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Iovance Biotherapeutics Inc (IOVA)
NASDAQ:IOVA
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Iovance Biotherapeutics
(NASDAQ:IOVA)
Rating:39Underperform
Price Target:
$1.50
▼( -14.77% Downside)
Positive Factors
Cash Reserves
The company ended the quarter with $323.7 million of cash, which, along with future revenue, should fund all ongoing operations into the second half of 2026.
Efficacy Recognition
TIL therapy has set a new standard for efficacy in melanoma, and Iovance is recognized for being the first to commercialize this complex product.
Market Expansion
Iovance Biotherapeutics plans to accelerate growth by focusing on entering ex-U.S. markets such as the U.K., E.U., and Canada.
Negative Factors
Market Competition
The melanoma space is becoming increasingly crowded.
Revenue Guidance Downgrade
The company decreased revenue guidance to $250-300MM (previously $450-475MM) and attributed this to a slower ramp in ATCs.
Revenue Shortfall
Iovance reported total Q1 revenue of $49.3MM (-33% Q/Q), which missed consensus of $82MM by 40%.
Iovance Biotherapeutics (IOVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$611.10M
Dividend YieldN/A
Average Volume (3M)16.00M
Price to Earnings (P/E)―
Beta (1Y)2.23
Revenue Growth11070.12%
EPS Growth32.07%
CountryUS
Employees838
SectorHealthcare
Sector Strength44
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.36
Shares Outstanding333,934,400
10 Day Avg. Volume28,827,626
30 Day Avg. Volume16,001,873
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)1.45
Price to Sales (P/S)0.00
P/FCF Ratio-3.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.54Price Target Upside555.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Iovance Biotherapeutics Business Overview & Revenue Model
Company DescriptionIovance Biotherapeutics, Inc., a clinical-stage biotechnology company, focuses on developing and commercializing cancer immunotherapy products to harness the power of a patient's immune system to eradicate cancer cells. It has six ongoing phase 2 clinical studies, including C-144-01, of its lead product candidate, lifileucel, for the treatment of metastatic melanoma; C-145-04, of its product candidate lifileucel for recurrent, metastatic, or persistent cervical cancer; and C-145-03, of its product candidate LN-145, for recurrent and/or metastatic head and neck squamous cell carcinoma. Iovance Biotherapeutics, Inc. has collaborations and licensing agreements with H. Lee Moffitt Cancer Center; M.D. Anderson Cancer Center; Ohio State University; Centre hospitalier de l'Université de Montreal; Cellectis S.A.; and Novartis Pharma AG. The company was formerly known as Lion Biotechnologies, Inc. and changed its name to Iovance Biotherapeutics, Inc. in June 2017. Iovance Biotherapeutics, Inc. was incorporated in 2007 and is headquartered in San Carlos, California.
How the Company Makes MoneyIovance Biotherapeutics generates revenue through the development and potential commercialization of its TIL-based therapies. The company's revenue model is centered around the successful clinical development and eventual approval of its product candidates, which would allow it to earn revenue through direct sales, partnerships, and collaborations with other pharmaceutical companies. Key revenue streams are anticipated from the commercialization of lifileucel and LN-145, pending regulatory approvals. Iovance may also engage in licensing agreements and collaborations with other biotechnology and pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties. Additionally, the company may receive funding through partnerships or grants that support its research and development activities.
Iovance Biotherapeutics Financial Statement Overview
Summary
Iovance Biotherapeutics is experiencing robust revenue growth with a significant increase in revenue from $1.19 million to $164.07 million. However, profitability remains a major concern as evidenced by negative EBIT and net income margins. The balance sheet shows a stable financial structure with low leverage, but continuous operating losses and significant cash burn highlight financial challenges.Income Statement
Iovance Biotherapeutics has shown significant revenue growth from $1.19 million in 2023 to $164.07 million in 2024, marking a substantial increase. However, the company is still struggling with profitability, as evidenced by negative EBIT and net income margins. The gross profit margin has improved to 24.42%, but the net profit margin remains deeply negative at -226.83%, indicating ongoing challenges in achieving overall profitability.40
Negative
Balance Sheet
The company's balance sheet shows a strong equity position with a debt-to-equity ratio of 0.08, which indicates low financial leverage. Stockholders' equity has grown to $710.41 million, and the equity ratio stands at 78.05%, demonstrating a stable financial structure. However, the company continues to operate with significant net losses, which could impact equity over time.55
Neutral
Cash Flow
Iovance Biotherapeutics has a negative free cash flow of -$364.05 million, which has slightly improved from the previous year. The operating cash flow to net income ratio is slightly negative, reflecting ongoing cash burn challenges. The company has been relying heavily on financing activities to support cash requirements, which may not be sustainable long-term.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 164.07M | 1.19M | 0.00 | 0.00 | 0.00 | Gross Profit |
| 40.08M | -9.57M | -21.14M | -13.98M | -8.71M | EBIT |
| -395.28M | -460.56M | -398.88M | -342.70M | -261.94M | EBITDA |
| -395.28M | -427.43M | -374.76M | -328.27M | -250.87M | Net Income Common Stockholders |
| -372.18M | -444.04M | -389.92M | -327.82M | -257.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 323.78M | 279.87M | 471.85M | 596.00M | 629.44M | Total Assets |
| 910.43M | 780.35M | 663.98M | 777.33M | 768.46M | Total Debt |
| 57.26M | 75.86M | 84.45M | 71.53M | 51.66M | Net Debt |
| -58.43M | -39.03M | -147.28M | -6.70M | -15.67M | Total Liabilities |
| 200.02M | 195.74M | 164.34M | 155.67M | 111.96M | Stockholders Equity |
| 710.40M | 584.61M | 499.64M | 621.66M | 656.50M |
| Cash Flow | Free Cash Flow | |||
| -364.05M | -384.11M | -313.18M | -265.51M | -251.93M | Operating Cash Flow |
| -352.98M | -361.82M | -292.76M | -227.94M | -205.13M | Investing Cash Flow |
| -96.41M | -155.24M | 256.45M | 132.00K | -317.85M | Financing Cash Flow |
| 390.66M | 462.96M | 190.15M | 239.27M | 576.42M |
Iovance Biotherapeutics Technical Analysis
Negative
1.76
Price Trends
3.08
Negative
4.43
Negative
7.06
Negative
Market Momentum
-0.46
Positive
31.54
Neutral
19.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOVA, the sentiment is Negative. The current price of 1.76 is below the 20-day moving average (MA) of 2.67, below the 50-day MA of 3.08, and below the 200-day MA of 7.06, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 31.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IOVA.
