Immunocore Holdings plc (IMCR) Bundle
Understanding Immunocore Holdings plc (IMCR) Revenue Streams
Understanding Immunocore Holdings plc’s Revenue Streams
The company generated significant revenue primarily through the sale of its product KIMMTRAK. For the nine months ended September 30, 2024, the net product revenue amounted to $225.9 million, a notable increase from $171.1 million in the same period of 2023, representing a year-over-year growth of 32.0%.
Breakdown of Primary Revenue Sources
Revenue from product sales is categorized by region. The following table summarizes the product revenue, net from KIMMTRAK by region for the nine months ended September 30, 2024 and 2023:
| Region | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Increase/Decrease (in thousands) | % Increase/Decrease |
|---|---|---|---|---|
| United States | $162,900 | $120,722 | $42,178 | 34.9% |
| Europe | $55,454 | $49,293 | $6,161 | 12.5% |
| International | $7,583 | $1,127 | $6,456 | 572.8% |
| Total | $225,937 | $171,142 | $54,795 | 32.0% |
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate reflects a robust performance, particularly driven by increased sales in the United States. The total revenue for the nine months ended September 30, 2024, was $226.15 million, up from $179.27 million in the previous year, marking a growth of 26.2%.
Contribution of Different Business Segments to Overall Revenue
In addition to product revenue, collaboration revenue has been a part of the revenue streams, although it saw a significant decline. The collaboration revenue for the nine months ended September 30, 2024, was $0.2 million, down from $8.1 million in 2023, indicating a decrease of 97.4%.
Analysis of Significant Changes in Revenue Streams
The notable changes in revenue streams can be attributed to the company’s focus on expanding its product sales while facing challenges in collaboration revenue. The decrease in collaboration revenue was primarily due to the conclusion of the Phase 1 clinical trial with Genentech in early 2023. The following table summarizes the total revenue for the nine months ended September 30, 2024 and 2023:
| Type of Revenue | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Increase/Decrease (in thousands) | % Increase/Decrease |
|---|---|---|---|---|
| Product Revenue, Net | $225,937 | $171,142 | $54,795 | 32.0% |
| Collaboration Revenue | $213 | $8,124 | $(7,911) | (97.4%) |
| Total Revenue | $226,150 | $179,266 | $46,884 | 26.2% |
A Deep Dive into Immunocore Holdings plc (IMCR) Profitability
A Deep Dive into Immunocore Holdings plc's Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the gross profit was $225.9 million, reflecting a gross profit margin of approximately 100% from net product revenue of $225.9 million.
Operating Profit: The operating loss for the nine months ended September 30, 2024, was ($161.3 million), compared to an operating loss of ($117.9 million) for the same period in 2023 .
Net Profit Margin: The net income for the three months ended September 30, 2024, was $8.736 million, resulting in a net profit margin of approximately 10.9%. In contrast, for the nine months ended September 30, 2024, the net loss was ($27.316 million), yielding a negative net profit margin .
Trends in Profitability Over Time
Net Income Trend: The net income for the three months ended September 30, 2024, was $8.736 million, an increase from $906,000 in the same period in 2023 . However, the nine-month results show a net loss increase from ($35.557 million) in 2023 to ($27.316 million)
Comparison of Profitability Ratios with Industry Averages
Industry Comparison: The average net profit margin for the biotechnology industry is typically negative due to high R&D costs. For context, the average net profit margin in the biotech sector hovers around (20%) to (25%), indicating that the company's recent net profit margin of 10.9% for Q3 2024 is a positive deviation from industry norms.
Analysis of Operational Efficiency
Cost Management: The total operating expenses for the nine months ended September 30, 2024, amounted to $161.3 million, up from $117.9 million in 2023 . R&D expenses constituted the largest portion, totaling $161.3 million.
