Immunocore Holdings plc (IMCR)·Q2 2025 Earnings Summary

Executive Summary

• Immunocore delivered Q2 2025 net product sales of $98.0M (+30% YoY), driven by 15% growth in the U.S., 71% growth in Europe/international and ongoing launches; net loss narrowed slightly to $10.3M with diluted EPS of $(0.20) .
• Revenue modestly beat Wall Street consensus ($97.96M actual vs $92.55M estimate, +5.8%) and EPS was a slight beat (actual $(0.20) vs $(0.206) estimate), continuing the company’s 13th consecutive quarter of KIMMTRAK growth; management flagged sequential growth is moderating as the launch matures .
• Guidance color: R&D spending will increase vs 2024 as Phase 3 programs advance; SG&A expected to be “mostly flat” in 2025; ~$65M sales-related rebate accruals to be paid in 2H 2025 .
• Strategic catalysts: TEBE-AM Phase 3 (2L+ CM) enrollment on track to complete in 1H 2026; PRISM-MEL-301 Phase 3 dose selection in 2H 2025; ATOM Adjuvant UM trial expanding U.S. sites; HBV single ascending dose data slated for AASLD Nov-2025 .

What Went Well and What Went Wrong

What Went Well

• Sustained commercial momentum: Q2 KIMMTRAK net product sales $98.0M (+30% YoY), with U.S. $64.1M (+15% YoY) and Europe $33.0M (+115% YoY quarterly growth), supported by new launches and completed price negotiations in major EU markets .
• Execution across three Phase 3 programs: “Our Phase 3 TEBE-AM trial remains on schedule to complete enrollment in the first half of 2026,” and PRISM-MEL-301 dose selection is “on track” for 2H 2025; ATOM sites expanding via EORTC .
• Improving commercial durability: Management highlighted 13-month average duration of therapy in the U.S., ~68% market penetration, and 70% of prescriptions from community settings, underscoring breadth of adoption and real-world tolerability .

What Went Wrong

• Operating expenses elevated: Q2 R&D rose to $69.0M (from $51.1M YoY) on autoimmune scale-up and Phase 3 trial progression; SG&A increased to $42.8M (from $38.6M) to support global expansion, keeping the company at a quarterly net loss .
• Europe/international variability: While Europe delivered exceptional YoY growth, management noted that international regions exhibit “typical variability” quarter-to-quarter due to buying patterns, and overall sequential growth should moderate as the market matures .
• Profitability timing: CFO cautioned it is “too early” to think about breakeven given increased R&D investment across three Phase 3 trials and broader pipeline, tempering near-term margin improvement expectations .

Financial Results

Note: * Values retrieved from S&P Global.

Segment breakdown (net sales):

KPIs:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We are delighted to announce robust revenue for the first half of 2025, a 32% year-over-year increase… Our Phase 3 TEBE-AM trial remains on schedule to complete enrollment in the first half of 2026” — Bahija Jallal, CEO .
• “We delivered $192,000,000 in net sales for the [first half of] 2025… In Q2 specifically, we achieved $98,000,000 in net sales, marking our thirteenth quarter of consecutive growth” — Ralph Torbay, EVP Commercial .
• “We expect SG&A investments to be mostly flat for the remainder of 2025… we have a strong balance sheet with $883,000,000 in cash and marketable securities” — Travis Coy, CFO .
• “In the Phase 1 trial, we observed that both 40 and 160 micrograms had similar clinical activity… the IDMC will review safety and RESIST efficacy endpoints to select the go-forward dose” — David Berman, EVP R&D .

Q&A Highlights

• Profitability timing: CFO emphasized breakeven is premature given increased R&D investment across three Phase 3 trials; sequential revenue growth expected to moderate .
• TEBE-AM trial design: Management believes control arm will reflect real-world retreatment with anti-PD-1, supporting contribution-of-components if combination arm is positive .
• U.S. duration and penetration: Duration ~13 months; penetration ~68%; community prescribing ~70%; Europe duration trending similar in mature markets .
• Tariffs/supply: Product manufactured in Europe; ~18 months U.S. inventory; tariffs would be non-immediate impact on COGS .
• HIV program: Targeting viral control beyond 12 weeks at higher doses; expansion contingent on longer control and dose selection .

Estimates Context

Additional consensus detail: 12 EPS estimates; 14 revenue estimates for Q2 2025*. Next quarters: Q3 2025 consensus revenue $101.83M*, EPS $(0.240); Q4 2025 revenue $107.82M, EPS $(0.188)*.
Note: * Values retrieved from S&P Global.

Key Takeaways for Investors

• Commercial durability remains strong with a 13-month average duration, broad community adoption, and ongoing ex-U.S. expansion; however, expect sequential growth moderation as the market matures .
• Near-term P&L will reflect elevated R&D for three Phase 3 trials (TEBE-AM, PRISM-MEL-301, ATOM), with SG&A held mostly flat and ~$65M EU rebate payments in 2H 2025 .
• Strategic readouts and decisions in 2H 2025–2026 (PRISM dose selection; TEBE-AM enrollment completion) are key stock catalysts; HBV SAD data at AASLD in Nov-2025 adds pipeline optionality .
• Q2 results modestly beat consensus on revenue and EPS; estimate models may need to reflect sustained U.S. duration and improving European trajectory, balanced by expense intensity .
• Competitive position in mUM remains strong with established OS benefit and standard-of-care status in HLA-A*02:01-positive patients; watch evolving HLA-negative landscape but near-term risk appears manageable per management’s view .
• Risk monitor: regulatory stance on contribution-of-components, tariff/policy uncertainty, and international buying variability could affect quarterly cadence; inventory and design mitigants are in place .