Good morning. Thank you to Jefferies for having us today at their investment conference. I'm Denny Lanfear, CEO of Coherus BioSciences. We are an innovative oncology company based in the Bay Area. Let me first apprise you of the forward-looking statements and direct you to the company's SEC filings for each of its products, toripalimab, Casdozokitug, CCR8 moiety, as well as ILT4. Today, I'll first cover some corporate highlights, describe to our overall business model, and then subsequently, Dr. LaVallee, our Chief Development Officer, will discuss our innovative oncology pipeline and the developments that we have so far with each of our key products.
I'll then come back, and I'll talk to you about our commercial oncology business, what is going on with respect to the launch of LOQTORZI, our toripalimab, into nasopharyngeal cancer, as well as UDENYCA, our pegfilgrastim product. Then finally, I'll close. Coherus is a fully integrated, commercial-stage, innovative oncology company, with accelerating sales with our first product, our LOQTORZI, which was launched into nasopharyngeal cancer. We also have three other products in development: Casdozokitug, CHS-114, and our ILT4. LOQTORZI is accelerating with respect to its revenues, having been launched last quarter into NPC, and UDENYCA now has three dosage forms, with increasing revenues across the pegfilgrastim space. The company has had five product launches, and our team is very proficient both at research and development and commercialization.
The key issue here is the connection between our development capabilities and our commercialization strategies. We have a robust pipeline, as you can see, of early to late-stage products, with both internal and external development. First of all, LOQTORZI, which is on the market, generating sales. LOQTORZI will have additional development, and we'll talk to you in just a moment, both internally and externally partnered. Casdozokitug is in a number of indications, including lung, liver. And as I said, Dr. LaVallee will discuss that just momentarily. CHS-114 or CCR8 is now moving into solid tumors, including hepatocellular carcinoma, and we have just completed the filing of our ILT4 moiety, CHS-1000.
We have a robust strategy for unlocking the additional LOQTORZI value and expanding our indications, you know, first of all, with registrational studies that are partner-funded. These are studies in which we provide drug, but we do not provide additional development support. We have two such efforts underway, one with our partner, Junshi, with BTLA and lung, two separate Phase IIIs, which are moving forward next year, and another one with Inovio, which we'll describe in just a moment. These could result in registrations for LOQTORZI over the coming years. We also are developing LOQTORZI in conjunction with our own internal pipeline, the products that you'll see in just a moment.
The benefit of that is that, if registration is gained, we will be marketing both the new novel compound, Casdozokitug, or for example, our CCR8, as well as LOQTORZI, which is, of course, highly beneficial. And then lastly, we are making very good progress, with earlier stage, development opportunities with collaborations. One such agreement being concluded recently with Cancer Research Institute. I think it is of note that some of the larger big pharmas with their PD-1s aren't really supporting, opportunities for combination studies, and Coherus is very deliberately stepping into these collaborative, arrangements. We have, under development, a significant commercial opportunity, some $15 billion across the life cycle.
We are focused, as you can see, primarily in solid tumors, with our products, with casdozokitug, CHS-388, as well as 114, our CCR8 molecule, and so on. So over the next five years, you'll see significant progress with the development in all these addressing these large markets. So with that, I'll turn it over to Dr. LaVallee, the company's Chief Development Officer, to discuss the pipeline.
Thank you, Denny. So our pipeline is looking at reversing PD-1 resistance, targeting well-established immune suppressive mechanisms that have dampened PD-1 treatment while PD-1 has been remarkable in the oncology space, still a minority of patients benefit. So we're looking at extending survival in new indications, as well as PD-1 resistance. So the first program that we'll discuss today is our CCR8-targeted antibody. This is T regs have been an immune suppressive cell that have been long sought after in oncology because it's known to dampen the immune response in tumors. The limitation has been broad T reg depletion in patients that causes autoimmunity, as well as finding specificity to the T reg cell that doesn't affect the effector cells, the CD4s or CD8 cells, that you need to kill the tumor.