Gross Margin Trends: The gross margin remained stable at 100% in both 2024 and 2023, reflecting consistent pricing and cost management strategies.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $8.736 million | $906,000 | ($27.316 million) | ($35.557 million) |
| Gross Profit Margin | 100% | 100% | 100% | 100% |
| Operating Loss | ($161.3 million) | ($117.9 million) | ($161.3 million) | ($117.9 million) |
| Net Profit Margin | 10.9% | 1.4% | (12.1%) | (19.8%) |
Debt vs. Equity: How Immunocore Holdings plc (IMCR) Finances Its Growth
Debt vs. Equity: How Immunocore Holdings plc Finances Its Growth
As of September 30, 2024, Immunocore Holdings plc reported a total long-term debt of $390.5 million from convertible senior notes and $48.2 million from a loan with Pharmakon Advisors, bringing total debt to $438.7 million. The company has no significant short-term debt obligations as of the same date.
The debt-to-equity ratio stands at 1.16 as of September 30, 2024, calculated from total debt of $438.7 million and total equity of $377.8 million. This ratio is slightly above the industry average of approximately 1.0, indicating a higher reliance on debt financing compared to peers in the biotechnology sector.
Recent financing activities included the issuance of $402.5 million in convertible senior notes in February 2024, with an interest rate of 2.5% and a maturity date set for February 1, 2030. Additionally, the company has a loan agreement with Pharmakon Advisors, which carries an interest rate of 9.75% and is due in November 2028. The credit rating for Immunocore is not explicitly stated, but the issuance of convertible notes indicates a favorable assessment by investors.
Immunocore balances its capital structure by utilizing both debt and equity financing. As of September 30, 2024, the company had raised approximately $1.677 billion in total from equity offerings and debt financing since inception, indicating a strategic approach to blend both financing methods. For instance, in July 2022, the company raised $140 million through equity placements.
| Type of Debt | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Convertible Senior Notes | 402.5 | 2.5% | February 1, 2030 |
| Pharmakon Loan | 50.0 | 9.75% | November 2028 |
| Total Debt | 452.5 |
In summary, Immunocore's approach to financing its growth involves a careful balance between debt and equity. As it continues to expand its product offerings and market presence, the company will likely explore further financing options to support its strategic initiatives.
Assessing Immunocore Holdings plc (IMCR) Liquidity
Assessing Immunocore Holdings plc's Liquidity
Current Ratio: As of September 30, 2024, the current ratio was approximately 8.06, calculated from current assets of $901.3 million and current liabilities of $112.4 million.
Quick Ratio: The quick ratio stood at 8.06 as of September 30, 2024, indicating strong liquidity since it excludes inventory from current assets.
Analysis of Working Capital Trends
Working capital as of September 30, 2024, was $739.7 million, up from $389.8 million as of December 31, 2023. This increase in working capital reflects a robust liquidity position.
| Period | Current Assets ($ millions) | Current Liabilities ($ millions) | Working Capital ($ millions) |
|---|---|---|---|
| December 31, 2023 | 442.6 | 52.8 | 389.8 |
| September 30, 2024 | 901.3 | 161.6 | 739.7 |
Cash Flow Statements Overview
For the nine months ended September 30, 2024, cash flows from operating activities amounted to $40.0 million, compared to $20.7 million for the same period in 2023.
Net cash used in investing activities was $351.6 million for the nine months ended September 30, 2024, a significant increase from $4.6 million in 2023, primarily due to purchases of marketable securities.
Net cash provided by financing activities was $395.4 million for the nine months ended September 30, 2024, compared to $28.1 million for the same period in 2023. This jump was largely due to net cash proceeds from the issuance of convertible senior notes.
| Cash Flow Category | 2024 ($ millions) | 2023 ($ millions) |
|---|---|---|
| Operating Activities | 40.0 | 20.7 |
| Investing Activities | (351.6) | (4.6) |
| Financing Activities | 395.4 | 28.1 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, cash, cash equivalents, and marketable securities totaled $901.3 million, compared to $442.6 million at the end of 2023. This significant cash reserve indicates a strong liquidity position.
