U.S. stock futures mixed; Nvidia earnings spark little cheer
Investing.com -- Shares of Iovance Biotherapeutics (NASDAQ:IOVA) plummeted 46% following a disappointing first quarter earnings report, which revealed both a miss on revenue expectations and a lowered guidance for the fiscal year 2025.
The biotechnology firm reported a first quarter loss per share of $0.36, which was $0.12 short of the analyst consensus estimate of a $0.24 loss per share. Revenue for the quarter was also below expectations, coming in at $49.3 million against the consensus estimate of $83.27 million. This represents a significant increase from the $0.7 million reported in the same quarter last year, primarily due to the U.S. launch of Amtagvi, but it still fell short of analyst projections.
In the wake of these results, Iovance revised its FY25 total product revenue guidance down to a range of $250 million to $300 million. The company cited a substantial reduction in capacity during annual scheduled maintenance at the Iovance Cell Therapy Center (iCTC) as a key factor impacting first quarter revenue. However, with full production now resumed, Iovance anticipates an increase in infusions for the second quarter.
Despite these setbacks, Frederick Vogt, Ph.D., J.D., Interim President and Chief Executive Officer of Iovance, highlighted the treatment of over 275 Amtagvi patients and the generation of more than $210 million in revenue during the first 12 months of U.S. launch as steps towards the company’s long-term adoption goals. Vogt also noted the anticipation of regulatory approvals for Amtagvi in the UK, EU, and Canada, as well as an update on clinical data from a registrational trial in advanced non-small cell lung cancer (NSCLC) slated for the second half of 2025.
Iovance’s financial position remains solid with approximately $366 million in cash and equivalents as of March 31, 2025, which is expected to fund operations into the second half of 2026. The company also reported a strong patent portfolio that is expected to provide exclusivity through at least 2042.
However, Baird analyst Colleen Kusy downgraded Iovance from Outperform to Neutral with a significantly reduced price target of $3.00 from $20.00. Kusy commented, "Following a big 1Q25 miss and a significant decrease in FY25 sales guidance, on top of a high burn rate, it’s harder for us to model breakeven within a reasonable timeframe." This assessment reflects the challenges ahead for Iovance as it navigates a competitive market and strives to achieve profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.