Analyst Yanan Zhu of Wells Fargo maintained a Buy rating on Iovance Biotherapeutics, retaining the price target of $18.00.
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Yanan Zhu has given his Buy rating due to a combination of factors that favor Iovance Biotherapeutics. One major reason is the setback faced by a competitor, Replimune Group, whose application for a combination therapy involving RP1 and nivolumab received a complete response letter from the FDA. This development is seen as beneficial for Iovance, as it protects the initial growth opportunity for their product, AMTAGVI, during a critical period when healthcare centers are becoming more adept at its use.
Another factor contributing to the Buy rating is the complexity and time required for Replimune to address the issues raised by the FDA. The concerns about the trial design and patient population in Replimune’s study highlight potential weaknesses in their program, which Iovance had previously identified. This situation reduces competitive pressure on Iovance, enhancing their market potential and supporting the positive outlook for their stock.
In another report released on July 15, Barclays also maintained a Buy rating on the stock with a $4.00 price target.
IOVA’s price has also changed dramatically for the past six months – from $5.990 to $3.130, which is a -47.75% drop .