Iovance Biotherapeutics Risk Analysis
Iovance Biotherapeutics disclosed 81 risk factors in its most recent earnings report. Iovance Biotherapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We are subject to a variety of U.S. and international laws and regulations. Q4, 2024
2.
Political uncertainty may have an adverse impact on our operating performance and results of operations, and uncertainty surrounding the potential legal, regulatory, and policy changes by a new U.S. presidential administration may directly affect us and the global economy. Q4, 2024
3.
We have global operations, which expose us to additional risks, and any adverse event could have a material adverse effect on our results of operations and financial condition. Q4, 2024
Iovance Biotherapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $1.24B | ― | -12.27% | ― | 3.08% | -247.82% | |
57 Neutral | $1.00B | ― | -36.26% | ― | 127.33% | 21.31% | |
53 Neutral | $5.24B | 3.07 | -43.58% | 2.80% | 16.87% | -0.11% | |
51 Neutral | $1.05B | ― | -49.41% | ― | 4.86% | 10.13% | |
48 Neutral | $800.24M | ― | -93.70% | ― | ― | -25.83% | |
42 Neutral | $1.12B | ― | -69.30% | ― | ― | -68.13% | |
39 Underperform | $611.10M | ― | -51.85% | ― | 11070.12% | 32.07% |
* Healthcare Sector Average
Performance Comparison
IOVA
Iovance Biotherapeutics
1.76
-8.57
-82.96%
PCRX
Pacira Pharmaceuticals
26.14
-4.58
-14.91%
ARDX
Ardelyx
3.99
-3.83
-48.98%
VRDN
Viridian Therapeutics
13.66
0.96
7.56%
SNDX
Syndax Pharmaceuticals
10.65
-10.11
-48.70%
ETNB
89bio
9.61
0.68
7.61%
Iovance Biotherapeutics Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -44.48%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While there are significant achievements like strong first-year revenue, successful international compliance, and positive market expansion prospects, these are tempered by challenges such as a decline in first-quarter revenue, manufacturing issues, a cautious revenue outlook, and increased costs.Q1-2025 Updates
Positive Updates
First Year U.S. Launch Revenue
Generated more than $210 million in revenue in the first 12 months of the U.S. launch of Amtagvi, with infusions from nearly 300 patients.
Successful EMA Inspections
EMA inspected and confirmed that the ICTC and contract manufacturers are GMP-compliant, supporting upcoming EU approval of Amtagvi.
Strong Commercial Network
70 ATCs are part of the treatment network with 79% completing tumor resections, indicating a strong foundation for growth.
Positive Market Expansion Prospects
Anticipated approvals for Amtagvi in the United Kingdom, Canada, and the European Union, with additional submissions in Australia and Switzerland.
Negative Updates
Revenue Decline in First Quarter
First quarter revenue was $49.3 million, lower than previous quarters, due to manufacturing capacity issues and lower Proleukin sales.
Manufacturing Challenges
Higher rates of patient drop-off and lower manufacturing success rates impacted first quarter revenue, although success rates have rebounded.
Revised Revenue Guidance
Revenue guidance was revised to $250 million-$300 million for the full year 2025, reflecting a more conservative outlook.
Increased Cost of Sales
Cost of sales increased significantly due to patient drop-off and manufacturing success rates, impacting gross margin.
Company Guidance
During the Iovance Biotherapeutics First Quarter 2025 Financial Results Conference Call, significant guidance and metrics were outlined. The U.S. commercial launch of Amtagvi generated over $210 million in revenue in its first year, with the first quarter of 2025 alone contributing $49.3 million—$43.6 million from Amtagvi and $5.7 million from Proleukin sales. Despite a reduction in capacity due to scheduled maintenance, there was a record number of production starts in Q2. The revised full-year revenue guidance for 2025 is set between $250 million and $300 million, with expectations for 100-110 commercial patient infusions in Q2. Gross margins are projected to exceed 70% in the coming years. Additionally, the company anticipates potential approvals for Amtagvi in the UK, Canada, and the EU, further expanding its market presence.Iovance Biotherapeutics Corporate Events
Business Operations and Strategy
Iovance Biotherapeutics Optimizes Headquarters for Cost Efficiency
Neutral
Nov 21, 2024
Iovance Biotherapeutics is set to relocate its headquarters within the same building in San Carlos, California, opting for a smaller space to reduce costs amid an increase in remote work. The new lease significantly lowers their monthly rent from $279,540.80 to an initial $99,549.53, reflecting the company’s strategic cost-cutting measures. This move follows the termination of their previous lease for a larger space, highlighting their focus on financial efficiency.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.