Core Insights - Immunocore Holdings plc (NASDAQ:IMCR) is recognized as one of the 12 best UK stocks to buy according to hedge funds [1] - Jefferies downgraded Immunocore Holdings plc from Buy to Hold with a price target reduction from $48 to $33, citing a "moderate" total addressable market for its lead product Kimmtrak and emphasizing the risks associated with its pipeline [2] - The company reported a fourth-quarter EPS of (60 cents), which was below the consensus estimate of (20 cents), and revenue of $104.5 million, slightly below the consensus of $107.77 million [2] - CEO Bahija Jallal highlighted a productive year in 2025 with $400 million in Kimmtrak sales and plans for 2026 focused on executing clinical trials, including key data expected in oncology and the initiation of its first autoimmune study [2] Company Overview - Immunocore Holdings plc specializes in developing and commercializing immunomodulating therapies aimed at treating cancer, infectious diseases, and autoimmune conditions [3]

Core Insights - Immunocore will present five-year overall survival data for KIMMTRAK at the 2026 AACR meeting, marking the longest OS follow-up in a randomized trial for metastatic uveal melanoma patients [1][2] Company Overview - Immunocore Holdings plc is a commercial-stage biotechnology company focused on developing immunomodulating medicines for cancer, infectious diseases, and autoimmune diseases [1][14] - The company’s proprietary T cell receptor technology has led to the creation of ImmTAC molecules, designed to redirect the immune system to target and kill cancer cells [3][14] Product Information - KIMMTRAK (tebentafusp-tebn) is a bispecific protein targeting gp100, approved for HLA-A*02:01-positive adult patients with unresectable or metastatic uveal melanoma in multiple regions including the US and EU [5][14] - Uveal melanoma is a rare and aggressive form of melanoma, with up to 50% of patients developing metastatic disease, historically lacking approved treatments until KIMMTRAK [4][5] Clinical Data Presentation - The presentation will include additional data beyond the abstract, such as subsequent treatments, treatment beyond progression, and prognostic factors [2][3] - The session will be held on April 19, 2026, with Paul Nathan as the presenting author [3]

Upgrades - Keefe Bruyette upgraded Rocket Companies (RKT) to Outperform from Market Perform with a price target of $22, up from $20, citing valuation as shares are down 25% year-to-date [2] - Keefe Bruyette upgraded PennyMac Financial (PFSI) to Outperform from Market Perform with an unchanged price target of $115, indicating a 38% upside to the price target based on valuation [2] - Berenberg upgraded Ecolab (ECL) to Buy from Hold with a price target of $326, up from $300, expecting swift implementation of price increases to become a "sticky component" of Ecolab's pricing strategy [3] - Arete upgraded Trade Desk (TTD) to Neutral from Sell with a price target of $25, noting pressure on management to restore investor confidence as shares are down 49% in the last 12 months [3] - Clear Street upgraded Circle Internet (CRCL) to Buy from Hold with a price target of $136, up from $92, citing five catalysts for USDC market cap and adoption despite a 44% drawdown in broader crypto markets [4] Downgrades - Seaport Research downgraded Qualcomm (QCOM) to Sell from Neutral with a price target of $100, predicting that the memory crunch will adversely affect Qualcomm's customers and market share [5] - Argus downgraded Adobe (ADBE) to Hold from Buy, despite a 12% growth in operating income in Q1, due to overshadowing concerns from the announcement of CEO Narayan's resignation [5] - Jefferies downgraded Incyte (INCY) to Hold from Buy with a price target of $94, down from $120, citing patent cliff concerns [5] - Jefferies downgraded Alnylam (ALNY) to Hold from Buy with a price target of $330, down from $522, stating that shares are "priced to perfection" despite being impressed with the company's RNAi platform [5] - Jefferies downgraded Immunocore (IMCR) to Hold from Buy with a price target of $33, down from $48, noting that while Kimmtrak is a real product, the total addressable market is moderate and sales are nearing peak [5]

