What's Wrong With Iovance Biotherapeutics Stock?

Core Viewpoint - Iovance Biotherapeutics has seen a significant decline in its stock price despite initial excitement over the FDA approval of its treatment, Amtagvi, for melanoma, raising questions about its financial health and future prospects [1][2]. Financial Performance - Iovance's stock peaked at over $18 in February but has since dropped by 32$6 [2]. - The company reported $58.6 million in sales for the most recent quarter, falling short of its$147.6 million in expenses for the same period [3]. - Projected revenue for 2025 is estimated to be between $450 million and$475 million, which may still not cover the company's expenses [4]. Cash Flow and Expenses - Over the past three quarters, Iovance has burned through $279.7 million in cash from operations, with$397.5 million in cash and equivalents reported at the end of September [5]. - The company is facing increasing costs as it commercializes Amtagvi, which may lead to further cash burn [4]. Share Dilution Concerns - Iovance has been increasing its share count significantly, raising concerns about potential stock offerings to secure cash for operations [6]. - An increase in share supply could lead to a declining stock price unless investor sentiment improves [7]. Long-term Potential - Despite current losses and cash burn, Iovance is in the early growth stages, with potential revenue from Amtagvi projected to reach $846 million by 2029 [8]. - With a market capitalization of less than$2 billion, Iovance may represent an undervalued investment opportunity, albeit with associated risks [9]. - Investors willing to take on risk may find Iovance appealing due to its modest valuation and growth potential [10].