Coherus Oncology is reducing its workforce by approximately 30% as it redirects resources toward developing an experimental cancer treatment targeting esophageal cancer.
The California-based biotechnology company announced the restructuringr alongside its third-quarter financial results, describing the move as part of a broader effort to concentrate spending on its most promising clinical programs and improve its financial position.
The company’s decision follows encouraging early findings from its TREGCHECK clinical development program, which is evaluating tagmokitug in combination with toripalimab, marketed as Loqtorzi. Tagmokitug is an investigational antibody designed to target CCR8, a protein expressed on regulatory T cells that can inhibit immune responses within tumors. By selectively removing these cells, the treatment aims to strengthen the body’s ability to recognize and attack cancer.
In October, Coherus reported a confirmed overall response rate of 75% among evaluable patients receiving the three-drug combination of tagmokitug, toripalimab and chemotherapy for previously untreated esophageal squamous cell carcinoma. The response rate was observed regardless of PD-L1 status, a biomarker commonly used to help guide immunotherapy decisions. The company also reported encouraging activity in previously treated esophageal cancer patients and other solid tumors.
Following these findings, Coherus intends to concentrate development of the combination on esophageal squamous cell carcinoma and esophageal adenocarcinoma. The company plans to consult with the U.S. Food and Drug Administration on a new study design, initially prioritizing patients whose disease has progressed following earlier treatment.
Rosh Dias, CMO of Coherus Oncology, said the findings across both major esophageal cancer subtypes suggest that regulatory T cells contribute significantly to resistance against existing treatments. He explained that tagmokitug appeared to enhance the activity of PD-1 inhibitors, produce responses in tumors without PD-L1 expression and potentially restore sensitivity in patients who had previously stopped responding to this class of immunotherapy.
The workforce reduction is expected to generate recurring savings of approximately $6 to $7 million per quarter. Most of the financial benefits are anticipated to materialize within two quarters. Chief Financial Officer Bryan McMichael said the lower operating cost base would reduce the quarterly Loqtorzi revenue required to support core operations to between $25 million and $30 million, compared with the previous estimate of $30 million to $35 million.
CEO Denny Lanfear said the restructuring would align the company’s organizational structure with its revised research priorities. He also highlighted the completion of manufacturing transfers and the gradual conclusion of transition services associated with Coherus’ earlier business operations as factors supporting the decision.
Loqtorzi generated $14 million in third-quarter net revenue, representing 25% growth compared with the same period in 2025. However, Coherus lowered its full-year 2026 revenue expectations to between $54 million and $57 million.
Despite narrowing its research focus, Coherus will continue advancing other programs, including tagmokitug combined with pasritamig for metastatic prostate cancer and casdozokitug for liver cancer. The restructuring therefore represents a reprioritization of its oncology pipeline as opposed to a complete withdrawal from its other experimental treatments.
Interestingly, this isn’t the first time the firm has let go of 30% of its workforce – it laid off a similar percentage of workers last year as well.
Coherus Reduces Its Workforce to Reshape Strategy
Coherus is making a significant strategic change by reducing its workforce by 30% as the company works to prioritize its oncology pipeline. The decision reflects the growing pressure on biotechnology companies to manage costs carefully while concentrating resources on programs with the greatest potential.
The workforce reduction allows Coherus to streamline operations and focus its financial and scientific resources on the development of treatments targeting serious diseases. Strategic restructuring has become increasingly common across the biotechnology industry as companies adapt to changing market conditions and investment priorities.
