Iovance Biotherapeutics (NASDAQ: IOVA), one of the more high-flying biotech stocks of late, fell earthward in trading on Thursday. This was a direct consequence of its latest quarterly figures and operational update that were published after hours on Wednesday and received a fairly negative reaction from investors. The shares closed the day nearly 9% lower, in contrast to the S&P 500 index’s gain of slightly over 0.5%.
A big revenue miss for the fourth quarter
Product revenue, which comprised Iovance’s entire top line, came in at $482,000 for the company’s fourth quarter. It didn’t record any revenue in the same period of 2022.
The biotech company’s costs and expenses grew over that one-year period to nearly $122 million from $107 million. This is the main reason why the net loss deepened to over $116 million ($0.45 per share) from the year-ago shortfall of $105 million.
Analysts had greater expectations for revenue. Collectively, they were estimating that Iovance would report a top line of $1.44 billion. The company also missed on the bottom line, although slightly, as those pundits were collectively expecting only a $0.43 per-share deficit.
Amtagvi soon to get a broader rollout?
Iovance’s major triumph during the quarter was the U.S. Food and Drug Administration’s (FDA) Feb. 16 approval of its Amtagvi cellular therapy to treat advanced melanoma. That was the catalyst for the energetic rally in the company’s shares in recent days.
In the earnings release/update, Iovance quoted its CEO Frederick Vogt as saying that the drug was already experiencing “healthy demand and momentum.”
As for Iovance’s future, Vogt said the company aims to submit regulatory documents in the European Union in the first half of 2024. It will do the same in Canada and the U.K. in the second half of the year.
Should you invest $1,000 in Iovance Biotherapeutics right now?
Before you buy stock in Iovance Biotherapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iovance Biotherapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of February 26, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Iovance Biotherapeutics. The Motley Fool has a disclosure policy.
Why Iovance Biotherapeutics Stock Got Trounced on Thursday was originally published by The Motley Fool
Signup bonus from
