Welcome to First 90 Days, a series dedicated to examining how pharma executives and other leaders are planning for success in their new roles. Today, we’re speaking to Travis Coy, CFO and head of corporate development at Immunocore, which is building on a successful launch of a melanoma drug to become something more.
Immunocore’s new CFO carries a torch for dealmaking. Formerly the head of transactions and M&A for Eli Lilly’s corporate business development, Travis Coy is bringing some of that Big Pharma energy to the mid-sized drugmaker.
Known for its uveal melanoma drug Kimmtrak, which was approved in 2022, Immunocore has a deep pipeline of immunotherapies targeting cancer, autoimmune conditions and infectious diseases. And Coy, who joined the company as both CFO and head of corporate development in January, is scanning the horizon for potential additions to that lineup through partnerships and, potentially, M&A.
Even though Immunocore’s operating budget is a fraction of Lilly’s, the company was sitting on a cash stockpile of just over $900 million as of September, and Coy will oversee the allocation of those funds as the business grows. A trained scientist who has been a member of Immunocore’s board since 2019, he sees business development as a “team sport” between many different aspects of the company.
With upcoming readouts in HIV, HBV and ovarian cancer, as well as a nascent Type 1 diabetes program that could enter the clinic next year, Immunocore is building internally, but M&A is a way the biopharma can become even more entrenched in its core therapeutic areas, Coy said.
"I’ve been in other positions where you’re under pressure to fill a gap, and that’s a tough position to be in. At Immunocore, we can be picky and make sure what we pursue is a fit."
Travis Coy
CFO, head of corporate development, Immunocore
Here, Coy explains his approach to dealmaking, what lessons he brought from Big Pharma, and how he keeps his finger on the pulse of the industry and his eye on ways to grow.
This interview has been edited for brevity and style.
PHARMAVOICE: What is a signal for a company like Immunocore that it’s ready to come to the table for M&A?
TRAVIS COY: Looking at opportunities to enhance the value of the portfolio requires a business development strategy and the funding to go execute. And that’s critical, because it not only tells you what you want to pursue, but it also tells you what you’re not going to pursue. With where we are as a company with a strong balance sheet, we’re in a great position to choose to look at transactions, but we don’t have to take one. I’ve been in other positions where you’re under pressure to fill a gap, and that’s a tough position to be in. At Immunocore, we can be picky and make sure what we pursue is a fit.
We have potential opportunities to bring assets in, and we also have opportunities to look for partnerships that can help us maximize the value of certain assets in the portfolio. Being open to both of those things is an important part of that strategy, but no matter what, the economics have to make sense.
What kind of lessons do you bring from your days at Lilly — right now the biggest pharma in the world — to your position at the more modestly sized Immunocore?
Having been at Lilly for 20 years and seeing the evolution of the company to what it is today, I hope to impart the lesson that prioritization matters. One of the things I’m already appreciating is a reduced amount of bureaucracy, and with that comes a need for leadership that prioritizes. To use an analogy, I have five kids, and that’s a team sport — everybody plays a role, and sometimes you play multiple important roles.
How would you characterize an effective CFO in the life sciences?
Because of the industry we play in, making data-driven investment decisions is critical. Not every investment is going to work out — sometimes it doesn’t play out as you expect, but staying true to making data-driven decisions is how you keep your finger on the pulse. Seeing what’s happening in the industry, the opportunities that exist and the challenges that are coming all play into how you not only deploy capital but also how you raise capital.
In terms of partnerships, what does that look like for Immunocore? What kinds of companies are a good fit?
It’s fairly open, thinking about the business development strategy from an inbound vs. outbound perspective. We will always have manufacturing and clinical partnerships — that’s just how we get work done. But when it comes to strategic partnerships, it’s going to be companies that have demonstrated expertise in an area and might be able to help expand the clinical development profile, particularly in immunology.
What does the M&A landscape look like to you more generally?
I think the market is looking for it, and you saw what happened at J.P. Morgan [Healthcare Conference in January] — you had three acquisitions, and everybody was excited that Monday, but it fizzled out because the market wanted more. You see these cycles. It’s a difficult time for companies to raise capital, but fortunately, we’re not in that position. Small companies have to make tough decisions about whether they give up value in a business development transaction versus being able to invest in it and take it to the next inflection point. Because of our strong balance sheet and where the market stands today with buyers holding a little more power, it’s a good place to be.
When it comes to business development, how do you make sure that fits with the company’s internal plans in R&D and savvy capital allocation?
I started my career at Lilly’s research labs, and I don’t know how many CFOs have a scientific background, but it’s probably a pretty unique position. And business development is a team sport, so you need to approach it in the same way as a research perspective, with a cross-functional team providing insight from all over the organization. Whether they’re bench scientists or your head of R&D, or commercial folks and business development people, it’s about pursuing the best opportunity you can.
