There's nothing like a top-level management departure to get investors worried about a publicly traded company.
Investors in biotech stock Iovance Therapeutics (IOVA +2.74%) were served a strong reminder of the company's latest executive departure earlier in the week. With that headwind blowing in its face, Iovance's shares lost almost 15% of their value during the week, according to data compiled by S&P Global Market Intelligence.
Bye-bye, says executive
Hagens Berman Sobol Shapiro, one of the numerous law firms currently investigating Iovance's activities, was behind the reminder. It pointed out that CFO Jean-Marc Bellemin stepped down from his post earlier in June. His resignation is effective this coming July 10.
Image source: Getty Images.
The law firm hinted that the cancer-focused biotech company's legal headaches were at least partially responsible for this. It wrote in a press release that "Bellemin's exit comes at a tumultuous time, as the company is grappling with a recent commercial setback for its flagship drug, Amtagvi, and the specter of a class action securities lawsuit."
Iovance originally disclosed the CFO's resignation on Friday, June 13 in a tersely worded regulatory filing with the Securities and Exchange Commission (SEC). It said only that Bellemin made the move "to pursue other opportunities." It did not elaborate on this.
NASDAQ: IOVA
Key Data Points
Adding to the struggles
Besides its legal headaches, Iovance is struggling to produce impressive fundamentals. Although it delivered decent top-line growth -- thanks to Amtagvi, a melanoma drug -- it made quite a drastic cut to its product-revenue guidance for the entirety of this year.
I don't think Iovance is in a good place just now. However, Amtagvi still has much potential, and the biotech is a player to watch in the cancer space. It might just be worthy of a buy for investors with a large appetite for risk.
