Coherus brings the Surface saga to a close

Surface Oncology has had a number of setbacks over the years, so today’s stock-for-stock takeover by Coherus Biosciences for a total of $60-65m is perhaps a rescue of sorts. The deal nets Coherus a handful of immune-oncology assets including anti-IL-27 and anti-CCR8 antibodies in mid-stage trials; a strategy under consideration appears to be combining both of these with Coherus’s anti-PD-1 toripalimab. Surface’s net cash of $20-25m will fund ongoing trials of these two agents, SRF388 and SRF114, to the end of 2024, and Coherus said the acquisition would also allow it to reduce its budgeted R&D spend by at least $50m to 2025. As part of the deal Surface shareholders will receive contingent value rights based on potential future payments for all four of the company’s projects in active development. Though Surface's stock had collapsed over the past two years, the Coherus all-stock deal at least gives shareholders the possibility of seeing some future upside tied to the success of their company's acquirer.