Immunocore Holdings plc (IMCR): Business Model Canvas [11-2024 Updated]

Immunocore Holdings plc (IMCR) is revolutionizing cancer treatment with its innovative approach to T-cell receptor (TCR) bispecific therapies. At the forefront of this biopharmaceutical landscape, Immunocore's Business Model Canvas highlights key partnerships with industry leaders like Genentech and the Gates Foundation, as well as a robust pipeline that includes the groundbreaking therapy KIMMTRAK. Dive deeper to explore how this unique model positions Immunocore for success in the competitive oncology market.

Immunocore Holdings plc (IMCR) - Business Model: Key Partnerships

Collaborations with Genentech and BMS

Immunocore has established a significant collaboration with Genentech, initiated in June 2013. Under this partnership, Genentech made an initial upfront payment of $20 million for exclusive licenses to two of Immunocore's targets, including MAGE-A4. The collaboration focuses on developing soluble TCR bispecific therapeutic candidates, which are critical in advancing Immunocore's therapeutic pipeline.

As of September 30, 2024, revenue from collaboration agreements with Genentech decreased to $0.2 million from $8.1 million in the prior year, primarily due to the closure of the Phase 1 clinical trial.

Partnership with the Gates Foundation for Neglected Diseases

Immunocore has formed a partnership with the Gates Foundation aimed at developing therapies for neglected diseases, specifically targeting HIV. This collaboration emphasizes the development, manufacture, and commercialization of soluble TCR bispecific therapeutic candidates to provide affordable treatments in developing countries.

In a notable financial transaction, Immunocore raised approximately $15 million in a private placement to the Gates Foundation during its IPO in February 2021. This partnership is crucial in aligning Immunocore's goals with global health initiatives and expanding its market reach into underserved regions.

Strategic Alliances for Clinical Trials and Product Development

Immunocore’s strategic alliances extend to various contract research organizations (CROs) that facilitate its clinical trials and product development. For the nine months ended September 30, 2024, the company reported total R&D expenses of $161.3 million, reflecting an increase of 36.7% from the previous year, largely due to external R&D expenses associated with its clinical programs.

External R&D expenses for specific programs included:

Program	Expenses (2024, in thousands)	Expenses (2023, in thousands)	% Increase
PRAME programs	$67,144	$37,300	80.0%
Tebentafusp programs	$18,766	$10,630	76.5%
Infectious disease programs	$5,009	$4,272	17.3%
All other external clinical and preclinical costs	$17,309	$13,733	26.0%

This strategic focus on R&D partnerships not only enhances Immunocore's capabilities in drug development but also plays a pivotal role in advancing its clinical trials, which are essential for bringing new therapies to market.

Immunocore Holdings plc (IMCR) - Business Model: Key Activities

Research and development of TCR bispecific therapies

Immunocore Holdings plc focuses extensively on the research and development of T cell receptor (TCR) bispecific therapies. For the nine months ended September 30, 2024, the company reported total research and development (R&D) expenses of $161.3 million, an increase from $118.0 million in the same period of 2023, reflecting a growth of 36.7%.

The breakdown of external R&D expenses shows significant investment in various programs, including:

Program	2024 ($ thousands)	2023 ($ thousands)	Increase ($ thousands)	% Increase
PRAME programs	67,144	37,300	29,844	80.0
Tebentafusp programs	18,766	10,630	8,136	76.5
Infectious disease programs	5,009	4,272	737	17.3
All other external clinical and preclinical costs	17,309	13,733	3,576	26.0

Clinical trials for product candidates like KIMMTRAK and brenetafusp

Clinical trials are a cornerstone of Immunocore's operations. The company is actively conducting clinical trials for its lead product, KIMMTRAK (tebentafusp), and other candidates within its pipeline, including brenetafusp. The external R&D expenses for tebentafusp alone increased by $6.0 million due to advanced trials.

As of September 30, 2024, the company reported that KIMMTRAK generated $225.9 million in net product revenue for the nine months ended September 30, 2024, up from $171.1 million in the same period the previous year. The revenue breakdown is as follows:

Region	2024 Revenue ($ thousands)	2023 Revenue ($ thousands)	Increase ($ thousands)	% Increase
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

Commercialization and marketing of approved products

In terms of commercialization, Immunocore has made significant strides in marketing KIMMTRAK. The company's sales and marketing expenses for the nine months ended September 30, 2024, totaled $113.5 million, up from $103.0 million in the same period in 2023. This increase includes:

• Salaries and other employee-related costs: $37.1 million (up from $25.0 million)
• Share-based compensation expense: $19.6 million (down from $20.0 million)
• Selling and commercial costs: $35.3 million (down from $36.6 million)
• Other administrative expenses: $21.5 million (up from $21.4 million)

Overall, the company's focus on expanding its commercial footprint and enhancing its marketing efforts has contributed to the increase in product revenue and market presence.

