Microvast Holdings announces departure of chief financial officer
On Friday, Piper Sandler analyst Joseph Catanzaro adjusted the price target for Iovance Biotherapeutics (NASDAQ:IOVA) to $6.00, down from the previous $7.50. The stock, currently trading at $5.26, has fallen nearly 70% over the past year and recently hit a 52-week low of $5.05. Despite this change, the firm maintained a Neutral rating on the stock. The adjustment followed Iovance’s fourth-quarter earnings report, which showed total revenues of $73.7 million, surpassing both Piper Sandler’s and consensus estimates of $70 million and $72 million, respectively. According to InvestingPro data, analysts expect strong revenue growth of 135% in the current fiscal year.
Iovance’s Amtagvi revenue for the quarter was $48.7 million, falling short of the anticipated $52 million and $54 million from Piper Sandler and consensus estimates. This revenue was generated from 95 infusions of Amtagvi, a slight increase from 82 in the third quarter, indicating a steady monthly infusion rate from October to December. InvestingPro analysis reveals the company’s gross profit margin remains weak at 8.85%, though it maintains a healthy current ratio of 4.22, indicating strong short-term liquidity. Notably, Iovance did not disclose the number of infusions for the period from January 1st to February 27th, a departure from its practice in previous quarters.
Despite the lower-than-expected Amtagvi sales, Iovance reiterated its fiscal year 2025 total product revenue guidance of $450-475 million. To achieve this target, the company would need to administer between 700 and 750 Amtagvi infusions throughout the year, which translates to roughly 60 infusions per month. This is almost double the infusion rate of approximately 31-32 per month that the company experienced at the end of 2024.
Piper Sandler expressed skepticism regarding the achievability of this guidance without a significant acceleration in product launches. The firm’s own estimate for Iovance’s fiscal year 2025 revenue stands at $403 million, which is below the company’s guidance. The new price target of $6 reflects an increase in Piper Sandler’s discount rate, which is used to adjust the valuation of the company’s stock.
In other recent news, Iovance Biotherapeutics reported its fourth-quarter 2024 earnings, revealing a net loss of $0.26 per share, which was slightly better than the anticipated loss of $0.27 per share. However, the company fell short of revenue expectations, bringing in $73.7 million compared to the forecasted $77.3 million. A notable product, EmTagvi, contributed $48.7 million to the quarterly revenue. Despite the revenue miss, Iovance maintains a strong cash position of $422 million as of February 2025. The company has set a revenue guidance range of $450 million to $475 million for 2025, anticipating growth in sales of EmTagvi and Prolukin, particularly with expansion plans into the UK, Canada, and the EU. Additionally, Iovance’s leadership expressed confidence in their growth potential, emphasizing the company’s pioneering position in TIL cell therapy. The company’s strategic focus includes expanding its treatment centers and maintaining financial stability through careful management of operational costs.
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