Iovance Biotherapeutics near 52-week low, $19.54 target

Iovance Biotherapeutics is a biotech company focused on cancer treatment. Despite receiving regulatory approval for its therapy, the stock has dropped significantly. Over the last year, shares have fallen 74% and are now just above their 52-week low, sitting under $4. Despite this decline, Wall Street analysts remain optimistic. Their price targets for Iovance range from $6 to $32, with an average of around $19.54. This raises questions about whether the company's future prospects are worthy of such projections. Iovance has developed a treatment called Amtagvi, which uses a patient’s immune cells to fight melanoma. The approval from the U.S. Food and Drug Administration (FDA) last year made Amtagvi the first therapy of its kind for solid tumors. However, the manufacturing process takes 34 days, and treatments can only be administered at specialized centers, which hinders wider availability. In 2024, Iovance reported revenues of $164.1 million, yet it has only started tapping into the potential market of 20,000 melanoma patients in the U.S. The company is also seeking approvals for Amtagvi in other countries, which could provide access to new patients. Concerns about Iovance's profitability remain, especially due to the costly and complex manufacturing process. These worries contribute to the stock's underperformance. However, some believe that the current price offers a good opportunity for investors willing to take risks. There is potential for growth if Iovance can secure more regulatory approvals and expand its market. The company forecasts that its revenue from Amtagvi could reach between $450 million and $475 million in 2025. Furthermore, Iovance is exploring additional treatments that could boost its prospects. As Iovance aims to keep its cash burn below $300 million in 2025, it hopes to improve its financial situation continuously. While significant risks remain, analysts suggest that investors might consider small investments in Iovance at its current price levels.