Immunocore Holdings plc (NASDAQ:IMCR), a biotechnology company specializing in biological products, announced today that it has fully prepaid the outstanding loan under its agreement with Pharmakon Advisors, terminating the material definitive agreement that was set to mature on November 8, 2028.
The prepayment, which was made on Friday, November 8, 2024, by Immunocore Limited, a subsidiary of Immunocore Holdings, amounted to $52.0 million. This sum included the $50.0 million principal, $0.5 million in accrued interest, and a prepayment premium and other expenses totaling $1.5 million as stipulated in the Pharmakon Loan Agreement.
The Pharmakon Loan Agreement, initially signed on November 8, 2022, involved Immunocore Limited as the borrower, with additional credit parties and guarantors, BioPharma Credit PLC as the collateral agent, and BPCR Limited Partnership and BioPharma Credit Investments V (Master) LP as the lenders.
With the prepayment completed, all obligations of Immunocore Limited and Immunocore Holdings under the Pharmakon Loan Agreement have been fulfilled and the agreement has been discharged. The decision to prepay and terminate the agreement will release the company from its future financial commitments under the terms of the loan.
Details regarding the terms of the Pharmakon Loan Agreement were previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 28, 2024. The full text of the Pharmakon Loan Agreement was filed as Exhibit 99.4 to the company's Report on Form 6-K with the SEC on November 9, 2022.
InvestingPro Insights
Immunocore Holdings' decision to prepay its loan aligns with its strong financial position, as highlighted by recent InvestingPro data. The company's market cap stands at $1.72 billion, reflecting its significant presence in the biotechnology sector. Notably, InvestingPro Tips reveal that Immunocore "holds more cash than debt on its balance sheet" and "liquid assets exceed short-term obligations," which likely facilitated the early loan repayment.
Despite the positive cash position, investors should be aware that Immunocore is "not profitable over the last twelve months" and "analysts do not anticipate the company will be profitable this year." This context underscores the importance of the company's strategic financial management, including the decision to eliminate future loan obligations.
The company's revenue growth of 27.95% over the last twelve months indicates continued business expansion, which may have contributed to the decision to prepay the loan. For those interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into Immunocore's financial health and market position.
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