CHRS

The headline that makes CHRS look cheap — a 1.0 P/E on $1.43 diluted EPS and 398% net margin — is an accounting illusion, not earning power. The $168M FY2025 net income and the entire EPS came from selling the biosimilar franchises: management confirms the UDENYCA Business was divested to Intas on April 11, 2025 for $483.4M cash, with YUSIMRY and CIMERLI already gone, and all of it reclassified to discontinued operations. What remains as the actual business is tiny and deeply unprofitable: continuing revenue of just $42.2M (LOQTORZI, the only commercial product), operating income of -$181M, a -429.5% operating margin, and -$139M of operating cash flow. Backing out the one-time gain, this is a single-drug, clinical-stage story, not a profitable company.

The balance sheet is the bigger problem. Despite pocketing $483.4M from Intas earlier in 2025, cash fell to $88.9M by year-end (-29.5% YoY) — the proceeds were largely consumed paying down liabilities (down 66%) and funding the burn. With operating cash flow at -$139M, cash on hand does not cover even one more year of the current run-rate, and the company still owes Junshi up to $90M in regulatory milestones and up to $290M in sales-threshold payments on LOQTORZI, plus rising R&D ($109M and climbing). The accumulated deficit is $1.4 billion. Shares are already up 29.3% YoY to 150M, and the 10-K's own language — 'research and development is expensive and risky,' 'we may not become profitable,' expenses 'will increase substantially' — points squarely toward more capital raises and dilution.