Iovance Biotherapeutics Stock Is Crashing. And Here's Why Things Could Get Even Worse This Year.

Core Viewpoint - Iovance Biotherapeutics has an approved drug, Amtagvi, for treating unresectable or metastatic melanoma, but its stock has significantly declined, raising concerns among investors about its future performance [1][2]. Group 1: Stock Performance and Market Sentiment - Iovance's stock has fallen approximately 57% since the beginning of the year as of April 22, indicating a significant sell-off [5]. - The percentage of short-sellers in relation to Iovance's float has been increasing, reflecting growing skepticism about the company's future success [3]. Group 2: Financial Health and Cash Flow - Iovance is experiencing poor cash flow, which may lead to further dilution for shareholders as the company has historically relied on issuing stock to fund operations [11]. - As of the end of 2024, Iovance had cash and short-term investments totaling $323.8 million, but ongoing high cash burn could deplete this cushion over time [10]. Group 3: Future Revenue Potential - Although Amtagvi has the potential to generate$1 billion in annual revenue, this is not expected until 2030, which raises concerns about the company's ability to achieve profitability in the near term [7][12]. - Iovance reported a net loss of $372.2 million last year, highlighting the financial challenges it faces [12].