Citizens JMP reiterates Market Perform rating on Iovance stock

Investing.com - Citizens JMP analyst Reni J. Benjamin reiterated a Market Perform rating on Iovance Biotherapeutics (NASDAQ:IOVA), whose shares have fallen over 75% in the past year, following the company’s report of retrospective real-world results for its Amtagvi therapy. According to InvestingPro data, analysts maintain a bullish consensus with an average price target suggesting significant upside potential.

The real-world results showed higher response rates than those observed in the C-144-01 trial, which led to Amtagvi’s accelerated approval for advanced melanoma patients in the post-PD-1 setting.

Citizens JMP noted that while the results demonstrate "remarkable potential" for TIL therapy post checkpoint therapy, challenges remain in convincing physicians to send earlier-stage patients to Advanced Therapy Centers (ATCs) rather than utilizing treatments available at local centers.

The firm highlighted concerns about ATC ramp, surgeon coordination, and treatment decisions for earlier-stage patients that could result in slower-than-anticipated revenue growth for the therapy.

With Iovance ending the first quarter of 2025 with $366 million in cash and an expected cash burn of approximately $300 million in 2025, Citizens JMP expects the company will need a significant capital infusion within the next six months to continue operations and achieve break-even. While the company maintains a healthy current ratio of 4.18 and holds more cash than debt, InvestingPro’s analysis indicates the company is rapidly burning through its cash reserves. Get detailed insights and 10 additional ProTips for IOVA with an InvestingPro subscription.

In other recent news, Iovance Biotherapeutics announced a real-world study showing a 48.8% objective response rate for its tumor infiltrating lymphocyte therapy, Amtagvi, in advanced melanoma patients previously treated with immune checkpoint inhibitors. Notably, the response rate was higher at 60.9% in less heavily treated patients. Goldman Sachs recently downgraded Iovance Biotherapeutics from Buy to Sell, citing challenges in the adoption of Amtagvi due to operational and logistical issues at treatment centers. The investment firm also expressed concerns about potential international launch challenges and future treatment approvals. In corporate updates, Iovance appointed Matthew W. Rosinack as interim Principal Financial (NASDAQ:PFG) Officer and Principal Accounting Officer following the resignation of Jean-Marc Bellemin. Additionally, Iovance shareholders approved several key proposals, including the election of board members and amendments to incentive plans, indicating strong shareholder engagement. The shareholders also ratified Ernst & Young LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025. These recent developments offer insight into Iovance Biotherapeutics’ current operational and governance strategies.

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