2. Iovance Biotherapeutics Inc. (NASDAQ:IOVA)
Analyst Upside Potential: 141.77%
Number of Hedge Funds: 33
Iovance Biotherapeutics (NASDAQ:IOVA) is a clinical-stage biopharmaceutical company that develops and delivers tumor-infiltrating lymphocyte (TIL) therapies for patients with solid tumor cancers. Its lead product candidate is Amtagvi (lifileucel), a tumor-derived autologous T-cell immunotherapy. The company is also developing next-generation therapies using TIL, including genetically modified TIL cell therapy.
The company has had a productive year following its first FDA approval and a successful start of the commercial launch of Amtagvi for patients with advanced melanoma in the US. Amtagvi is experiencing strong demand. Iovance Biotherapeutics’ (NASDAQ:IOVA) revenue reached $31.1 million in Q2, including recognized revenue for Proleukin and Amtagvi.
The initial quarter of product revenue from the company’s US launch shows early success in execution, broad patient access, and high awareness. With Amtagvi exhibiting a meaningful benefit for customers undergoing treatment in a commercial setting, the company expects continued launch momentum. It has a very engaged network of more than 50 currently authorized treatment centers (ATCs) with the infrastructure, training, and capabilities to treat patients with this drug.
Iovance Biotherapeutics (NASDAQ:IOVA) is on track to expand this network and will have at least 70 ATCs by the end of 2024. When achieved, this would represent the largest-ever initial ATC network for a cell therapy launch. The company has also initiated its community referral activities to boost additional demand for these ATCs. Strengthened by a strong logistics and scheduling collaboration between ATCs and the company, along with early success with reimbursement, the treatment is becoming faster for patients.
Iovance Biotherapeutics’ (NASDAQ:IOVA) commercial manufacturing capabilities are successfully delivering Amtagvi at an increasing pace, showing that the company is staffed to provide manufacturing slots and meet current and expected demand efficiently. It is scaling up its manufacturing according to growth projections, and has increased capacity and headcount every month since launch. The company ranks second on our list of the the 8 most promising stocks to buy among Wall Street analysts.
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.”
