Immunocore Holdings Ltd (IMCR)

Immunocore Holdings (IMCX): A Comprehensive Overview

Company Profile:

Immunocore Holdings Ltd, or IMCX, is a UK-based immunotherapy company focusing on developing and commercializing T cell receptor (TCR)-based therapies to treat cancer and infectious diseases. Founded in 2008 by Professor Adrian Hill and Dr. Eli Gilboa, IMCX’s history intertwines with that of Adaptimmune. Both were spin-offs, each holding licenses for different parts of the technology discovered at the University of Oxford around the time of its TCR patent filing in 2003. IMCX has several subsidiaries, including ImmTAC (Singapore) and Immunocore, Inc (USA). Their primary focus lies in TCR-based therapies known as ImmTACs - engineered protein constructs that combine a T cell receptor for targeting tumor-specific antigens with the effector function of an antibody.

Top Products and Market Share:

IMCX’s lead product, tebentafusp (kimmtrak), is the first-ever T cell receptor-modified T cell (TCR-T) immunotherapy approved in the US. Tebentafusp targets the HLA-A*02-01 restricted peptide epitope of gp100, a melanoma-associated antigen expressed in a range of cancers including uveal melanoma. The drug offers significant survival benefit to patients with advanced or metastatic Uveal melanoma as a monotherapy. IMCX estimates its addressable market for tebentafusp in metastatic uveal melanoma at 2,200 patients annually in the US and EU combined. However, market penetration for this new class of therapies remains low, highlighting the need for greater awareness and potential expansion into additional cancer types.

Total Addressable Market:

The global immunotherapy market reached a value of USD 137.3 billion in 2023 and is projected to reach USD 504.5 billion by 2031, growing at a CAGR of 17.85%. This market growth underlines the vast potential of this novel approach for treating cancers and other diseases.

Financial Performance:

IMCX remains in its development stages, currently focused on commercializing tebentafusp. As such, their revenue stream remains low, primarily generated from collaborative partnerships and the sale of ImmTAC-based therapies. Their recent collaboration with Genentech in exchange for upfront cash and future milestone payments illustrates one way IMCX secures revenue while navigating its journey to profitability. Their financial health shows signs of growth, evident in increased cash reserves and decreased operating expenses. The acquisition of a new facility and expansion of the manufacturing team indicate investments for future scaling up and product expansion.

Dividends and Shareholder Returns:

Currently, IMCX does not distribute dividends, prioritizing investments in research and development to further their product pipeline. Their share price performance shows volatility in recent years but reveals an overall upward trend, particularly following tebentafusp approval and their collaboration with Genentech.

Growth Trajectory:

IMCX’s future hinges on the successful commercialization of tebentafusp. Initial sales figures for kimmtrak in the US are promising despite a slow market adoption curve. Their current focus on expanding into additional indications for tebentafusp, along with their development of additional ImmTAC-related therapies, paints a positive outlook for growth. The recent strategic acquisition of MacroGenics’ early-stage oncology pipeline reinforces their commitment to further development, indicating an ambitious and forward-thinking growth strategy

Market Dynamics:

The immunotherapy field is characterized by rapid innovation, driven by the need for more effective and individualized cancer treatment approaches. IMCX's unique technology platform offers a compelling alternative to existing immunotherapies. However, the field remains competitive, requiring continuous adaptation to market dynamics and scientific progress.

Competitors:

• Adaptimmune (ADAP)
• Carisma Therapeutics (CTRM)
• Iovance Biotherapeutics (IOVA)
• Kite Therapeutics (KITE)
• Poseida Therapeutics, Inc. (PSTX)