CCR8 is really exciting in that it is preferentially expressed in Tregs in the tumor, and this antibody's mechanism is easy, binds and kills. It's an afucosylated antibody, so seeks out the immunosuppressive cells and gets rid of it. We are excited that we just presented our Phase I data at ASCO dose escalation, and what we found was safety, proof of mechanism. We're currently in dose expansion in head and neck cancer, a tumor type that over 90% of the Tregs are expressing CCR8 and highly Treg-rich tumor that has limited response to PD-1. Catalyst later this year, early next year, will be looking at the data, including Treg depletion in the tumor in these head and neck cancer patients. We're looking at it both alone and in combination with toripalimab. Here's the proof of mechanism data that really shows this works.
CCR8 is expressed in about 20% of Tregs in the periphery. The graph on the left shows complete and immediate depletion of CCR8 positive Tregs in the periphery. This is remarkable, from dose level 3 through dose level 7. But then on the graph on the right shows that about 20% of Tregs go down, showing that selectivity that's been missing for every other approach targeting Tregs. So this program will continue to advance. As I said, we have catalysts later this year showing the head and neck, and we'd like to expand into other solid tumors that have a high density of CCR8 positive Tregs. Casdozokitug, our IL-27 antagonist. It is long well-established that targeting cytokines rebalances the immune system. There are multiple approved antibodies in inflammatory diseases. Casdozokitug is the first demonstration in oncology. Safe, immune activation, monotherapy tumor responses in clinic. Here's the mechanism.
When IL-27 is secreted, it dampens T cells and NK cells. So taking this cytokine out of the mix activates those anti-tumor immune cells. The Phase I study is complete, and a large dose expansion has been ongoing. Over 150 patients treated, we see safety, immune activation, monotherapy responses in tumor types that the preclinical models told us should happen. Lung, and we also see activity in liver and renal. This is important because it allows us to have a highly focused development plan. We have ongoing a second to fourth line study in combination with toripalimab, following up on that monotherapy activity to see if we can reverse PD-1 resistance in second-line lung. Here's the activity that got us so excited. 40 lung cancer patients treated, highly refractory, two deep, durable responses in PD-1 refractory, PD-L1 low tumors.
This is remarkable that taking out a single cytokine can do this. The tumor type that's shown on the bottom left is from the one of the patient's response. You can see in the right part, the third panel, the dark brown staining shows high levels of IL-27. The panel in the middle shows the CD8 cells are immune excluded. This is the immune desert that really prevents PD-1 from working. Simply taking the cytokine out reversed that, and we see a deep, durable response in this patient. Combining it now with toripalimab, we'll see that as a catalyst early next year with data on that study. Additionally, 30 patients have been treated in first-line liver cancer in combination with atezo/bev. Importantly, again, safety, immune activation, response, and PFS higher than atezo/bev has reported. Here's the data.
We see a 38% overall response rate across disease subtypes, viral and non-viral. Importantly, there are three complete responses, so depth of response, durability of response. Again, in the bottom left, we show some immunohistochemistry, where we see in a couple of patients, there's an association with high levels of IL-27 with response. So we'll continue to follow this. Later this year, we're opening a study with toripalimab, Casdozokitug in first-line liver. And lastly, as Denny mentioned, we're really excited about our first homegrown program targeting myeloid checkpoint. Another way of removing tumor immune suppression is getting rid of the immune suppressive myeloid cells. ILT4 is selectively expressed on those, and we'll be looking to move this program into the clinic in the coming months. So I'll let Denny discuss the commercial.