Immunocore Conference Call Summary Company Overview - **Company**: Immunocore (NasdaqGS:IMCR) - **Technology**: Pioneered T-cell receptor technology, specifically in solid tumors with KIMMTRAK, the first T-cell engager in this area [3][4] Commercial Performance - **KIMMTRAK Revenue**: Achieved $400 million in net revenue last year, representing a 30% year-on-year growth, marking the fifteenth consecutive quarter of growth [4] - **Market Penetration**: 70% penetration across major markets, launched in 30 markets, and established as the standard of care for HLA-A*02:01 positive uveal melanoma patients [4][5] - **Growth Expectations**: Anticipated growth to moderate to 4%-7% quarter-on-quarter as the product matures in the market [4][5] Key Learnings from KIMMTRAK Launch - **Adoption Challenges**: Adoption in rare diseases is challenging; developed predictive analytics to target one-off patients [6] - **Real-World Performance**: KIMMTRAK shows better real-world performance with a mean duration of therapy of 14 months [6][7] Clinical Data and Studies - **Survival Data**: Published 28-month median overall survival data for KIMMTRAK in metastatic uveal melanoma from a French registry [9] - **Upcoming Data**: Expecting 5-year overall survival data from a phase 3 study, which is unprecedented in this indication [10] - **TEBE-AM Study**: Focused on cutaneous melanoma, with enrollment expected to finish in the first half of 2026 and data anticipated in the second half of 2026 [12][13] Competitive Landscape - **Uveal Melanoma**: Limited competition; one phase 3 study in HLA-A*02:01 negative patients, with KIMMTRAK not approved in that setting [11] - **Cutaneous Melanoma**: More competitive with existing therapies like TILs; KIMMTRAK's focus on overall survival provides a competitive edge [17][18] Commercial Opportunities - **Cutaneous Melanoma Market**: Estimated 4,000 patients with late-line cutaneous melanoma present a significant commercial opportunity [16] - **Physician Familiarity**: Approximately 50% of physicians treating cutaneous melanoma are already familiar with KIMMTRAK, enhancing adoption potential [18] Geographic Considerations - **Market Focus**: The U.S. is the primary market for KIMMTRAK, with plans for a global launch depending on data outcomes [21] Future Studies and Developments - **ATOM Study**: Ongoing phase 3 adjuvant study in uveal melanoma, with data expected 12-18 months after accrual completion [22] - **PRIME Study**: Phase 3 study in frontline cutaneous melanoma, comparing brenetafusp with Nivolumab, with significant patient opportunity [23][25] Broader Applications - **HIV Research**: Exploring the potential of T-cell receptor technology in HIV functional cure studies, currently in multiple ascending dose trials [34][35] - **Autoimmune Diseases**: Investigating applications in type 1 diabetes, aiming to provide a tissue-specific treatment option [37][39] Financial Position - **Cash Position**: Approximately $860 million, with a focus on strategic investments rather than immediate profitability [41][42] Key Milestones for 2026 - **KIMMTRAK Lifecycle Management**: Enrollment completion and data readout expected in the second half of 2026 [44] - **Brenetafusp Data**: Anticipated readouts in lung cancer and ovarian cancer by the end of the year [44] - **HIV Program Updates**: Additional data expected towards the end of the year [45]

Core Insights - Immunocore Holdings plc is a biotechnology company focused on developing T cell receptor-based therapeutics, currently in the development stage with high R&D costs before achieving profitability [1] - The company's Return on Invested Capital (ROIC) is -1.74%, and its Weighted Average Cost of Capital (WACC) is 7.98%, indicating it is not generating returns above its cost of capital [2][6] - The ROIC to WACC ratio for Immunocore is -0.22, which is better than some peers, suggesting a relatively better potential for capital efficiency improvement [2][6] Peer Comparison - Vor Biopharma Inc. has a ROIC of -232.79% and a WACC of 9.67%, resulting in a ROIC to WACC ratio of -24.09 [3] - Cullinan Therapeutics, Inc. reports a ROIC of -53.35% and a WACC of 4.55, leading to a ROIC to WACC ratio of -11.72 [3] - Sana Biotechnology, Inc. has a ROIC of -57.87% and a WACC of 12.06, resulting in a ROIC to WACC ratio of -4.80 [3] - Design Therapeutics, Inc. stands out with a ROIC of -38.71% and a WACC of 11.33, achieving the highest ROIC to WACC ratio of -3.42, indicating a closer potential to achieving positive returns [4] Industry Context - All companies analyzed, including Immunocore, are operating with negative ROIC, which is typical for early-stage biotechnology firms [5][6] - Investors should consider ROIC and WACC metrics alongside other factors such as pipeline progress, market potential, and financial health when evaluating investment opportunities in the biotechnology sector [5]