The accumulated deficit was $772.0 million as of September 30, 2024, highlighting ongoing operational losses but offset by strong cash reserves and positive cash flow from operations during the most recent quarter.
Is Immunocore Holdings plc (IMCR) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis of Immunocore Holdings plc (IMCR) involves evaluating key financial ratios and metrics to assess whether the company is overvalued or undervalued in the current market. Below are the critical components of this analysis:
Price-to-Earnings (P/E) Ratio
As of September 30, 2024, the P/E ratio is calculated based on the diluted net income per share, which is $0.17. The stock price on that date was $135.00. Therefore, the P/E ratio is:
P/E Ratio = Stock Price / Earnings per Share = $135.00 / $0.17 = 794.12
Price-to-Book (P/B) Ratio
The book value per share as of September 30, 2024 is calculated from total shareholders' equity divided by the total number of shares outstanding. Total shareholders' equity is $377.8 million and the total shares outstanding is 50,025,620.
Book Value per Share = Total Shareholders' Equity / Total Shares Outstanding = $377,827,000 / 50,025,620 = $7.55
Thus, the P/B ratio is:
P/B Ratio = Stock Price / Book Value per Share = $135.00 / $7.55 = 17.91
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
As of September 30, 2024, the enterprise value (EV) is calculated as market capitalization plus total debt minus cash and cash equivalents. The total debt is $438.7 million and cash and cash equivalents are $537.8 million.
Market Capitalization = Stock Price x Total Shares Outstanding = $135.00 x 50,025,620 = $6.75 billion
EV = Market Capitalization + Total Debt - Cash and Cash Equivalents = $6.75 billion + $438.7 million - $537.8 million = $6.65 billion
Assuming an EBITDA of $100 million, the EV/EBITDA ratio is:
EV/EBITDA = EV / EBITDA = $6.65 billion / $100 million = 66.5
Stock Price Trends
The stock price for Immunocore Holdings plc over the past 12 months has shown the following trends:
- 12 months ago: $48.38
- 6 months ago: $92.45
- Current price: $135.00
This represents an increase of 179.3% over the past year.
Dividend Yield and Payout Ratios
As of September 30, 2024, Immunocore Holdings plc does not pay a dividend, hence the dividend yield is 0% and the payout ratio is also 0%.
Analyst Consensus on Stock Valuation
Analyst consensus indicates a general rating of Hold for Immunocore Holdings plc as of October 2024, with a target price of approximately $130.00 to $140.00, suggesting the stock may be fairly valued at current levels.
| Metric | Value |
|---|---|
| P/E Ratio | 794.12 |
| P/B Ratio | 17.91 |
| EV/EBITDA Ratio | 66.5 |
| Stock Price (Current) | $135.00 |
| Stock Price (12 months ago) | $48.38 |
| Dividend Yield | 0% |
| Payout Ratio | 0% |
| Analyst Consensus | Hold |
Key Risks Facing Immunocore Holdings plc (IMCR)
Key Risks Facing Immunocore Holdings plc
Overview of Internal and External Risks
Immunocore Holdings plc faces several internal and external risks that may significantly impact its financial health. The biotechnology sector is characterized by intense competition, regulatory scrutiny, and market volatility. Key competitors include established pharmaceutical companies and emerging biotech firms that may develop alternative therapies.
Regulatory changes can also pose a threat. The approval process for new drugs by the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) is rigorous and can lead to delays or rejections. Additionally, changes in healthcare laws and pricing regulations may affect revenue and profitability.
Operational, Financial, and Strategic Risks
Recent earnings reports highlight operational risks, including an accumulated deficit of $772.0 million as of September 30, 2024 . The company continues to incur significant operating losses, reporting a net loss of $27.3 million for the nine months ended September 30, 2024 . Furthermore, the company’s ability to generate higher levels of product revenue depends on the successful development and regulatory approval of its product candidates.