Immunocore Holdings plc (IMCR) - Business Model: Key Resources

Proprietary ImmTAX platform for drug development

The ImmTAX platform is central to Immunocore's drug development efforts, focusing on the creation of T-cell receptor (TCR) therapeutics. This platform enables the company to design and develop treatments that mobilize the immune system to target and destroy cancer cells. The technology is pivotal in the development of KIMMTRAK (tebentafusp), which received FDA approval in February 2022 for treating metastatic uveal melanoma.

Experienced research and development team

Immunocore's R&D team comprises over 150 skilled professionals, including scientists and clinical experts, dedicated to advancing its pipeline of therapies. The team is focused on ongoing clinical trials and expanding the therapeutic applications of its TCR technology. This expertise is crucial for navigating the complexities of drug development and regulatory approval processes.

Financial resources including $901.3 million in cash and marketable securities

As of September 30, 2024, Immunocore reported cash, cash equivalents, and marketable securities totaling $901.3 million. This financial position provides the company with substantial liquidity to fund its operations, research and development, and commercialization efforts. The increase in cash reserves is attributed to successful financing activities, including the issuance of $402.5 million in convertible senior notes in February 2024.

Financial Data	As of September 30, 2024	As of December 31, 2023
Cash and cash equivalents	$537.8 million	$442.6 million
Marketable securities	$363.5 million	$0
Total assets	$1,084.6 million	$597.0 million
Accumulated deficit	$772.0 million	$744.7 million
Net income (loss) for nine months ended	$(27.3 million)	$(35.6 million)
Total revenue for nine months ended	$226.2 million	$179.3 million

This robust financial foundation allows Immunocore to sustain its R&D activities while pursuing the commercialization of its innovative therapies. The combination of proprietary technology, a skilled workforce, and significant financial resources positions Immunocore favorably in the competitive biopharmaceutical landscape.

Immunocore Holdings plc (IMCR) - Business Model: Value Propositions

Innovative therapies targeting cancer and autoimmune diseases

Immunocore Holdings plc focuses on developing innovative therapies using its proprietary ImmTAC technology platform. The primary product, KIMMTRAK (brenetafusp), is an ImmTAC therapy that targets cancer cells by redirecting T-cells to attack tumors. In 2024, the company reported a net product revenue of $225.9 million for the nine months ended September 30, reflecting a 32.0% increase compared to $171.1 million in the same period of 2023 .

First approved treatment for metastatic uveal melanoma in over 40 years

KIMMTRAK is notably the first approved treatment specifically for metastatic uveal melanoma in over four decades, receiving FDA approval in 2022. This milestone not only provides a significant value proposition for patients suffering from this rare cancer but also positions Immunocore as a pioneer in this therapeutic area. As of September 30, 2024, the total product revenue from KIMMTRAK in the United States was $162.9 million, a 34.9% increase from $120.7 million in the prior year .

Potential for broad application across various cancers

Immunocore's technology is designed for broad applicability, with ongoing research aimed at expanding the use of its therapies beyond uveal melanoma to other cancers. This includes trials targeting multiple oncology indications, which could significantly enhance the company’s market potential. The total revenue from product sales in Europe was $55.5 million, indicating growing acceptance and commercialization efforts .

Financial Metrics	Q3 2024	Q3 2023	Increase/Decrease	% Change
Product Revenue (Net)	$80.2 million	$62.6 million	$17.6 million	28.1%
Collaboration Revenue	$0.0 million	$2.2 million	($2.2 million)	(100.0%)
Total Revenue	$80.2 million	$64.9 million	$15.4 million	23.7%

As of September 30, 2024, Immunocore's accumulated deficit stood at $772 million, highlighting the ongoing investment in research and development to support its innovative pipeline . The company continues to explore potential collaborations and licensing agreements to strengthen its market position and broaden its therapeutic offerings.

