Iovance Biotherapeutics (NASDAQ:IOVA) experienced a sharp 18% increase in its stock price as the market turns its attention to the upcoming sales performance of its lead therapy, Amtagvi. The biotech firm's shares have climbed 18.2% since July 10, a move that has added approximately $344 million to its equity value, representing 95.5% of the midpoint of its full-year revenue guidance of $360 million.
The rally comes as Iovance prepares to report its second-quarter results, with management projecting product revenue between $86 million and $88 million. This would represent a 20% to 23% increase from the $71.43 million reported in the first quarter. The midpoint of $87 million implies that Iovance will need to generate $191.6 million to $211.6 million in the second half of the year to meet its full-year guidance, or $95.8 million to $105.8 million per quarter, representing a 10% to 22% increase over the second-quarter midpoint.
Interim CEO Frederick Vogt emphasized the company's commercial push, stating in a recent filing, "We are accelerating the adoption and commercial expansion for Amtagvi after record high demand." The company has expanded its authorized treatment centers to over 90, with a goal of reaching at least 110 by year-end. First-quarter revenue from Amtagvi was $60.22 million, with an additional $11.21 million from Proleukin.
The company's gross margin stood at 41% after maintenance and expansion costs, while the net loss narrowed 32% year-over-year to $79.0 million. Cash, investments, and restricted cash totaled $319.4 million, providing funding that management expects to extend well into 2028. However, risks remain significant. Iovance raised $98.5 million in the first quarter through an at-the-market stock sale of 24.9 million shares, which could dilute existing shareholders. The company also cautioned that product revenue may not generate positive operating cash flow in the coming year.
On Friday, the company granted 139,930 stock options to 17 newly hired non-executive staff at an exercise price of $4.66, vesting over three years. This represents approximately 0.03% of shares outstanding as of April 15. The options grant, while not tied to operating performance, contributed to the stock's gain of 7.3% on Friday, with trading volume reaching 23.5 million shares, 57% above the 65-day average.
In comparison, the SPDR S&P Biotech ETF (XBI) dropped 3.0% over the same period, and the Nasdaq Biotechnology Index (NBI) slipped 1.2%. Iovance's stock closed at $5.00 on Friday, reflecting the recent momentum. The upcoming second-quarter results, expected around August 6, will be a critical test to see if Amtagvi's sales can justify the recent re-rating of the stock.
