This Is the Biggest Risk With Iovance Biotherapeutics Stock

Core Viewpoint - Iovance Biotherapeutics has received accelerated approval for its cell therapy treatment, Amtagvi, but investors should be cautious about potential dilution and the company's long path to profitability [1][2][9]. Financial Performance - Iovance generated $31.1 million in sales in its most recent quarter, but reported a net loss of $97.1 million, slightly better than the previous year's loss of $106.5 million [4]. - The company has used $220.7 million in cash for operating activities over the past six months, ending with $235.1 million in cash and $183.9 million in short-term investments [5]. Cash Flow and Dilution Risks - The company faces high dilution risk as it may need to raise funds through equity markets due to insufficient cash flow for operations and expansion [6][8]. - Iovance has a clean balance sheet with total liabilities of $195.8 million against total assets of $964.3 million, indicating a preference for share offerings to raise capital [7]. Market Expansion and Future Outlook - Iovance plans to launch Amtagvi in new markets, including the U.K., Canada, and Australia, which will require additional cash [6][9]. - While the company has growth prospects, the need for cash could lead to significant stock offerings, impacting current investors [9][10].