The announcement triggered a 16% decline in pre-market trading, with the stock falling to $1.68. This sharp reversal follows a period of significant momentum for the company, whose shares had gained 70% over the past 12 months leading up to Thursday’s close. Investors often weigh the dilutive impact of secondary offerings against the long-term benefits of strengthened balance sheets.

Funding the Loqtorzi Launch

According to the company, the capital is primarily earmarked for the commercialization of Loqtorzi, an advanced treatment for nasopharyngeal carcinoma. Coherus also plans to allocate a portion of the funds toward the clinical development of its broader pipeline of product candidates.

Underwriters have been granted a 30-day option to purchase up to an additional 4.29 million shares at the public offering price. The transaction is expected to finalize on or around Feb. 17, provided customary closing conditions are met.