Shares of (NASDAQ: CHRS) rallied as much as 21.7% early Monday, then gave up its gains to trade up around 2.4% as of 2:40 p.m. ET. This occurred after the company announced an agreement to divest its ophthalmology franchise.

In a press release this morning, Coherus announced a deal to divest its Cimerli franchise, a biosimilar drug to treat vision impairment and loss, to biosimilars company Sandoz Group (OTC: SDZN.Y). The latter will pay Coherus $170 million in cash up front for Cimerli and its supporting commercial infrastructure, plus an additional amount (to be determined at closing) for working capital adjustments and Cimerli product inventory.

Coherus entered the ophthalmology market in 2022, gaining significant market share in the non-core area of its business.

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Source Fool.com