If you're looking for a stock that may skyrocket, it's often important to start small. By this, I mean uncovering names that aren't on everyone's radar screen -- and often, these are companies that are in the early stages of their growth stories.
In the world of biotech, this might be a company that's years away from commercializing a product. But, once in a while, you may find a player that recently won its first product approval, yet hasn't attracted the attention of the investment community. These opportunities are exciting because such companies are set to generate revenue right away.
With this in mind, let's check out one nearly unknown biotech stock set to go parabolic if its pipeline hits.
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Reaching an exciting moment
The company I'm talking about is Iovance Biotherapeutics (IOVA 16.12%), which has reached an exciting moment in its life as a biotech company. Two years ago, Iovance proved the strength of its technology by scoring approval for its first product, lifileucel -- commercialized as Amtagvi for melanoma that can't be completely removed by surgery or melanoma that has spread. And, importantly, the company continues to study lifileucel across many cancer indications.
NASDAQ: IOVA
Key Data Points
Amtagvi is a tumor infiltrating lymphocyte (TIL) treatment. TIL are naturally found in the body, and their job is to attack cancer cells. But when cancer invades the body, TIL often are weakened and can't fulfil these goals. That's when lifileucel/Amtagvi come in. This treatment involves collecting a patient's TIL, reinvigorating these cells, and then returning them to the patient. These TIL, specific to each patient, then go on to recognize and fight off that patient's cancer.
Iovance isn't yet profitable, which is common among biotechs at this stage of development, but Amtagvi is starting to deliver growth. The company posted a 13% increase in revenue to $68 million in the latest quarter.
Strong performance among patients
A recent study brought the company good news: Amtagvi in real-world conditions achieved a 52% objective response rate after two or fewer previous lines of therapy -- this is higher than the 31% figure from a clinical trial that supported the treatment's accelerated approval. This data, supporting early Amtagvi treatment, should encourage more doctors to turn to Amtagvi for their patients.
This positive performance also is reason to be optimisic about the pipeline. As mentioned, Iovance is studying lifileucel in many cancers as well as in use with other cancer treatments. Many of these trials are phase 2, suggesting that another indication for the candidate may not be too far down the road.
Today, you can pick up a share of Iovance for less than $3, making it accessible to many investors. The key is to hold onto the stock as lifileucel continues its path through studies -- if the pipeline hits, Iovance stock could go parabolic.