Financial Data and Key Metrics Changes - For the year 2025, the company generated $400 million in net revenue from KIMMTRAK, representing a 29% increase from the prior year [5][9] - The operating loss was reduced in 2025 as revenue growth outpaced operating expenses [25] - The balance sheet remains strong with approximately $864 million in cash and marketable securities, an increase of over $40 million from the previous year [25] Business Line Data and Key Metrics Changes - KIMMTRAK is now approved in 39 countries and launched in 30 markets, with over 70% penetration across all major markets [5][9] - The mean duration of therapy for KIMMTRAK is 14 months, exceeding clinical trial experiences [5][9] - The company activated 150 new accounts in 2025, with 70% of KIMMTRAK prescriptions coming from the community [10][11] Market Data and Key Metrics Changes - The company expects moderating growth in 2026 as it enters KIMMTRAK's fifth year on the market, with underlying sequential quarterly revenue growth in the range of 4%-7% [23][24] - The company anticipates that the growth trend will continue to slow down in 2026 [24] Company Strategy and Development Direction - The company is expanding the reach of KIMMTRAK through a lifecycle management program with two phase III trials: TEBE-AM and ATOM [6][7] - The oncology platform is being expanded beyond melanoma into ovarian and lung colorectal cancers and GI cancers [8][17] - The company aims to achieve tissue-specific down modulation of the immune system in autoimmune diseases, with candidates targeting type 1 diabetes and atopic dermatitis [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of growth trajectories and the potential of KIMMTRAK to transform patient lives [11][12] - The company is focused on delivering transformative medicines and expects 2026 to be a year of data and continued progress [26] Other Important Information - The company has three ongoing phase III trials in oncology, with data readouts beginning as early as the second half of 2026 [13][14] - The company is also advancing its HIV functional cure program and hepatitis B candidate, with promising early results [8][19] Q&A Session Summary Question: Geographic breakdown of TEBE-AM enrollment - The majority of enrollment is coming from Europe, with 10%-15% from the U.S. [30] Question: Treatment arms powered for overall survival in TEBE-AM - The study is designed to meet statistically significant and clinically meaningful thresholds, typically at least a 30% difference from the control [34] Question: Expectations for contract sales growth - The company expects growth to moderate, with year-on-year growth of 29% normalizing to around 20% [38] Question: Pricing strategy for second-line cutaneous melanoma - The company believes it can defend its pricing based on the unmet need and established safety profile if data is positive [45] Question: Evaluation of success in early autoimmune studies - The company will assess target binding and surrogate markers like C-peptide to evaluate early efficacy [49] Question: Learnings from KIMMTRAK's success in uveal melanoma - Half of the cutaneous melanoma patients are treated by physicians experienced with KIMMTRAK, providing a strong foundation for potential launch [52]

Financial Data and Key Metrics Changes - In 2025, the company generated $400 million in net revenue from KIMMTRAK, representing a 29% increase from the previous year [5][9][23] - The operating loss was reduced in 2025 as revenue growth outpaced operating expenses [25] - The balance sheet remains strong with approximately $864 million in cash and marketable securities, an increase of over $40 million from the previous year [8][25] Business Line Data and Key Metrics Changes - KIMMTRAK is now approved in 39 countries and launched in 30 markets, with over 70% penetration across all major markets [5][9] - The mean duration of therapy for KIMMTRAK is 14 months, exceeding clinical trial experiences [5][9] - The company activated 150 new accounts in 2025, with 70% of KIMMTRAK prescriptions coming from community settings [10][11] Market Data and Key Metrics Changes - KIMMTRAK's adoption is widespread, with half of all patient starts occurring in community settings [10] - The company expects moderating growth in 2026 due to significant market penetration [23][24] Company Strategy and Development Direction - The company is expanding KIMMTRAK's reach through a lifecycle management program with two Phase III trials: TEBE-AM and ATOM [6][7] - The oncology platform is being expanded beyond melanoma into ovarian and lung colorectal cancers [8][17] - The company aims to achieve tissue-specific down modulation of the immune system in autoimmune diseases [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of growth strategies and the potential for KIMMTRAK to transform patient outcomes [11][26] - The company anticipates 2026 to be a year of data and continued progress, with significant readouts expected [26] Other Important Information - The company is advancing its pipeline in infectious diseases and autoimmune conditions, with promising data from ongoing studies [8][20] - The company has a robust R&D engine with three ongoing