Coherus Oncology, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Coherence Biosciences 2020 Second Quarter Earnings Conference Call. My name is Nora, and I'll be your conference operator for the call today. As a reminder, this conference call is being recorded. I would now like to turn the call over to David Errington, Coherence Investor Relations and Corporate Affairs. Please go ahead.

Thank you, Nora, and good afternoon, everyone. After close of market today, we issued a press release on our second quarter financial results. This release can be found on the Coheris Biosciences website. Joining me for today's call will be Denny Lanphier, Coheris' CEO, Dr. Jean Verret, Chief Financial Officer, Thomas Fitzpatrick, Chief Legal Officer, and Chris Thompson, Executive Vice President, Sales. Before we begin our formal remarks, I would like to remind you that we will be making forward-looking statements, including risks and uncertainties related to the impact of COVID-19 pandemic on Coherence's business and results of operations. In addition, other forward-looking statements, such as our plans and expectations regarding our ongoing commercialization of Udenica, product candidate pipeline, product development plans, financial projections, and the use of capital, all of which involve certain assumptions, risks, and uncertainties that are beyond our control and could use actual results to differ from these statements. A description of these risks can be found in the earnings press release and our latest SEC filings. Please also note that the non-GAAP financial measures included in our press release should be used to help you understand Coherence's business performance and should not be a substitute for your review of our GAAP financial measures. The GAAP to non-GAAP reconciliations are also provided in the earnings press release. I will now turn the call over to Denny.

Thank you, David. Good afternoon, everyone. On today's call, we'll first review for you our results for the second quarter of 2020, and in doing so, provide you with some context with respect to COVID considerations and how our strategies, competencies, and capabilities allowed us to successfully navigate the market uncertainty. We'll then update for you our pipeline development as we advance our efforts to become a multi-product growth company, addressing $30 billion in market opportunity over our five-year planning horizon. We'll recap for you our strategy to leverage our demonstrated commercial strengths into the ophthalmology, endocrinology, therapeutic markets. Lastly, we will provide some color in how we see the remainder of 2020 developing with respect to our oncology and Pikeville-Graston markets. and provide financial insights on our cash use over the short-term planning period. With us today, we have Chris Thompson, our Executive VP of Sales, who will provide our commercial update in color, and Jean Verret, our CFO, who will provide our financial updates. Let me start with our top line Q2 2020 financial results. We are pleased to report that net product revenue for the quarter was $136 million. exceeding our expectations. Earnings were 70 cents per share, and non-GAAP earnings were 81 cents per share, both on a diluted basis. We increased our cash, cash equivalents, and investments to 456 million. For the quarter, our commercial strategy and strong execution successfully mitigated COVID's potential impact on unit sales. And after a brief pause at the beginning of the crisis in March and April, market share growth has now resumed. We believe the strong performance this quarter further validates the commercial capability which enabled us to deliver such strong launch results last year and gives us high confidence that we will do so very well commercially with our ophthalmology and immunology product candidates. I want to thank the entire Cohere's team for their very fruitful efforts in a tough market environment. Now, with respect to our second quarter results, I would remind you that on our last call, we made three predictive statements as we actively managed risk with respect to COVID. First, we observed that there was a COVID-driven delay for patient referrals for oncology treatment, which could persist through the second quarter and beyond. We also reported and observed an uptick in the use of Neulasta OnPro in certain COVID hotspot regions. and we projected that it would be transient based on feedback from customers in those regions. Lastly, we shared that we believed Udenica demand would continue to grow through 2020 as cancer patients and providers continued to benefit from the value provided by Udenica. So let me review the data and how these dynamics played out in the Pegville-Grasson market for Q2. The oncology market in general and the Pegville-Grasson market in particular proved to be very resilient. as providers and hospitals found ways to identify new patients and treat patients already diagnosed. Recent IQVIA data has shown a strong rebound with new patients. New patient diagnoses increased to 96% of baseline by the end of June, back up from a mid-COVID nadir of about 70%. Peckville-Graston demand is growing, and we believe the new NCCN ASCO guidelines have had a positive, supportive impact from existing patients, as we anticipated on our last call. The Pegville-Graston market has remained strong, with quarter-over-quarter unit growth in the low single digits, consistent with previous quarters. Additionally, market data suggests New Lasta's overall share is declining again as hospitals have adapted to the COVID environment. We have seen a modest ASP decline in the market, reflecting our price disciplines. Let me address the reasons we believe the Petco Graston market has proven to be resilient in the second quarter, and specifically the two dynamics at play here. First, cancers typically grow very fast, and treatment delay is dangerous to patients. Therefore, cancer patients requiring chemotherapy are now seeking treatment. Referrals are stabilizing to normal levels across most regions. Second, providers are adjusting to the needs of oncology patients through new measures and service delivery paradigms that ensure continuity of their operations and patient safety. The dynamic is relatively straightforward. Patients depend on cancer care for their lives, and healthcare providers are committed to providing this essential care. The result for the second quarter in the face of COVID was less moderation in demand and pegfograstin usage than some had anticipated, and a clear demonstration of the robustness of the market, COVID notwithstanding. Now let me turn the call over to Chris Thompson, who will make a few comments about our commercial performance. Chris?