Thank you, Theresa. Let me just talk for just a moment here about the commercial oncology. So first of all, we have launched LOQTORZI. This has established a new standard of care in nasopharyngeal cancer. What's very important here is that LOQTORZI is now the only FDA-approved treatment for nasopharyngeal carcinoma, and it is so across all lines of therapy. The incidence of this patient population is about 2,000 per year. There is no labeled treatment for these patients. There is not even chemotherapy. On the very left panel, we talk a little bit about the mechanics of the launch, and I'll discuss in just a moment our commercial operations with respect to our pegfilgrastim UDENYCA.
But we are able to have a 90% footprint overlap with these call points, so this is a very, very highly effective way of leveraging our sales force. Importantly, as you see in the center panel, we have also garnered Category 1 designation under NCCN. So this is first line, and this is clearly stated there. There is other treatment for NPC, but it is farther, much farther down. We recently had a number of meetings at ASCO in Chicago, and the key takeaway from that is that LOQTORZI is now the standard of care treatment, displacing all other treatments. Over the coming year or two, we'll focus on expanding the market for LOQTORZI, as we bring all these patients in.
One key issue with this is that these patients show up right now in various places, in various stages of their care. So you have patients that have received chemo, some patients have received another PD-1, some have progressed, some are waiting to progress. So over the next two or three years, we expect to get a total concentration in this patient population. So this is very very impressive data, as you see here. This is the registration study executed by our partners at Junshi. This is LOQTORZI plus chemo versus LOQTORZI alone in first-line nasopharyngeal cancer. And as you see, there's a 37% reduction in the risk of death, with a hazard ratio of 0.63 versus chemotherapy alone. Now, let me talk a little bit about the UDENYCA franchise, our legacy product, pegfilgrastim.
This is the only pegfilgrastim brand with three presentation options. We have, of course, the prefilled syringe, which is administered the next day with patients. They have chemo, then they come back one day later and get a prefilled syringe. So that requires a return office visit. This has the advantage, really, of having the nurse or the physician directly administer the drug. Last year, we also launched our auto-injector. We are the only auto-injector on the market with this product. And what this is, this allows the patient to self-administer or allows the nurse or nurse practitioner to administer with an auto-injector, which is much more convenient than a prefilled syringe. What's notable here also is that people are very comfortable now.
Patients have become progressively more comfortable with the use of auto-injectors, and we think this is going to be a progressively larger and larger product as time goes on. And lastly, this just past year, we launched the on-body injector, and this was really a, an excellent product for us. Very, very innovative. This was a de novo design that overcame some of the shortcomings of the originator product. This allows the clinical practice to administer the device 1 day, and then 24 hours later, the device will go off. And what's very interesting about our approach here is there is no cannula insertion upon first administration as there is with the innovator product. There is simply a needle which is inserted 24 hours later. This results in greater patient coverage.
This device also has novel patient feedback mechanisms, and this device, actually, the third significant advantage here is this device administers the drug in 5 minutes. So it very clearly communicates with the patient. 5 minutes, it's done and over, as opposed to 45 minutes with the innovator. And this has resulted in a high degree of patient satisfaction and very positive feedback. The UDENYCA, I'll talk in just a moment, is growing in 2024, quarter to quarter, as a result of these additional presentations. This provides us a highly differentiated approach to the market. Here, I'll just show you is the revenue increase across 2023, and here you can see that there was a 64% increase in revenue from Q1 2023 to Q1 2024.
This was driven really by a number of things, the prefilled syringe, but also the addition of these additional presentations. This allowed us to get much broader insurance coverage, and we project additional market growth, market share growth over the next year. The demand increase really was 36%, as you can see, quarter-over-quarter, driven by the prefilled syringe and the auto-injector. Our franchise market share is now in excess of 25%. So last year in Q1, our market share was about 10.5%. We've now grown that to 25%, and we project significant market share growth through the remainder of 2024. The on-body approval and launch, of course, has allowed us to access large portions of the market. Last year, the average innovator- on-body device had about 42% market share. It's declined since then.
