Immunocore Holdings plc Reports 23.7% Revenue Growth, Strong Cash Reserves in Q3 2024

Immunocore Holdings plc reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on immunomodulating medicines for cancer and other diseases, experienced a notable increase in both revenue and cash reserves compared to the previous fiscal period.

For the three months ended September 30, 2024, Immunocore generated total revenue of $80.2 million, a 23.7% increase from $64.9 million in the same period of 2023. Product revenue specifically rose by 28.1%, reaching $80.2 million, up from $62.6 million. This growth was primarily driven by increased sales of KIMMTRAK, its lead product, which reported $57.3 million in the U.S. market alone, reflecting a 31.8% increase year-over-year. For the nine months ended September 30, 2024, total revenue was $226.2 million, a 26.2% increase from $179.3 million in 2023.

Despite the revenue growth, Immunocore reported a net income of $8.7 million for the third quarter, a significant improvement from a net income of $906,000 in the same quarter of the previous year. However, for the nine-month period, the company recorded a net loss of $27.3 million, an improvement from a loss of $35.6 million in the prior year. The basic net income per share for the third quarter was $0.17, compared to $0.02 in 2023.

Immunocore's financial position strengthened considerably, with cash and cash equivalents increasing to $537.8 million as of September 30, 2024, up from $442.6 million at the end of 2023. Total current assets surged to $1.0 billion, compared to $528.8 million at the end of the previous year. The company’s total liabilities also rose to $706.8 million, up from $228.2 million, largely due to the issuance of $402.5 million in convertible senior notes in February 2024.

Research and development (R&D) expenses for the third quarter were $52.8 million, a 22.0% increase from $43.2 million in 2023, driven by advanced trials for its product candidates. Selling, general, and administrative (SG&A) expenses remained stable at $35.5 million, although there was an increase in salaries and employee-related costs due to the internalization of the U.S. sales force.

Strategically, Immunocore entered a collaboration with Bristol Myers Squibb in February 2024 to investigate its ImmTAC bispecific TCR candidate, brenetafusp, in combination with nivolumab for advanced melanoma. The company is sponsoring the Phase 3 clinical trial, which commenced in June 2024.

Overall, Immunocore's financial results reflect a robust growth trajectory, bolstered by strategic collaborations and a strong product pipeline, despite ongoing operating losses as it continues to invest in R&D and commercialization efforts.