Immunocore’s extended runway

The $100 million upfront payment from Immunocore Ltd.’s most recent deal with Roche’s Genentech Inc. unit gives it enough cash to read out pivotal data from lead program IMCgp100, a catalyst that could help justify its lofty valuation and open up additional financing opportunities.

However, the fact it needed the partnering cash to begin with highlights how high valuations and big raises aren’t guarantees of easy access to future financing.

Immunocore splashed onto the scene in July 2015 with a $320 million series A round backed by Woodford Investment Management, Malin Corp. plc, Baker Brothers, RTW Investments, Eli Lilly and Co. and other undisclosed investors. At the time, it was the largest-ever European venture financing.

What followed was a period of rapid expansion, both in terms of headcount, physical footprint and valuation, which peaked at $1.3 billion, not including potential exercise of share options.

But that expansion cost money. At the end of 2017, Immunocore reported a cash position of £117 million ($158.3 million) and a 12-month operating loss of £67.5 million ($91.3 million) — giving it less than two years’ runway.

The Genentech cash allows Immunocore to stretch its runway beyond 2020, when IMCgp100 (ImmTAC-gp100) could be ready for commercial launch in uveal melanoma.

Since the start of the year, Immunocore has also seen a C-suite exodus, with five departures, headlined by that of CEO Eliot Forster in February.

https://www.biocentury.com/biocentury/product-development/2018-12-14/how-immunocore%E2%80%99s-100m-deal-gives-it-enough-runway-