But there is a very significant part of the market, which needs this approach for patients that are remotely located, for example, and so this is a very large segment that we can now address. And as I indicated just a moment ago, our payer coverage has increased substantially, which allows us really to increase our sales. So let me just talk a little bit about the outlook and the strategy before concluding and taking questions. So, our long-term strategy for the company is very, very straightforward. First of all, to drive revenues, as you've seen, with LOQTORZI, and with UDENYCA.
Secondarily, as Dr. LaVallee outlined for you to advance our pipeline of tumor microenvironment-focused agents in conjunction with partners such as Inovio and our colleagues at Junshi as well as with other earlier stage collaborations. And then to allocate our capital very, very efficiently. So some of the key things that we will be addressing here is the Casdozokitug + atezo/bev triple combination data, which we reported in Q1 2024. The CHS-114 Phase I data was just released at ASCO last week. The Inovio Phase III in HPV-positive locally advanced patients will be initiated in the second half of this year and hopefully result in a registration for us. And then Casdozokitug plus toripalimab and non-small cell lung cancer in the hands of our partner.
With respect to revenue growth, as I indicated a moment ago, we expect about a 2.5-3-year ramp to fully penetrate the nasopharyngeal market. That should generate between about $150 million and $200 million per year peak sales. With that particular product, the opportunity to have all lines of therapy allows us to totally address it. And then, as I indicated just a moment ago with UDENYCA, we have the three presentation forms, which again allows us to get significant market penetration, 25% market share, increasing for the rest of this year. We've also focused quite a bit in the last 6-12 months on our capital allocation in a number of ways, and our ability really to use our capital very effectively.
First of all, our portfolio prioritization. We believe that we're optimizing our R&D spend, really focusing on clinical proof of concept. Unlike some companies, you won't see us just spending willy-nilly on things and moving forward into indications, or clinical settings in which we don't have very strong data to do so. Importantly, though, we addressed some of our other capital structure issues, with respect to our debt. Happy to say that, so far this year, we have paid down a significant portion of our debt. We had a $250 million loan facility, Pharmakon Advisors. We divested our ophthalmology franchise for a $187.5 million, and we were able to pay then down a $175 million of that debt, which left an additional $75 million.
We recently concluded just last month an agreement with Barings in which we bifurcated that remaining $75 million into a royalty stream against LOQTORZI and UDENYCA, and debt of some $37.5 million. So with respect to debt, structured debt, that's been reduced from $250 million to $37.5 million over the last three months, and we're very happy with the divestiture of the ophthalmology franchise and with respect to that. Lastly, we are pursuing multiple partnerships and collaborations which maximize value. I think our development strategy for toripalimab is very robust. We are able to just provide drug to partners at various stages of development, whether it be early stage or later stage, even Phase III, the registration studies, without paying for the clinical trial costs ourselves.
We think this is a very, very effective way to develop the drug and to gain additional registrations over the next three, four, and five years. Thank you very much. I'm happy to take any additional questions or, or comments. Yes, please.
Good morning. Just one question about the biosimilar businesses. So are you consciously—I mean, you have pegfilgrastim, but would you be consciously moving away from the biosimilar business, or you have, for at least oncology or other products, product pipeline with you?
Thank you. The question is, what is the company's view of the biosimilar franchise? And will we continue to move away or divest those? As you saw, we divested the ophthalmology franchise. That was off focus for us. We're focused solely now on innovative oncology. We believe that our mission now is to extend patient survival, patients with cancer survival. The company was founded, I would say, with the ambition to bring therapeutics to patients that couldn't afford them and to develop healthcare's system savings. We continue that mission now with innovative oncology, and our focus, as I said, is to increase survival. So yes, you can expect us, with respect to our portfolio, to focus sharply on innovative oncology, going forward. Any additional questions?
What's your view on International Markets for LOQTORZI?
LOQTORZI is commercialized in China by our partner, Junshi. They're pursuing additional partnerships in the EU, and we also have Canadian rights for LOQTORZI, which we are probably going to do something about in the near future. Thank you all very much.