The company announced preliminary sales of its biosimilar
The drug maker Coherus BioSciences Inc (NASDAQ:CHRS) is near the top of the Nasdaq today, after the company announced late Friday that preliminary sales of its biosimilar UDENYCA -- used in patients receiving myelosuppressive chemotherapy -- are expected to be between $36 million and $38 million. In response, CHRS stock is up 13.5% at $16.61.
The security has been on the rise lately, after stringing together four consecutive wins last week -- set for its fifth day in the black today. Looking at the charts, CHRS has nearly doubled off its early January low of $8.32. Today's gap has the shares above short-term resistance in the $15.50 area, and trading in territory not seen since early October.
The news has analysts paying attention, too. J.P. Morgan Securities just lifted its target price to $25 from $22. Sentiment surrounding the stock has already been quite bullish, however. Currently, all five analysts consider CHRS stock a "strong buy," and the consensus 12-month target price of $29 represents a roughly 80.5% premium to current levels.
Short sellers have started hitting the exits, with short interest down 3.7% in the latest reporting period. Short interest still represents a healthy 17.5% of the stock's available float, though. At CHRS' annual daily pace of trading, it would take over two weeks to cover these pessimistic positions -- which may be contributing to today's outsized gains.