Iovance's (IOVA) Promising Cell Therapy Falters Triggering UBS Downgrades and Investor Lawsuit– Hagens Berman

Core Viewpoint - Iovance Biotherapeutics has faced significant challenges following a downgrade by UBS analysts, who reduced their rating from Buy to Neutral and cut the price target from $17 to $2 due to concerns over the commercial rollout of its cell therapy, Amtagvi [1][3]. Company Performance - Iovance's first-quarter sales of Amtagvi fell short of Wall Street forecasts, prompting management to lower its full-year outlook [2]. - The company reported a quarterly loss of $0.36 per share on revenue of $49 million, missing consensus estimates significantly [5]. - Following the earnings announcement, Iovance's shares plummeted 44%, closing at $1.75, marking a dramatic decline for a company previously viewed as a leader in cell therapy [6]. Operational Challenges - UBS analysts highlighted a slower-than-expected ramp-up in sales, attributed to operational challenges at smaller authorized treatment centers, including limited hospital infrastructure, staffing shortages, and reimbursement uncertainties [2]. - A higher-than-anticipated patient dropout rate raised concerns about patient selection and the need for improved physician education [2]. Legal Issues - Iovance is currently facing a securities class action lawsuit, alleging that the company and its executives misrepresented growth prospects while withholding critical information about operational readiness [4][7]. - The lawsuit focuses on statements made between May 2024 and May 2025, during which the company's optimistic messaging was reportedly inconsistent with internal operational realities [4]. Investor Sentiment - The downgrade by UBS reflects broader investor unease regarding Amtagvi's near-term trajectory and Iovance's ability to meet market demand [3]. - The stock has lost over 80% of its value in the past year, indicating a significant decline in investor confidence [3].