. I think it's very rewarding, first of all, to see the mechanism of action story readout, as Dr. Lavallee indicated. But it's also now very rewarding to see this readout in several cancers where toripalimab continues, as we said, to demonstrate really a very potent track record here as far as efficacy.
With that, I think you had a follow-up question on UDENYCA, perhaps, you said.
Robyn Kay Shelton Karnauskas
Yes. And one small one. I mean, given that it's an Asian-based study, I mean, I'm sure that doctors will be super excited to see the detailed data. Do you have any sense, whether it be in a publication or presentation, on that?
And the UDENYCA question is really about the autoinjector and the fact that you're going to have the autoinjector or the on-body device and the prefilled syringe. I'm just trying to get a better sense of how do payers view the autoinjector, what are you getting as an early read on the interest for this autoinjector and that's being differentiated now. And then it's really -- so given you have 3, and just help us tease out like how do we think about these 3 products taking share in different markets.
Dennis M. Lanfear
Thanks. That's a great question. So I'll let Paul frame that out for you. First of all, what the differentiated value proposition is for the autoinjector compared to the various dosage forms, which are on the market today. And then secondarily, some of the progress that we're making with the payers on that front. Paul?
Paul Reider
Robyn, thanks for your question. Yes, we're excited to launch the autoinjector later this month, and we expect it will cause some market share stabilization this quarter and then really increase growth in the second half of the year. I think what the autoinjector enables us to do in the market is to now compete in both the in-clinic segment against the competitive prefilled syringe competitors. But it also enables us to now compete more effectively in the at-home segment, where Onpro still has 43% share. And it will do that because of the patient benefits. There's really 3 important ones.
First is the autoinjector will give patients more dependence over their injection experience. So essentially, they'll be able to inject when and where they desire. And the second is ease of use. So this can be delivered in less than 10 seconds as opposed to where the on-body for an entire day and navigating through a 45-minute injection time. And then the third is flexibility. So the patients who live far away or can't come back to the office can simply do this at home. So we believe it's going to be able to penetrate all segments of the market. And our payer coverage is actually coming online very nicely. Where we have coverage today, we've got confirmed coverage for autoinjector in over 90% of those plans. So the team is now working with customers, getting it on formularies and will be ready to launch at the end of the month.
Operator
Our next question comes from the line of Salim Syed with Mizuho.
Salim Qader Syed
I guess, a couple for me, if I can, one on perhaps toripalimab and then another on UDENYCA. On tori, Paul, you mentioned that you believe on NPC, you can reach a peak sales number around $200 million. I know you haven't disclosed your pricing framework here, but by my math, that would suggest something about like an $85,000 net price per patient. Just curious if you could point us in the right direction, if that's -- ballpark is correct based on your $200 million peak, if you were to actually be able to get into all patients, all lines.
Dennis M. Lanfear
Let me first take that one, Salim. We -- as a matter of policy, we don't comment on pricing for products which are not approved. So after we have the product approved, we'll be happy to revert there on projected pricing. But as Paul said in his remarks, we will have both first line and other lines of care. And we do have about, I think, 2,500-plus patients per year. But we're happy to chat a little bit about pricing approval.
Salim Qader Syed
Okay. Great. Maybe if I -- maybe if you could comment a little bit then on -- I guess, I'll just ask my second question on toripalimab again. Maybe you can comment a little bit on the warehousing. It sounded like you guys are trying to build a registry of patients for NPC with your website. Can you just maybe give us an idea how many patients are currently in the registry and how many you plan to warehouse prior to approval?
Paul Reider
Yes. Thanks, Salim. Being in rare cancer, the only company and brand that's going to be entering the space, launching npcfacts.com was really the work of our market intelligence and our customer knowledge where we found that doctors and patients really don't have a qualified centralized place to go to get information about NPC.
And so that was the real driving force there. Now adding a community where we can invite patients and their caregivers and that they're local, localized or if they're metastatic, and we can then communicate with them appropriately. So we're going to be turning up the media around that to really start cranking up the noise level there. We'll be having our field team through appropriate disease state efforts share the website with the accounts directly. So they can actually hand this out in their patients as they come in. So we will be reporting out on actual numbers on that. But so far, we like what we're seeing there.
Dennis M. Lanfear
I would add the additional comment, Salim, that if approved, we will be the only agent approved by the FDA for this terrible disease. We feel that we have a responsibility to reach out to these patients and find these patients and educate them. These patients are otherwise progressing without toripalimab. And as Rosh indicated, the benefits of toripalimab treatment are really substantial. And so we feel a tremendous responsibility to reach out to these patients and let them know there's hope.
Operator
Our next question comes from the line of Mike Nedelcovych from TD Cowen.
