Immunocore Holdings Plc Q2 FY2025 earnings call

• Strategy anchored on three core pillars: maximizing KIMMTRAK value, advancing clinical portfolio, and innovating for sustainable growth.
• KIMMTRAK generated $192M in H1 2025 revenue, 32% Y/Y growth, 4 years post-launch.
• Expanded global access to KIMMTRAK, launched in 28 countries, approved in 39, and partnered with Er-Kim for Turkey and MENA regions.
• Ongoing 3 Phase III melanoma trials (adjuvants, first-line, late-stage); early-stage programs in oncology and infectious diseases; autoimmune candidates with CTA filing by end-2025 and Phase I trial in 2026.
• Financials: Q2 net sales $98M, 4% sequential growth; net loss decreased from $36M to $5M H1 2025; strong balance sheet with $883M cash/marketable securities.

For the first half of 2025, Immunocore generated $192 million in KIMMTRAK revenue, representing a 32% year-over-year growth. In Q2 specifically, net sales were $98 million. In the United States, Q2 net revenue was $64 million, a 15% increase compared to Q2 '24, with a 68% market penetration and 70% of prescriptions coming from the community. In Europe, Q2 net revenue was $33 million, an exceptional 115% year-on-year quarterly growth, driven by successful launches in the U.K., Poland, and Netherlands, and continued growth in mature markets like Germany.

• KIMMTRAK growth expected to moderate sequentially as it's in the 4th year on the market.
• R&D expenses expected to increase due to investments in Phase III trials and early-stage programs.
• Europe growth anticipated from additional product launches.

• Tariff uncertainties affecting manufacturing costs and supply chain, but have 18 months of inventory in the U.S. to mitigate immediate impact.
• Uncertainty in clinical trial endpoints and timing due to event-driven outcomes in Phase III trials.

Q: Can you talk about where you think the average duration of therapy for KIMMTRAK will settle out at? Are we about there at 13 months? Or do you think we could add another month or potentially more than that?

A: Ralph Torbay said they're happy with the duration of therapy, it's hard to give exact where it'll go, currently at 13 months and expects moderation.

Q: Can you quantify what the impact in Europe is from the previously deferred revenue component?

A: Travis Coy said those pricing negotiations completed in Q1 2025, total revenue reserves last year were about $18 million, roughly spread evenly each quarter last year.

Q: Another question for David, this one on TEBE-AM, possible changing goalposts at the FDA with regard to oncology drug approvals. With regard to TEBE-AM, if you hit on the pembro combination arm but miss on the monotherapy arm, do you have enough evidence to support KIMMTRAK's contribution to the effect?

A: David Berman said in that setting, there's a scientific argument and real-world analysis shows a significant proportion of patients get retreatment with anti-PD-1, so believe control arm will have sufficient anti-PD-1 monotherapy to provide contribution of compliance