1. Iovance Biotherapeutics Inc. (NASDAQ:IOVA)
Average Upside Potential as of November 21: 187.77%
Iovance Biotherapeutics Inc. (NASDAQ:IOVA) is a biotechnology company developing and commercializing cell therapies, primarily focusing on tumor-infiltrating lymphocyte (TIL) therapy for various solid tumors, including melanoma, renal cell carcinoma, non-small cell lung cancer, and gynecological cancers. Its lead product, Amtagvi, is a TIL therapy approved for metastatic melanoma.
Amtagvi’s FDA approval and successful commercial launch happened in the third quarter of 2024, resulting in a massive 12,385.07% year-over-year revenue improvement for the company, generating an amount of $58.56 million, surpassing expectations.
Amtagvi’s rapid adoption is evident in the increasing number of patient infusions, with 146 patients infused since its launch. This trajectory is expected to continue, with the company targeting a total of 70 authorized treatment centers (ATCs) by year-end. Favorable medical coverage policies and reimbursement are further facilitating broad access to Amtagvi, with ~75% of patients covered by private payers.
The company is well-positioned to capitalize on the significant commercial opportunity for Amtagvi. The US market alone represents a potential $1 billion peak opportunity, and the global market offers multi-billion dollar potential.
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 growth potential of Iovance Biotherapeutics Inc. (NASDAQ:IOVA), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IOVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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