Investors are typically quite harsh on publicly traded companies that don't make their quarterly estimates, a dynamic vividly on display Friday with biotech stock Iovance Biotherapeutics (IOVA 3.20%). The company published its second-quarter earnings after market close the previous day, and the market reacted by trading the stock down by more than 20%.
Amtagvi leads the way
Iovance, a commercial-stage biotech that's focused on cell therapies for cancer treatment, reported slightly under $60 million in revenue for the period, which was nearly double the $31 million it earned in the same quarter of 2024. All of this is derived from sales of two products: Amtagvi and Proleukin. The former was by far the company's star, with over $54 million in sales.
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The steep increase in sales didn't filter down into a net profit, however. In fact, Iovance's GAAP (generally accepted accounting principles) net loss deepened during the quarter, coming in at almost $112 million ($0.33 per share) from the year-ago deficit of $97 million.
Also, analysts were expecting Iovance to boost its top line even more. Their consensus estimate for revenue was a shade over $67 million. As for net loss, they were modeling a deficit of only $0.28 per share.
In its earnings release, Iovance nevertheless sounded a bullish note about the future of its two commercialized products. It quoted CEO Frederick Vogt as saying that "Growth for Amtagvi and Proleukin will continue in the second half of 2025 as existing authorized treatment center growth continues and large community practices begin treating patients."
NASDAQ: IOVA
Key Data Points
No move on revenue guidance
Investors might have liked to see that statement bolstered by a guidance raise. However, Iovance stuck to its existing forecast of $250 million to $300 million anchored, of course, by Amtagvi. The company pointed out that this is the first full year of Amtagvi sales, implying the future should be much rosier for the product.