Immunocore Holdings plc (IMCR) - Business Model: Customer Relationships

Focus on Building Relationships with Healthcare Providers

Immunocore Holdings plc prioritizes building strong relationships with healthcare providers to ensure effective communication and support for their products, particularly KIMMTRAK. This strategy is reflected in their significant product revenue, which for the nine months ended September 30, 2024, was $225.9 million, a 32% increase from $171.1 million in the same period of 2023.

Patient Assistance Programs to Enhance Access to Treatments

Immunocore has implemented patient assistance programs aimed at improving access to treatments. These programs are essential in addressing the financial barriers that patients may face. The company generated $162.9 million from the United States, $55.5 million from Europe, and $7.6 million from international markets through the sale of KIMMTRAK during the nine months ended September 30, 2024.

Region	Product Revenue (in $ millions)	Percentage Increase from 2023
United States	$162.9	34.9%
Europe	$55.5	12.5%
International	$7.6	572.8%

Engagement with Patient Advocacy Groups for Support and Education

Engagement with patient advocacy groups is another crucial aspect of Immunocore's customer relationship strategy. These collaborations enhance patient education and support, facilitating a better understanding of KIMMTRAK's benefits and usage. As of September 30, 2024, Immunocore's total assets reached $1.08 billion, an increase from $597 million as of December 31, 2023, indicating a solid financial foundation to support such initiatives.

Immunocore Holdings plc (IMCR) - Business Model: Channels

Direct sales to healthcare providers and hospitals

Immunocore Holdings plc primarily generates revenue through direct sales of its product, KIMMTRAK, to healthcare providers and hospitals. For the nine months ended September 30, 2024, the company reported net product revenue of $225.9 million, with $162.9 million coming from the United States, $55.5 million from Europe, and $7.6 million from international markets. The increase in revenue reflects a growth rate of 32.0% compared to the same period in 2023, driven by increased sales volume and expanded market presence.

Distribution partnerships for global reach

To enhance its global reach, Immunocore has established distribution partnerships. Notably, the company has a collaboration with Medison Pharma Ltd, contributing to its revenue streams. For the nine months ended September 30, 2024, partnered revenue accounted for $10.1 million, indicating the importance of these partnerships in expanding market access. The strategic alliances enable the company to penetrate new markets effectively and leverage the existing distribution networks of its partners.

Online resources and educational materials for healthcare professionals

Immunocore invests in providing online resources and educational materials aimed at healthcare professionals. This initiative is crucial for promoting understanding and adoption of KIMMTRAK among oncologists and other healthcare providers. The company’s educational outreach includes webinars, online training modules, and comprehensive product information designed to facilitate informed prescribing practices. Such resources not only enhance product visibility but also drive engagement with healthcare professionals, ultimately supporting direct sales efforts.

Channel	Revenue (9 Months Ended September 30, 2024)	Revenue (9 Months Ended September 30, 2023)	Growth Rate (%)
Direct Sales (U.S.)	$162.9 million	$120.7 million	34.9%
Direct Sales (Europe)	$55.5 million	$49.3 million	12.5%
Direct Sales (International)	$7.6 million	$1.1 million	572.8%
Partnered Revenue	$10.1 million	$2.6 million	288.5%

The table illustrates the significant contributions from different channels, emphasizing the efficiency of direct sales and the impact of partnerships. The overall performance highlights the effectiveness of Immunocore's channel strategy in driving revenue growth as of 2024.

Immunocore Holdings plc (IMCR) - Business Model: Customer Segments

Oncologists and healthcare providers treating cancer patients

Immunocore Holdings plc primarily targets oncologists and healthcare providers who are responsible for the treatment of cancer patients. The company’s leading product, KIMMTRAK (tebentafusp), is specifically indicated for treating metastatic uveal melanoma. As of September 30, 2024, KIMMTRAK generated approximately $162.9 million in revenue from the United States, reflecting a 34.9% increase compared to the previous year.

Patients with metastatic uveal melanoma and other cancers

The end-users of KIMMTRAK include patients diagnosed with metastatic uveal melanoma. This patient segment is critical as the drug has received approval specifically for this indication, marking a significant advancement in treatment options for this rare cancer. In the nine months ended September 30, 2024, the company reported a total product revenue of $225.9 million, a 32.0% increase from $171.1 million in the same period in 2023.

