Anticipation: This Shares will Outperform the Market by 2025
Anticipation: This Shares will Outperform the Market by 2025
This year hasn't been kind to Iovance Biotherapeutics (IOVA) either, losing -0.70% of its value. As a progressive mid-cap biotech company, its performance in the market has been subpar, managing only a 5% growth compared to the market's average. Despite its struggles, Iovance has its wings spread wide with opportunities awaiting.
Several factors could propel the company to surpass its 2025 performance, possibly even outperforming the broader equity market. Let's delve deeper into how Iovance Biotherapeutics might manage this feat.
Amtagvi might take a significant leap
In February, Iovance secured approval from the U.S. Food and Drug Administration (FDA) for Amtagvi, a treatment for advanced melanoma – the most lethal form of skin cancer. Amtagvi is a TIL therapy, which uses patients' own TIL cells to identify and eradicate cancer cells. The process of manufacturing Amtagvi takes 34 days and is carried out in certified authorized treatment centers (ATCs) due to the complexity of this type of therapy.
Although revenue gains for Amtagvi have been substantial, they have not yet shown impressive results. In Q3, Iovance reported $58.6 million in revenue, a significant leap from the $469,000 in Q3 of the previous year. The hindrance in growing the market share for Iovance's TIL therapies, such as Amtagvi, is one of the reasons for its lagging market performance.
Iovance also remains in red figures, reporting a net loss per share of $0.28 in Q3, which is a less daunting figure compared to the $0.46 loss per share in the year-ago period.
Increased treatments for Amtagvi are expected to drive an upsurge in revenue for the company in the coming year, as Iovance aims to penetrate the U.S. market for Amtagvi, estimated to cater to 20,000 patients annually. As of the beginning of Q4, Iovance Biotherapeutics had treated 146 patients, with 84 patients in Q3 and a surging 39 between September 30 and early November.
With a well-established commercial footprint and network of ATCs for Amtagvi, Iovance is likely to experience a substantial increase in treated patients next year in the U.S.
Additionally, Amtagvi might also secure approvals in several nations, including Canada and the U.K., and the European Union, broadening its market reach. Although Amtagvi may not generate significant growth in these regions next year, its approval in these countries will undoubtedly present a considerable opportunity for Iovance Biotherapeutics.
The pipeline hold potential catalysts
Iovance is predicted to release clinical results in the following year that could potentially boost its stock price. Amtagvi is currently being investigated in various studies, including as a potential combination therapy with Merck's renowned cancer drug Keytruda, to treat frontline melanoma. Amtagvi's current approval is for patients who have received specific treatments previously. An expanded label to remove this requirement would significantly expand its market reach.
Amtagvi might also find an appealing target market in non-small cell lung cancer (NSCLC). Lung cancer is the leading cause of cancer-related deaths worldwide, with NSCLC accounting for approximately 80-85% of lung cancer cases. Iovance Biotherapeutics is currently conducting phase 2 and phase 3 studies for Amtagvi and other candidates in targeting NSCLC, with progress updates expected next year.
Furthermore, Iovance's pipeline is bursting with more than a dozen programs. This bodes well for the company's growth perspective beyond 2025.
The long-term perspective
While it's impossible to accurately foretell the future, Iovance Biotherapeutics could experience a breakout year in 2025. However, several roadblocks could also arise, such as regulatory challenges, clinical trial failures, or Amtagvi failing to make significant headway in its target market. These potential setbacks highlight why Iovance Biotherapeutics is a riskier biotech investment.
Although the company is forward-thinking – with TIL therapies providing a relatively new anti-cancer methodology – profitability remains an elusive goal, and its success hinges on delivering a series of positive clinical results. Moreover, the difficulty of administering TIL therapies complicates matters for Iovance Biotherapeutics, as the cash flow timing for these medications is extended compared to that of simple oral drugs.
Despite these challenges, Iovance Biotherapeutics might conquer these hurdles and generate significant returns for its shareholders. Those with heightened risk tolerance should consider investing in the stock, while those with a lower appetite for risk should observe from a distance for now.
Due to the approval of Amtagvi for advanced melanoma and Iovance's efforts to expand its market reach, investing in Iovance Biotherapeutics could potentially yield high returns. The company's pipeline, filled with promising TIL therapies like Amtagvi, also holds the potential to serve as catalysts, boosting its stock price in the future.
As Iovance biotherapeutics navigates regulatory challenges and clinical trials, finance-savvy investors with a higher risk tolerance might find an opportunity to back the company, eyeing potential significant returns. Meanwhile, those with a lower appetite for risk may opt to observe the company's progress from a distance.