Phase III trials in oncology [13][18] Q&A Session Summary Question: Geographic breakdown of TEBE-AM enrollment - The majority of enrollment is from Europe, with 10% to 15% from the U.S. [30] Question: Treatment arms powered for overall survival in TEBE-AM - The study is designed to meet statistically significant and clinically meaningful thresholds, typically at least a 30% difference from the control [34] Question: Expectations for contract sales growth - Growth is expected to moderate as the company enters its fifth year on the market, with underlying growth around 20% after normalizing for rebate reserves [38] Question: Pricing strategy for second-line cutaneous melanoma - The company believes it can defend its pricing based on the unmet need and overall survival endpoint if data is positive [45] Question: Evaluation of success in early autoimmune studies - Success will be evaluated based on target binding and surrogate markers like C-peptide [49] Question: Learnings from KIMMTRAK's success in uveal melanoma - Half of the cutaneous melanoma patients are treated by physicians experienced with KIMMTRAK, providing a strong foundation for potential launch [52]

Financial Data and Key Metrics Changes - For the year 2025, the company generated $400 million in net revenue from KIMMTRAK, representing a 29% increase from the prior year [4][7][24] - The operating loss was reduced in 2025 as revenue growth outpaced operating expenses [26] - The balance sheet remains strong with approximately $864 million in cash and marketable securities, an increase of over $40 million from the previous year [26] Business Line Data and Key Metrics Changes - KIMMTRAK is now approved in 39 countries and launched in 30 markets, with over 70% penetration across all major markets [4][7] - The mean duration of therapy for KIMMTRAK is 14 months, exceeding clinical trial experiences [4][7] - The company activated 150 new accounts in 2025, with 70% of all KIMMTRAK prescriptions coming from community settings [9] Market Data and Key Metrics Changes - KIMMTRAK's adoption is widespread, with half of all patient starts occurring in community settings [9] - The company expects moderating growth in 2026, with underlying sequential quarterly revenue growth in the range of 4%-7% [24] Company Strategy and Development Direction - The company is expanding the reach of KIMMTRAK through a lifecycle management program with two phase III trials: TEBE-AM and ATOM [5][6] - The oncology platform is being expanded beyond melanoma into ovarian and lung colorectal cancers [6][17] - The company aims to achieve tissue-specific down modulation of the immune system in autoimmune diseases, with a focus on type 1 diabetes and atopic dermatitis [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of KIMMTRAK and the potential to serve a larger patient population [10][11] - The company anticipates that 2026 will be a year of data and continued progress, with significant investments in R&D [27] Other Important Information - The company has three ongoing phase III trials in oncology, with data readouts expected beginning in the second half of 2026 [12][18] - The company presented promising data for its HIV functional cure program and hepatitis B candidate, confirming the potential of its platform in infectious diseases [6][19] Q&A Session Summary Question: Geographic breakdown of TEBE-AM enrollment - The majority of enrollment is coming from Europe, with 10%-15% from the U.S. [30] Question: Statistical assumptions for TEBE-AM treatment arms - The study is designed to meet statistically significant and clinically meaningful thresholds, typically at least a 30% difference from the control [35] Question: Expectations for revenue growth in 2026 - The company expects growth to moderate, with underlying growth around 20% when normalizing for rebate reserves [39] Question: Pricing strategy for potential cutaneous melanoma indication - The company believes it can defend its pricing based on the unmet need and established safety profile if data is positive [45] Question: Evaluation of success in early autoimmune studies - The company will assess binding to the target and measure surrogate markers like C-peptide for efficacy [50] Question: Insights from KIMMTRAK's success in uveal melanoma for cutaneous melanoma - Half of the cutaneous melanoma patients are treated by physicians experienced with KIMMTRAK, providing a strong foundation for a potential launch [54]