Global markets where KIMMTRAK is approved

KIMMTRAK is approved in multiple global markets, contributing to Immunocore's revenue streams. The breakdown of product revenue by region for the nine months ended September 30, 2024, is as follows:

Region	Revenue (in thousands)	Increase/Decrease (in thousands)	% Increase/Decrease
United States	$162,900	$42,178	34.9%
Europe	$55,454	$6,161	12.5%
International	$7,583	$6,456	572.8%
Total	$225,937	$54,795	32.0%

This demonstrates significant growth in both established and emerging markets, indicating Immunocore's expanding reach and the increasing utilization of KIMMTRAK in oncology practices.

Immunocore Holdings plc (IMCR) - Business Model: Cost Structure

Significant R&D expenditures for clinical trials and product development

The total research and development (R&D) expenses for Immunocore Holdings plc for the nine months ended September 30, 2024, amounted to $161.3 million, which represents a 36.7% increase from $118.0 million for the same period in 2023. This increase was primarily driven by external R&D expenses totaling $108.2 million, which rose by 64.1% from $65.9 million in 2023. The detailed breakdown of external R&D expenses is as follows:

R&D Program	2024 (in thousands)	2023 (in thousands)	Increase/Decrease	% Increase/Decrease
PRAME programs	$67,144	$37,300	$29,844	80.0%
Tebentafusp programs	$18,766	$10,630	$8,136	76.5%
Infectious disease programs	$5,009	$4,272	$737	17.3%
All other external clinical and preclinical costs	$17,309	$13,733	$3,576	26.0%
Total external R&D expenses	$108,228	$65,935	$42,293	64.1%

Internal R&D expenses, which include salaries and other employee-related costs, amounted to $53.1 million, slightly up by 2.0% from $52.0 million in the previous year.

Marketing and sales expenses associated with product launches

For the nine months ended September 30, 2024, Immunocore's selling, general, and administrative (SG&A) expenses reached $113.5 million, compared to $103.0 million for the same period in 2023, an increase of 10.1%. The significant components of SG&A expenses included:

Expense Category	2024 (in thousands)	2023 (in thousands)	Increase/Decrease	% Increase/Decrease
Salaries and other employee-related costs	$37,104	$24,984	$12,120	48.5%
Share-based compensation expense	$19,552	$20,024	($472)	(2.4%)
Selling and commercial costs	$35,321	$36,624	($1,303)	(3.6%)
Other administrative expenses	$21,480	$21,414	$66	0.3%
Total SG&A expenses	$113,457	$103,046	$10,411	10.1%

Operational costs related to maintaining compliance as a public company

Immunocore incurs substantial operational costs to maintain compliance as a public company, which include expenses associated with legal, accounting, audit, regulatory, and consulting services. The company reported a net loss of $27.3 million for the nine months ended September 30, 2024, compared to a net loss of $35.6 million for the same period in 2023. These operational costs are essential for fulfilling Nasdaq listing requirements and SEC regulations, as evidenced by an increase in accrued expenses from $119.8 million to $197.2 million over the same period.

Immunocore Holdings plc (IMCR) - Business Model: Revenue Streams

Product revenue from sales of KIMMTRAK

For the nine months ended September 30, 2024, Immunocore generated product revenue, net of $225.9 million from the sale of KIMMTRAK. This revenue breakdown by region is as follows:

Region	Revenue (in thousands)	2024	2023	% Increase
United States	$162,900	$120,722	34.9%
Europe	$55,454	$49,293	12.5%
International	$7,583	$1,127	572.8%
Total	$225,937	$171,142	32.0%

This increase in product revenue is attributed to a rise in sales volume in the United States and the expansion of commercialization efforts globally.

Potential milestone payments and royalties from collaborations

Collaboration revenue significantly decreased to $0.2 million for the nine months ended September 30, 2024, down from $8.1 million in the same period of 2023, reflecting a reduction in activities related to the Genentech collaboration. This decrease was primarily due to the closure of a Phase 1 clinical trial under the terms of this agreement.

Future revenue from additional product approvals and launches

As of September 30, 2024, Immunocore has ongoing efforts aimed at expanding KIMMTRAK's indications and territories. The company anticipates that the continued advancement of its clinical trials and research and development programs will lead to future revenue streams from additional product approvals. The company's accumulated deficit stood at $772.0 million as of that date, indicating a need for continued investment and revenue generation to support its growth strategy.

Overall, the revenue framework for Immunocore focuses on maximizing product sales from KIMMTRAK, strategically leveraging collaboration agreements, and pursuing future product approvals to enhance financial stability and growth potential.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.