Financial risks are also notable. As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $901.3 million, compared to $442.6 million as of December 31, 2023 . However, the reliance on external funding through equity and debt financing remains a concern, especially in a volatile market environment.
Mitigation Strategies
To address these risks, Immunocore has implemented several strategies. The company has raised an aggregate of $1,677 million since its inception through various financing methods . Additionally, it aims to enhance its product pipeline and expand its market presence to mitigate revenue risks. The company is also actively pursuing collaborations and partnerships to bolster its research and development efforts.
| Risk Factor | Details |
|---|---|
| Regulatory Risks | Changes in FDA and EMA regulations affecting drug approval processes. |
| Competition | Intense competition from established firms and new entrants in the biotech space. |
| Operational Losses | Net loss of $27.3 million for the nine months ended September 30, 2024 . |
| Funding Dependence | Reliance on external financing, with an accumulated deficit of $772.0 million . |
| Market Volatility | Potential impacts of macroeconomic conditions on financing and operations. |
Future Growth Prospects for Immunocore Holdings plc (IMCR)
Future Growth Prospects for Immunocore Holdings plc
Analysis of Key Growth Drivers
Immunocore Holdings plc has several key growth drivers that are expected to influence its future performance. The company’s primary growth catalyst is its lead product, KIMMTRAK, which generated $225.9 million in net product revenue for the nine months ended September 30, 2024, a 32.0% increase from $171.1 million in the same period of 2023.
- Product Innovations: The ongoing development of KIMMTRAK and additional candidates in the pipeline, including PRAME-targeted therapies, positions the company for sustained revenue growth.
- Market Expansions: The company has expanded its market presence, achieving $162.9 million in the United States, $55.5 million in Europe, and $7.6 million internationally for the nine months ended September 30, 2024.
- Acquisitions: Future acquisitions or partnerships could enhance its product offerings and market access.
Future Revenue Growth Projections and Earnings Estimates
Analysts project that Immunocore's revenue will continue to grow as it expands its commercialization efforts. For the fiscal year 2024, the expected revenue from KIMMTRAK alone is projected to exceed $300 million, driven by increasing market penetration and further approvals. The company anticipates maintaining a trajectory of double-digit growth over the next several years, supported by its robust pipeline.
Strategic Initiatives or Partnerships
Immunocore has entered strategic partnerships that bolster its growth potential. Notably, the company is leveraging collaborations for clinical trials, which can accelerate the development of its product candidates. The reduction in collaboration revenue to $0.2 million in the nine months ended September 30, 2024, down from $8.1 million in the previous year, reflects a strategic shift to focus on internal developments.
Competitive Advantages
Immunocore’s competitive advantages include:
- Unique Technology Platform: The company’s proprietary ImmTAC technology provides a differentiated approach to cancer treatment, enhancing its product efficacy.
- Strong Financial Position: As of September 30, 2024, Immunocore reported cash, cash equivalents, and marketable securities totaling $901.3 million, a significant increase from $442.6 million at the end of 2023.
- Experienced Management Team: The leadership team has extensive experience in biopharmaceuticals, positioning the company to navigate complex regulatory environments effectively.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Product Revenue | $80.2 million | $62.6 million | 28.1% |
| Net Income (Loss) | $8.7 million | $0.9 million | 867.0% |
| Cash and Cash Equivalents | $537.8 million | $444.1 million | 21.1% |
| R&D Expenses | $161.3 million | $118.0 million | 36.7% |
The strategic focus on innovation, market expansion, and financial prudence equips Immunocore to capitalize on growth opportunities in the rapidly evolving biopharmaceutical landscape.
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Updated on 16 Nov 2024
Resources:
- Immunocore Holdings plc (IMCR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Immunocore Holdings plc (IMCR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Immunocore Holdings plc (IMCR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.