Michael Thomas Nedelcovych
I have two on toripalimab. The first, and you hinted at this already a little bit, but I'm curious if you have a sense of whether there's any off-label use of other checkpoint inhibitors in NPC that you may have to displace once toripalimab is approved. I realize there's no approved checkpoint inhibitor.
And then secondly, when we think beyond NPC, it would seem given a potentially differentiated mechanism of action and a potentially differentiated clinical profile that the world is your oyster. How will you go about selecting the next set of indications to advance in the pivotal trial?
Dennis M. Lanfear
Mike, thank you very much for the question. I'll let Dr. Dias address your first question. And then Dr. Lavallee can address the mechanism of action question subsequently. Rosh?
Rosh Dias
So just -- thanks for the question. So I'll just reiterate a couple of points that we mentioned earlier. So first of all, there are no approved therapy for nasopharyngeal carcinoma in the U.S. So what that means is for the current standard of treatment is typically chemotherapy, gemcitabine cisplatin typically. That even though there is not an indication for other immunotherapies, there is -- the NCCN does include a couple of other therapies as potential treatment, but that importantly, actually, is on the basis of -- for our data set because there are no positive data sets in the NPC for other immunotherapies nor an indication.
Dennis M. Lanfear
Theresa, can you comment on how the mechanism of action brings forward other potential combination of therapies with toripalimab or -- and so on?
Theresa M. Lavallee
Yes. I'm seeing the increase in potency on T cells, which is related to the true mechanism to be able to activate antitumor immunity and seen across 3 large Phase III studies, the NPC, JUPITER-02, the CHOICE-01 non-small cell lung cancer study and the JUPITER-06, the ESCC study that was published in cancer cells that toripalimab in frontline studies in combination with chemotherapy works irrespective of PD-L1 status and really lends itself to combinations to really target mechanisms of resistance in those tumor types.
So our pipeline includes ILT4, which is looking at macrophages, which is a known resistant factor in diseases such as small cell lung cancer. So we'll be looking at the disease positioning based on the mechanism. And as we've stated a few times, we're really engaged with a number of other companies that have compounds with Phase II data to help us position tori in disease based on a strong clinical hypothesis. So I think later this year, you'll be seeing the nice development plan there.
Operator
Our next question comes from the line of Douglas Tsao of H.C. Wainwright.
Douglas Dylan Tsao
Just question on CIMERLI for me. I'm just curious in terms of the accounts that have adopted it, are they switching all their ranibizumab volume to CIMERLI? Or are they typically still splitting it between CIMERLI and Lucentis?
Dennis M. Lanfear
Thanks for your question, Doug. Paul, do you want to take that one?
Paul Reider
Sure. Thanks, Doug. Yes, as of today, our source of business from a patient standpoint is coming from a combination of new patient starts as well as conversions from other anti-VEGF therapies, including Lucentis. So we expected this, and that's what we're seeing in the market.
Dennis M. Lanfear
Did you have a follow-on question, Doug?
Douglas Dylan Tsao
Yes. Also, just in terms of YUSIMRY's launch, I'm just curious, do you have a sense or have you been able to start to make some progress or finalize agreements with payers because from -- that seems to be a real focus of your strategy just given the fact that you're not going to really be promoting into those indications.
Dennis M. Lanfear
Well, I think it's fair to say that the focus of any Humira biosimilar market participant competitor will be payers insofar as payers and PBMs are the primary determiners of formulary selection for this product. That being said, we have also previously indicated that we won't be making any comments regarding pricing, consider payer's conversations until after the launch in July. So that's a fair question for our August call, which we'll talk about Q2, but no further comment on that particular point at this point.
Operator
Our next question comes from the line of Balaji Prasad of Barclays.
Marek Ciszewski
Let's move on to the next question, operator, please, and come back.
Operator
Our next question comes from the line of Ash Verma of UBS.
Ashwani Verma
Congrats on the progress. I had one on tori and one on YUSIMRY. So on toripalimab, maybe I missed this, like from FDA's point of view, is the key determination in the NPC approval just the site inspection? Or does FDA still need to make up its mind, whether it will or will not adopt regulatory flexibility as it looks for a China study PD-1?
And I'm just curious, I know that there has been a paper that was published in Lancet a couple of years ago, where they commented on NPC and SEC being these indications of high unmet need. Do you have like a confirmation from the FDA if that's not an issue anymore? Does that apply to any other indications? That's my first question.
And then on second, so CIMERLI, so I think you mentioned the mid-single-digit royalty to be paid until 2020 -- mid-2024. Just wanted to understand if I heard that correctly. So is that like a industry standard term that you got and there's no royalty that you need to pay after 2024? It's just like based on your launch time line.
