Coherus Biosciences (CHRS) is a company that develops and markets biosimilar versions of popular biologics that have been out on the market for years with typically high levels of sales. Coherus has built an impressive level of cash flow already, yet shares trade for just over 2.5x this year’s expected sales and 10.5x this year’s expected earnings. With multiple new potential products hitting the market over the next few years, Coherus could more than double its revenue, creating a large opportunity for patient investors. Thanks to Boston Biotech Investor for writing the article that put this company on my radar.
Coherus Has A Validated Business Model And Management Has Shown Good Ability To Execute
Before we go deeper into Coherus’ business model, I want to make sure everyone has at least a rough idea what we are talking about when using the terms biologics and biosimilars.
The FDA says that