Shares of Coherus BioSciences hit an all-time low after the company’s third-quarter loss and revenue growth fell short of analyst projections.
Coherus BioSciences, a biotechnology company, experienced a significant drop in its stock value as it reported disappointing results for the third quarter. The stock plummeted by 31% to reach a low of $2.44 during early trading on Tuesday. This decline adds to the stock’s overall decrease of two-thirds since the beginning of the year.
Earnings Report Highlights
The company announced that its third-quarter loss reduced to $39.6 million, equivalent to 41 cents a share, as compared to a loss of $86.7 million, or $1.11 a share, during the same period last year. Although the loss narrowed, it still failed to meet analysts’ expectations of a loss of 39 cents per share.
Additionally, Coherus BioSciences reported revenue of $74.6 million for the quarter, rising from $45.4 million in the same period last year. However, this figure fell short of the projected revenue of $81.8 million according to FactSet.
Market Reaction and Analysts’ Outlook
The disappointing earnings report sparked concerns among investors, leading to a substantial decline in the company’s stock value. In response to the news, HC Wainwright reduced Coherus BioSciences’ price target from $20 to $13.
These recent developments reflect the uncertainty surrounding the company’s future prospects. As Coherus BioSciences aims to regain investor confidence, it will need to address the concerns raised by its underwhelming performance in the third quarter.