Dennis M. Lanfear
Right. Let me take the last one first, okay? What McDavid Stilwell stated was that we had a low single-digit royalty on UDENYCA up to 2024, not CIMERLI. So CIMERLI is a different financial arrangement and in which we have a royalty profit split with our licensing, slightly different, if that's clear. .
With regards to your question on regulatory flexibility, I'll let Dr. Lavallee address the issue of what comprises regulatory flexibility for the FDA, what the status of that is and the consistency of their comments, particularly as it applies to NPC. Theresa?
Theresa M. Lavallee
Yes. Thanks, Ash. It's complex, but they -- as you stated, they have enumerated several times NPC warrants regulatory flexibility, both in the Lancet Oncology article and the New England Journal of Medicine article (inaudible). And the way that they look at it is several fold, one on the epidemiology of the disease, the improved available therapies. and the applicability to U.S. medical practice.
And so NPC is one that really, if you will, give you the get out of jail card free on all of those boxes, particularly given the lack of approved treatments and the profound benefit that we've observed with toripalimab both in combination with chemotherapy in the front-line study in monotherapy and second in later lines.
The only thing when you miss a PDUFA date without a letter, it usually just means the FDA can't compete what they need to do, and they've said repeatedly about not being able to travel to China last year due to the COVID-19 travel restrictions. And I think what speaks volumes is even in the pink sheet a couple of weeks ago, the FDA stated they had not reinstated doing inspections in China.
They had told us repeatedly given the breakthrough therapy designation and the meaningful clinical benefit that we would be at the front of the list. The fact that ours is scheduled this month tells you we're at the front of the list. And I don't think they would be using their resources to go places where they had worries.
Dennis M. Lanfear
Externally and internally, the FDA has been very, very, very consistent that nasopharyngeal cancer warrants regulatory flexibility.
Operator
Our next question comes from the line of Chris Schott of JPM.
Christopher Thomas Schott
The first one was just on UDENYCA. I'm just still trying to get my hands around the, I guess, flow-through of the competitive dynamics for the traditional presentation and how insulated basically the autoinjector and on-body opportunities are from that. So obviously, companies in a much, much improved competitive position with these approvals. But I guess, does the more competitive environment for the traditional product impact the opportunity for the new presentations? Or do you view them as almost like kind of separate markets as the -- we think about kind of where pricing could shake out, et cetera, for these?
Dennis M. Lanfear
Thanks, Chris. I'll let Paul reply to your question with respect to PFS and autoinjector presentations, the competitive dynamics. Paul?
Paul Reider
Yes. Chris, so when you think about the big progress to market, it's bifurcated into two segments. There's the in-office segment where the -- largely the patients come back to the office. That's predominantly been where the prefilled syringe presentations have been competing. The autoinjector can be used in that in-office setting based on nurse and patient preference that we build under the same Q-code and reimbursed through the same ASP. So the differentiated device enables us to compete there.
And the other part of -- and that's 57% of the market. The at-home segment, where Onpro has largely had a dominant share, is where the autoinjector will be able to offer a new alternative. And in that case, it will be on the differentiation and the type of patient experience that the patient can realize using a simple, easy-to-use autoinjector versus wear in the on-body device.
So then when we add the on-body, if approved later this year, now we'll have the total solution for customers. So whether they're in the office, whether they're at home, whatever they're a hospital or a clinic, they'll have 3 presentations to meet the unique needs of the providers and patients. So we believe that will put us in a strong competitive position with the franchise and will enable us to grow share later this year and in the coming years.
Christopher Thomas Schott
Great. And can I just follow up on the autoinjector versus on-body? I guess, of those two opportunities, what do you see as the bigger opportunity? Because it seems like one is kind of a unique presentation to Coherus versus the other is obviously a large segment of the market that you'll be the only kind of competitor, I guess, versus Amgen.
Paul Reider
Yes. Well, listen, we're going to launch at the end of this month, and we'll really see how customer receptivity unfolds here, but we're very, very excited about based on what we've heard now. I think at the end of the day, Chris, what's going to happen is patients are going to choose what type of experience they want and the nurses are going to be key constituents, helping to identify whatever the patient and the doctor prescribes. We want to be the total solution.
Dennis M. Lanfear
One additional point I would make, though, Chris, is that with an on-body system, it has to be filled by the nurse, attached to the patient, activated. The patient walks around with it for 24 hours. There's about a 3-hour period that the patient set aside for the injection. And then there's a 45-minute injection period in which the patient's basically do anything. And there's a sense, we think, with the patients of a loss of control. Your therapy is controlling you, right?
And people are living with cancer, right? So it's very attractive for a patient to be able to be administered with an autoinjector at the time of their choosing. So I think that's a very powerful patient empowerment that has -- we have seen very strong receptivity in the market.