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Product Development and Clinical Trials - KIMMTRAK, the lead product, is approved in 39 countries and commercially launched in 30 countries, including the U.S., Germany, and France[588] - The company has treated over 2,000 cancer patients with KIMMTRAK and other ImmTAX product candidates, representing a significant clinical data set in solid tumors[589] - The company plans to complete enrollment in the registrational advanced melanoma trial, TEBE-AM, in the first half of 2026, with topline data expected in the second half of 2026[596] - The company submitted a Clinical Trial Application for its first autoimmune candidate, IMC-S118AI, for type 1 diabetes, expecting to dose the first patient in the first half of 2026[595] - The company plans to pursue further approval and commercialization of KIMMTRAK in additional indications and territories[639] - The company entered into a clinical trial collaboration with BMS to investigate a bispecific TCR candidate in combination with nivolumab, with no monetary consideration exchanged[649] Financial Performance - The company reported net losses of $55.3 million, $51.1 million, and $35.5 million for the years ended December 31, 2023, 2024, and 2025, respectively, with an accumulated deficit of $831.3 million as of December 31, 2025[591] - For the year ended December 31, 2025, total revenue increased by 29% to $400.0 million, driven primarily by net revenue from the sale of therapies, which rose to $400.0 million from $310.0 million in 2024[616] - Revenue from the sale of therapies in the United States was $257.0 million, a 13% increase from $226.7 million in 2024, while Europe saw a significant 79% increase to $131.4 million from $73.2 million[617] - Selling, general and administrative (SG&A) expenses increased to $165.4 million in 2025, up from $155.8 million in 2024, reflecting costs associated with commercial and business support functions[623] - Interest income decreased to $16.5 million in 2025 from $25.6 million in 2024, while interest expense also fell to $12.2 million from $18.8 million, primarily due to the repayment of the Pharmakon Loan[624] - The accumulated deficit stood at $831.3 million as of December 31, 2025, reflecting ongoing operating losses since inception[628] Research and Development Expenses - The company expects to continue incurring significant operating losses and increasing expenses as it advances product candidates through clinical development and seeks regulatory approvals[591] - The company anticipates an increase in R&D expenses as it advances existing and future product candidates through clinical studies[603] - Research and development (R&D) expenses for 2025 totaled $274.9 million, a 24% increase from $222.2 million in 2024, with external R&D expenses rising by 25% to $189.6 million[620][618] Financing and Liquidity - The company raised funds through various means, including an initial public offering and private placements, to support operations and R&D activities[590] - The company expects to finance operations through a combination of equity offerings, debt financings, and collaborations, amid challenging macroeconomic conditions[592] - As of December 31, 2025, cash and cash equivalents were $467.7 million, with marketable securities totaling $396.4 million, indicating a stable liquidity position[629][638] - The company completed a private offering of $402.5 million aggregate principal amount of Notes, with net proceeds of $389.1 million[648] - The company expects to incur payments of up to $66.0 million related to material contractual lease obligations extending to 2043[644] - The company has existing manufacturing obligations that could result in payments of up to $19.0 million, expected to increase as the pipeline advances[645] Tax and Regulatory Considerations - As of December 31, 2025, the company had accumulated tax losses available for carry forward in the UK of $525.5 million and in the US of $73.6 million[614] - The effective tax rate for relevant revenue streams benefiting from the U.K.'s "patent box" regime is 10%, with the company having filed for this relief for the 2023 and 2024 tax years[615] Risk Management - The company is exposed to interest rate, currency, credit, and liquidity risks, managed by a financial risk committee[659] - The company continually monitors credit quality and does not anticipate non-performance from financial institutions and corporations[667] - The maximum default risk corresponds to the carrying amount of financial assets shown in the Consolidated Balance Sheets[667] - A five percentage point increase in exchange rates would reduce the carrying value of net financial assets and liabilities held in foreign currencies by $6.5 million as of December 31, 2025[665] - Changes in exchange rates have caused material fluctuations in the Consolidated Statements of Operations and Comprehensive Loss due to foreign exchange gains and losses[664] - The company is not subject to interest rate risks related to other liabilities shown in the Consolidated Balance Sheets[662]