On Monday, a Piper Sandler analyst downgraded Iovance Biotherapeutics (NASDAQ:IOVA) stock rating from Overweight to Neutral. Accompanying this change is a significant reduction in the price target, now set at $10.00, a drop from the previous $19.00. The adjustment follows reports of a sluggish start for the company's newly approved Amtagvi.
The analyst's decision was influenced by conversations with six Advanced Therapy Centers (ATCs) that revealed only about 10-15% of patients enrolled for Amtagvi treatment have actually received the infusion since the drug's approval. The slow uptake is attributed to extended waits for manufacturing slots, which delay infusion times and may restrict patient eligibility.
These early metrics suggest that Amtagvi's performance is not meeting the expectations for the second quarter of 2024 (2Q24) and the full fiscal year (FY24). Consequently, the revenue forecast for Amtagvi has been lowered to $12 million for 2Q24, contrasting with the consensus estimate of $24 million. Furthermore, the full-year revenue estimate has been adjusted to $84 million, down from the consensus of $131 million.
The challenges faced by Iovance Biotherapeutics in the initial quarter following Amtagvi's approval have led to a reassessment of the drug's commercial trajectory. With the revised price target reflecting these concerns, the company's stock rating has been downgraded as it navigates the early stages of Amtagvi's market introduction.
In other recent news, Iovance Biotherapeutics reported a net loss of $113 million for the first quarter of 2024, with revenues of $715,000 from Proleukin sales. The company's advanced melanoma treatment, Amtagvi, has been successful with over 160 patients enrolled and growing demand.
Iovance also announced its submission of a marketing authorization application to the European Medicines Agency for its cancer treatment, lifileucel, which could become the first and only approved therapy for a specific treatment setting in the European Union if successful.
H.C. Wainwright maintained its Buy rating on Iovance, citing the robust data portfolio of lifileucel and the company's successful efforts to receive approval in the U.S. Piper Sandler and Stifel also maintained their positive ratings on the company, citing promising clinical trial results and the potential of Amtagvi.
In addition, the company's Annual Meeting of Stockholders resulted in the election of seven board members and approval of key proposals, including amendments to equity plans. Shareholders also endorsed the executive officers' compensation and ratified Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2024. These are among the recent developments for Iovance Biotherapeutics.
InvestingPro Insights
As Iovance Biotherapeutics (NASDAQ:IOVA) grapples with the slower-than-expected uptake of Amtagvi, the biotech's financial health and market performance provide additional context for investors. According to real-time data from InvestingPro, Iovance holds a market capitalization of $2.59 billion. Despite the challenges, the company has a notable cash position, holding more cash than debt on its balance sheet, which could be a strategic advantage as it works through the commercialization hurdles of Amtagvi.
InvestingPro Tips highlight that analysts are still expecting sales growth in the current year, even though they do not anticipate the company will be profitable within the same timeframe. This dichotomy suggests that while the market sees potential in Iovance's pipeline, the immediate financial returns may not be forthcoming. Additionally, the company has seen a significant return over the last week, indicating some investor confidence in its longer-term prospects.
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