Immunocore Holdings plc (IMCR) Earnings

Management highlights

- Commercial & Clinical Progress for Lead Product (KimTrack): • Presented 5-year overall survival (OS) data showing KimTrack doubles the 5-year survival rate for HLA-A2 positive metastatic uveal melanoma (16% OS with KimTrack vs 8% with investigator's choice), the longest ever follow-up reported for any randomized trial in this indication and any T-cell engager in solid tumors. • Penetration exceeds 70% in major markets, with a stable 14-month average duration of therapy; 70% of US prescriptions come from community settings, with penetration of ~75-80% in Europe. • Two phase 3 life-cycle management trials are ongoing to expand eligible patient populations 6-fold from the current ~1,000 patients treated annually. - Melanoma Pipeline Progress: • TEBI-AM (phase 3 for second-line+ advanced cutaneous melanoma, post-checkpoint/targeted therapy): Enrollment is near the 540-patient target, with top-line data still expected as early as the end of 2026. This is the first phase 3 trial targeting an OS benefit in this unmet need indication. • ATOM (phase 3 adjuvant uveal melanoma, currently no approved standard of care): Actively enrolling in the US and Europe, with relapse-free survival as the primary endpoint. • PRISM-MEL 301 (phase 3 for first-line cutaneous melanoma, brinetifus + nivolumab): Over 200 sites activated globally, enrollment targeted for completion by late 2027. Phase 1-2 data for brinetifus monotherapy supported selection of the 160-microgram dose for the phase 3 trial, with a 14.3-month median OS in heavily pretreated patients. - Pipeline Expansion Beyond Melanoma: • Brinetifus (PRAME-targeting TCR): Expanding into ovarian and non-small cell lung cancer, with updated data expected by the end of 2026 to inform next development steps. A half-life extended (HLE) PRAME candidate is in phase 1 dose escalation, designed for less frequent dosing and potentially improved response rates. • HIV program (phase 1-2 multiple ascending dose trial): Enrollment of higher dose cohorts up to 1.2 mg is complete, data is under analysis, and results are planned to be shared in early 2027. Preliminary data has already shown delayed viral rebound after treatment interruption in higher-dose patients. • Autoimmunity program: The first patient is expected to be dosed with S118-AI (for type 1 diabetes) in the coming weeks; a CTA for the second autoimmune candidate is on track for submission by the end of 2026. - Financial Highlights: • Q2 2026 R&D expense was $74 million (up from $69 million YoY, driven by advancing three phase 3 trials). SG&A expense was $44 million (up marginally from $43 million YoY). • Q2 2026 net loss was just under $1 million, a significant improvement from a $10 million net loss in Q2 2025. • As of June 30, 2026, cash and marketable securities totaled $880 million, an increase of $16 million since the start of the year.

Guidance

- Sales growth: Moderating growth is expected for KimTrack as the product enters its fifth year on the market and achieves high penetration in major launched markets. The $6 million Q2 2026 US inventory stocking will create a headwind for Q3 2026 US sales. - R&D expenses: Modest year-over-year increase in 2026 R&D spending is expected, at a slower rate of growth than seen in 2025. - Rebate payments: Approximately $120 million in sales-related rebates will be paid in H2 2026 (higher than prior years due to European revenue growth and a 2025 French pricing agreement requiring back payment of five years of accrued rebates). Rebate payments are expected to return to 2025-level amounts (~$65-70 million annually) in 2027. - Clinical data readouts: TEBI-AM top-line data remains on track for as early as the end of 2026; updated brinetifus data for ovarian and non-small cell lung cancer will be presented by the end of 2026; initial HIV program data will be shared in the first half of 2027; PRISM-MEL 301 enrollment completion is targeted for late 2027.

Segment performance

Immunocore has one core commercial product segment: KimTrack (for metastatic uveal melanoma). For the first half of 2026, KimTrack generated $223 million in net revenue, representing 16% year-over-year (YoY) growth versus H1 2025. In Q2 2026 alone, KimTrack net sales reached $116 million, an 18% increase over Q2 2025. Geographic revenue breakdown for Q2 2026: United States contributed $75 million (64.7% of total Q2 KimTrack revenue), Europe contributed $34 million (29.3% of total Q2 revenue), and other international regions contributed $7 million (6.0% of total Q2 revenue). After accounting for a one-time $6 million US distributor inventory stocking in Q2, underlying sequential quarterly growth was 3%, in line with expectations for moderating growth given high market penetration.

Risks & headwinds

- High market penetration for the established KimTrack business will lead to moderating growth, with lower-than-expected revenue expansion. - The TEBI-AM trial could experience delays that push top-line data readout into 2027, even with the remaining enrollees expected to have minimal impact on the primary OS endpoint. - Clinical trial results may not meet the efficacy or safety bar required to advance candidates or support regulatory approval, particularly for pipeline programs in oncology, HIV, and autoimmunity that are still in early stages of development. - Competition from emerging therapies could impact KimTrack market share in first-line uveal melanoma, though management notes KimTrack's well-established five-year OS benefit and favorable safety profile anchor its position as standard of care.

Analyst Q&A

• Q: What is the timing of the TEBI-AM top-line readout, and is there a meaningful risk of delay into 2027? What share of control arm patients are currently on clinical trials vs other treatments? /

  A: While enrollment is still completing the final patients, these late enrollees typically have very little impact on the event-driven primary OS endpoint, which draws from patients enrolled much earlier. Management thus reiterates that a top-line readout can still occur as early as the end of 2026. Based on trial experience and real-world data, less than 10% of patients across the trial use clinical trial options on the control arm.

• Q: Is the 17% YoY US Q2 growth for KimTrack in line with your expectation of moderate growth, and what is current penetration in the US and Europe? What is the community vs academic center split in the US? /

  A: The 17% YoY growth rate was lifted by an unusual one-time $6 million distributor inventory stocking event in Q2. Underlying sequential growth is 3%, which matches the expected moderation of growth after five years on the market and high current penetration. Penetration is above 70% in the US, where 70% of prescriptions come from community settings. Penetration is 75-80% across major European markets.

• Q: What is your expected commercial uptake of TEBI-AM for advanced cutaneous melanoma in the first three years post-launch, if approved? /

  A: The total addressable HLA-A2-positive patient base across the US and EU is ~4,000 patients. This indication has very high unmet need with no approved therapies that demonstrate an overall survival benefit, and KimTrack would be the first off-the-shelf OS-driven therapy available. 50% of current cutaneous melanoma patients are already treated by physicians with experience using KimTrack, so management expects strong uptake if the trial is positive.

• Q: How do you assess competitive risk from EdeA's oral regimen for uveal melanoma, which could include HLA-A2 positive patients in its initial label? /

  A: EdeA's regimen fills an unmet need for HLA-A2 negative patients, who currently cannot use KimTrack and have limited treatment options. For HLA-A2 positive patients, KimTrack is already the established standard of care, backed by robust five-year overall survival data and a well-tolerated long-term safety profile that allows patients to stay on treatment for years. Management expects KimTrack to remain firmly anchored as the first-line standard of care for eligible patients.