To your question as to which segment it will take the most from it, I think it'll probably take share from non-PFS, that is, say, on-body is a new segment, but also the PFS. It's generally a new unserved segment.
Christopher Thomas Schott
Great. And then one just last one for me. I know [you kind] of comment on pricing on the biosimilar Humira side of the market until it launches. But just any observations or surprises or thoughts at all on the -- I guess, the market formation so far with the first biosimilar that's launched? Or is that generally trending as you would have anticipated for these, I guess, first 3 or 4 months in the market?
Dennis M. Lanfear
I think the -- I think it's a fair question, but I believe that the jury is out at this point. I think we've only had 1 team launch, Amgevita. The results have been made public and so on. I think you just have to really see. I don't think market formation has really started for the Humira biosimilar market. I don't think it will until after the July date on ourselves and another -- some other market interest come in. But I think that's the point where you start to see things out.
Operator
Our last question comes from the line of Jason Gerberry from Bank of America.
Bhavin Patel
This is Bhavin on for Jason. So two questions for me. The first one is -- so we've seen the first price increase for UDENYCA in tandem with the autoinjector launch. Should we expect to see pricing sort of steady state from here? Or are there more price increases to come as the new formats come to market?
And then the second question is going back to your March 2022 Investor Day, where you set 2026 targets. How are you thinking about the 10% market share goal that leads to a $1.2 billion target as you transition to the commercial launch phase for multiple products?
Dennis M. Lanfear
Thanks for your question. With respect to UDENYCA pricing, do I understand correctly that you stated there was a price increase with the additional [process]?
Bhavin Patel
Yes, from the (inaudible) data.
Dennis M. Lanfear
Oh, you mean the ASP increase that just occurred?
Bhavin Patel
Yes.
Dennis M. Lanfear
Okay. Paul, could you explain the ASP increase?
Paul Reider
Yes, sure. Just to clarify, UDENYCA list price for the autoinjector will be the same price as the prefilled syringe, which is about a 35% discount to Neulasta. As it relates to the ASP, you are correct that in the second quarter, we did have a 4% increase in our ASP, which puts it amongst the highest of the established brands in the class, including the innovator. So higher ASP leads to higher reimbursement. So that's why we've been very disciplined with management of ASP in preparation for these new presentation launches.
Dennis M. Lanfear
With respect to your YUSIMRY question and market share, I would point out that this market is developing consistent with our expectations. The readouts that we got 1 to 2 years ago from payers about what was important to them, that is to say, pricing scale, robustness of supply, the autoinjector, patient comfort, that's playing out pretty much as planned. We deliberately spent about $45 million to move into very large-scale manufacturing. That's an approval that Dr. Lavallee and her team got last quarter. .
So I think we're well prepared in terms of scale for competing at 10-plus percent as we go forward. And just how long it takes us to get to that sort of benchmark in the market, we'll have to see given the dynamics. But we -- I can say that we are totally geared up in all aspects of that with the device, with the scale and with our cost structure for YUSIMRY.
Bhavin Patel
And then if I can have one follow-up. Do you have any line of sight into competitor biosimilar Lucentis launches over the next 12 to 18 months? .
Dennis M. Lanfear
Paul, do you want to take that question?
Paul Reider
Yes. We're only aware of one competitor ranibizumab biosimilar. And from what we understand, they're not looking for a launch until 2024 based on their public statements.
Dennis M. Lanfear
I think the key issue, though, to keep in mind with CIMERLI and Lucentis biosimilar market is the impact on the Q-code that we garnered, deployed on April 1. I had the opportunity in the last couple of weeks to go out and visit a number of customers and discuss with them firsthand whatever barriers to adoption they may have had with CIMERLI and so on. And every single one of those customers, I think I saw 4 different practices and 4 different states.
And I talked to at least 30 to 50 physicians contained within those practices. And they are all very enthusiastic about the impact of the Q-code and its impact on their cash flow, their ability to be certain about reimbursement. So I think that's why you're seeing the acceleration in the market share and the uptake and some of the things even that we've seen some additional data came out today and on April utilization. So I think that follows directly from the Q-code for our previous remarks. And direct feedback to me from the customers indicate that's the case also.
Operator
At this time, I would like to turn it back to Denny Lanfear, the CEO of Coherus BioSciences, for closing remarks.
Dennis M. Lanfear
Thank you, operator. And thank you, everyone, for joining us today. As you heard, 2023 will be an exciting year of catalyst for Coherus, and we look forward to keeping you all updated on our progress. We'll be at the Bank of America conference this week, and we'll be at UBS following that later this month. Talk to you all soon. Bye-bye.
Operator
Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
