For a roller-coaster stock, look no further than Iovance Biotherapeutics (IOVA -1.22%).
This company in the inherently volatile biotech sector peaked after getting its first drug approved by the Food and Drug Administration (FDA). Almost as quickly, it dove in price following less positive developments. Let's take a glance at why this cancer-focused drug developer has been so up-and-down, and whether it has the chance of ascending meaningfully again.
Iovance saw a quick rise, and then a sustained fall
Since that burst of optimism following said approval, Iovance shares have generally been on a downward trajectory -- $1,000 invested in the company only three years ago would have melted to barely over $219 today.
Image source: Getty Images.
Because drug approval is the major biotech industry goalpost, the market got excited when Iovance earned that initial nod from the FDA. This occurred in February 2024 with Amtagvi, its cellular therapy approved for the treatment of certain types of melanoma (a skin cancer).
That holiday didn't last long, however, as Iovance posted disappointing quarterly results later that month. That disappointed feeling among investors hasn't entirely dissipated, as Amtagvi is a very complex medicine requiring specialized treatment centers and great care in how it's administered. Sales growth, therefore, has been disappointingly slow to some.
Iovance is just getting started
Amtagvi isn't the only drug in Iovance's commercial portfolio. At the start of 2023, it purchased the worldwide rights to an existing FDA-approved cancer treatment called Proleukin. That drug hasn't been an inspiring performer, though, with sales falling steeply on a year-over-year basis in the second quarter. The far more promising Amtagvi saw a more than fourfold increase over that stretch.
That product alone provides hope for the beaten-down Iovance. It's been administered to relatively few patients, given the total addressable market in the U.S.; meanwhile, it's being developed as a treatment for other cancers. This certainly gives its maker decent potential as a sleeper healthcare stock.
