Iovance Biotherapeutics Stock Soars After the Company Posts Strong Q2 Earnings. Is It Heading Even Higher?
Shares of biopharmaceutical company Iovance Biotherapeutics (IOVA +2.60%) have been skyrocketing lately. The California-based business reported earnings recently, which pleased investors, and that’s putting it lightly, as the stock also hit a new 52-week high.
What’s gotten investors so bullish on the healthcare stock, and is now a good time to buy it?
Image source: Getty Images.
Amtagvi drives significant sales growth for Iovance in Q2
On Aug. 6, Iovance released its second-quarter earnings numbers, which showed strong growth for its promising cancer treatment, Amtagvi (lifileucel). The company’s revenue for the June quarter totaled $99.3 million, which was an increase of 66% from the prior-year period. The lion’s share of the company’s revenue comes from Amtagvi, which was responsible for $91 million.
The Food and Drug Administration approved Amtagvi in early 2024 as a treatment for unresectable or metastatic melanoma. It has the potential to be a blockbuster for Iovance, as it may bring in more than $1 billion in revenue at its peak. However, how much it generates will depend on its approval for other indications.
In addition to generating significant revenue growth this past quarter, the company also drastically reduced its losses during the period. Iovance’s net loss came in at $47.3 million, which was less than half the $111.7 million loss it incurred in the same period last year. As Amtagvi continues to reach more patients and sales grow, there is hope that the business may have a path to profitability, which would make the stock a more attractive investment option for more risk-averse investors.
Today’s Change
(2.60%) $0.17
Current Price
$6.51
Key Data Points
Market Cap
Day’s Range
$6.16 – $6.61
52wk Range
$1.76 – $6.92
Volume
14.6M
Avg Vol
15.9M
Gross Margin
37.14%
Can Iovance’s stock soar higher this year?
Although Iovance’s stock has been red hot of late, I think it can still rise higher. It’s down more than 70% over the past five years, and now, with the business having an approved treatment and significant revenue to show for, it’s not nearly as risky an investment as it was in the past. And with terrific margins, there’s reason to be optimistic that it may get to breakeven in the future. The stock may even become an attractive acquisition target for a larger healthcare company, given its modest market cap of around $3 billion.
There will inevitably be some risk with the stock because of its lack of profitability, but with some tremendous progress and positive signs around Iovance, I wouldn’t be surprised if it were to rise a whole lot higher in the long run. This can be an excellent growth stock for investors who are comfortable taking on some risk and uncertainty.
