Immunocore is the IBD Stock of the Day as the biotech expands its drug pipeline. IMCR stock forged a cup with handle with an entry point of 65.10, and shares climbed above that buy point Monday.
On the stock market today, the biotechnology company jumped 6.5% to close at 65.71. It remains in a buy zone to 68.36.
The company's primary product, Kimmtrak, is a treatment for a form of melanoma. In January, Immunocore preannounced fourth quarter Kimmtrak net sales of $50 million, up 25% from the previous quarter.
The biotech company also preannounced fiscal 2022 sales of $140 million for Kimmtrak in its first year after launch. Immunocore did not provide 2023 top-line guidance for Kimmtrak sales. Analysts currently predict 26% revenue growth in 2023.
Beyond Kimmtrak, Immunocore is also testing other cancer drugs.
Other Immunocore Drugs
In September, Immunocore presented early results from a drug that targets PRAME, an antigen that shows up on some tumor cells.
"Big picture, with a strong Kimmtrak launch, nice pipeline opportunity with PRAME, and a de-risked technology platform, we see ample room for continued upside in IMCR shares as the pipeline continues to advance," JPMorgan analyst Jessica Fye said in a recent note to clients.
Management expects to share more data from PRAME trials in the first half of 2024.
According to one analyst, Immunocore will report fourth-quarter earnings on March 1. Investors may want to be cautious ahead of the earnings report. Also, one strategy around earnings would use call options.
Through Friday's close IMCR stock had climbed 13% thus far in 2023.
Biotech Stock A Pioneer In TCR Therapy
Immunocore pioneered T-cell receptor-based therapy, or TCR therapy. Kimmtrak works by finding cancer cells through a specific genetic mutation. Then, the drug summons a killer T cell to destroy the tumor.
In late 2022, Immunocore forged a deal with gamma delta T cell specialist Gadeta to develop treatments for solid tumors, starting with colorectal cancer.
"This collaboration highlights both the versatility and leading position of Immunocore's platform with expansion to non-HLA (human leukocyte antigen) restricted gamma delta TCR bispecific proteins," BTIG analyst Justin Zelin said in a note.
The company hopes to treat multiple forms of cancer as well as autoimmune and infectious diseases.
With its TCR therapy, the biotechnology company hopes to treat multiple forms of cancer as well as autoimmune and infectious diseases.
IMCR Stock: Narrowing The Losses
For fiscal 2022, analysts see Immunocore losing 44 cents per share, a narrower loss than 2021's $3.14, according to FactSet. Further, Wall Street projects that to shrink to a 36-cent loss in 2023.
Meanwhile, analysts surveyed by FactSet project Immunocore will be profitable beginning in 2025.
Immunocore in January said it has $400 million in cash on its balance sheet, which could fund operations into 2026.
"In the company's Q3 earnings release, gross margins were over 99% due to microbial manufacturing, and we estimate gross margins to stay above 98% through 2035," Cowen analyst Tyler Van Buren said in a note.
He added, "These are the best gross margins we have ever seen and are impressive compared to cell therapy products that cost $100,000 per patient to manufacture. This is also impressive compared to small molecules where gross margins fall in the 90% range due to the added cost of chemistry."
High Relative Strength Rating For IMCR Stock
Founded in 2008, Immunocore began trading after its initial public offering in February 2021.
Meanwhile, the Relative Strength Rating of the biotech company stands at 97, according to IBD Stock Checkup.
In addition, IMCR stock has an Accumulation/Distribution Rating of B. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.
The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling. Think of the C grade as neutral.
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