1. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Share Price: $9.39
Analyst Upside Potential: 150.27%
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is a clinical-stage biopharmaceutical company that focuses on developing cancer treatments using a unique method called tumor-infiltrating lymphocyte (TIL) therapy.
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is the best stock to buy under $10 with high potential. The investment case for this biotechnology company is based on several reasons.
The first is the news that the company is set to open around 70 authorized treatment centers in the United States. Why is this important for the company? To understand this we need to look deeply into its treatment.
The company uses Amtagvi to treat patients with melanoma using the TIL therapy method. This method uses the body’s immune cells to fight cancer, specifically targeting solid tumors, which are often more difficult to treat than blood cancers. This treatment requires a month to culture the samples and also requires authorized treatment centers to take samples and keep the patients in care for at least a week.
This is where the news of setting up 70 authorized treatment centers becomes significant. With fewer treatment centers the addressable market of the company was restricted as it was difficult for patients to travel for the treatment. However, with a center in a 200 mile radius around 90% of the patients will automatically become eligible for the treatment thereby placing the company on a growth trajectory.
The second reason why Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) could be a solid investment case lies in its pipeline which indicates there is more growth to come. Currently, the therapy used by the company is not the first-line treatment. However, the company is in phase 3 of clinical trials to test whether Amtagvi is used in combination with the current first-line treatment drug. If the trial is successful the therapy will become the first line of treatment thereby increasing the total addressable market for the company.
Artisan Small Cap Fund stated the following regarding Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) in its Q2 2024 investor letter:
“Among our top detractors for the quarter were Lattice Semiconductor and Iovance Biotherapeutics, Inc. (NASDAQ:IOVA). Iovance Biotherapeutics is a biotechnology company focused on innovating, developing and delivering novel polyclonal tumor-infiltrating lymphocyte (TIL) cell therapies for cancer patients. The stock rallied significantly in Q1 after announcing that the FDA approved AMTAGVI™ (lifileucel) for advanced melanoma. Now that the scientific risk is behind the company, investor focus has shifted to the company’s commercial execution, and shares experienced weakness after the company reported earnings results. It announced the enrollment of more than 100 patients for therapy; however, this was not enough to alleviate investor concerns about patient attrition. In our view, there is no issue with the efficacy of its life-saving treatment. Headwinds have been caused by challenges in ramping production, which is understandable in the early days. We view these concerns as overblown and remain invested.”
While we acknowledge the potential of Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
