Immunocore Holdings plc — FY2021 Form 20-F
Reporting period: Year ended December 31, 2021. This is an annual report, not a standalone Q4 filing. Financial statements are prepared under IFRS and reported in pounds sterling (£); figures below are in £ millions unless stated otherwise.
Business context
Immunocore is a biotechnology company developing T-cell receptor bispecific medicines through its ImmTAX platform. In 2021, revenue was primarily from collaborations; the company had not yet recorded sales of an approved marketed product. After year-end, the FDA approved KIMMTRAK (tebentafusp) for unresectable or metastatic uveal melanoma on January 26, 2022. The company began U.S. sales in February 2022. In February 2022, the EMA’s CHMP issued a positive opinion recommending approval.
Financial performance and position
| Metric | FY2021 | FY2020 |
|---|---|---|
| Revenue | £26.5m | £30.1m |
| Operating loss | £135.2m | £86.2m |
| Loss before tax | £140.9m | £87.4m |
| Net loss | £131.5m | £74.1m |
| Basic and diluted loss per share | £3.10 | £2.79 |
| Net cash used in operating activities | £96.1m | £61.3m |
| Cash and cash equivalents at year-end | £237.9m | £129.7m |
FY2021 revenue comprised £23.5m collaboration revenue and £3.0m pre-product revenue from compassionate-use sales in France. The operating loss widened as administrative expenses rose to £88.4m from £45.7m, including £31.9m of share-based payment expense and £19.1m of pre-commercial costs. Research and development expense was £73.2m, down from £74.8m. The income tax credit was £9.4m, compared with £13.3m.
At December 31, 2021, total assets were £301.8m, total equity £171.5m, and net current assets (working capital) £201.5m. The Oxford Finance loan had a carrying value of £37.2m; the outstanding principal was $50m. Interest is variable, subject to a 9.01% minimum and 12.01% maximum, and the loan is secured by substantially all assets, including intellectual property. Lease liabilities were £26.6m. The company reported no dividends.
Material changes and unusual items
- Revenue fell £3.6m year over year: collaboration revenue declined £6.6m, partly offset by £3.0m of French compassionate-use revenue. No Lilly collaboration revenue was recognized in 2021 while program focus was reviewed.
- Net loss increased £57.4m. Administrative expense rose £42.7m, mainly reflecting higher IPO-related share-based compensation, pre-commercial launch spending, and public-company costs.
- Operating cash use increased £34.9m. The prior-year comparison benefited from £40.3m of tax receipts in 2020 versus £12.4m in 2021.
- The February 2021 IPO and concurrent Gates Foundation placement generated £211.0m net proceeds. Financing cash inflows were £204.6m in 2021.
- FY2020 included £3.7m profit from lease terminations and £0.8m of settlement income; these did not recur in 2021.
- Share-based payment expense was £35.9m, versus £8.2m in 2020, and was a significant non-cash expense.
Outlook, risks and contingencies
Management expects significant expenses and operating losses to continue as it commercializes KIMMTRAK and advances its clinical pipeline. The company estimates existing cash can fund planned operations through at least Q3 2023 under downside scenarios; including expected U.S. KIMMTRAK revenue and French early-access revenue, it estimates funding into the second half of 2024. These estimates depend on assumptions about launch execution, sales, approvals, and spending; management states additional capital may be needed.
Planned milestones include U.S. commercialization and a European launch subject to approval, a randomized Phase 2 metastatic cutaneous melanoma trial, further Phase 1 data for IMC-F106C and IMC-C103C, and first dosing in the IMC-M113V HIV study. These are plans, not guaranteed outcomes. Key risks include market adoption and payer coverage, KIMMTRAK safety and its cytokine-release-syndrome boxed warning, clinical and regulatory uncertainty, reliance on third-party manufacturers and single-source API suppliers, competition, COVID-19-related trial or supply disruptions, and potential financing needs.
Other notable matters: the GSK collaboration was terminated in January 2022 after the parties elected not to progress remaining programs; no further GSK revenue is expected. A £1.1m contingent lease liability was disclosed. A prior procurement-control material weakness tied to a 2020 kickback investigation was reported as remediated by December 31, 2020; management assessed 2021 internal controls as effective. The company recovered £1.8m in 2020 in connection with that matter. No pending litigation was identified by management as expected to have a material adverse effect.
Key facts for investors to verify
- Whether U.S. launch uptake, pricing, payer coverage, and reimbursement support the stated cash-runway assumptions.
- The status and timing of European and other international approvals and launches, and the commercial terms of regional partners.
- Cash burn, tax-credit receipts, working-capital movements, and the timing and conditions for any additional financing; the Oxford loan’s interest, security, and repayment terms.
- Clinical progress, safety, enrollment, and data quality across the pipeline, especially KIMMTRAK and the early-stage programs.
- Collaboration revenue recognition assumptions and the release schedule for £30.9m of deferred revenue; the filing notes that estimates of project completion affect reported revenue.
- The effect of substantial share-based compensation and potential dilution from outstanding options; year-end ordinary shares outstanding were 43,862,850.