Can This Beaten-Down Stock Bounce Back?

Group 1 - Iovance Biotherapeutics achieved a significant milestone with the approval of Amtagvi, the first medicine of its kind for advanced melanoma, but its stock has declined 69% this year [1] - The company's market cap is $832 million, with expected revenues between $250 million and $300 million for the year, resulting in a forward price-to-sales ratio of approximately 2.8, which is reasonable for a small-cap, unprofitable biotech [2] - Amtagvi has recently gained approval in Canada and has the potential for growth in the U.S. market, where there are 8,000 annual melanoma deaths, and the therapy has treated over 100 patients per quarter [3] Group 2 - The administration of Amtagvi is complex, as it is made from patients' own tumor-infiltrating lymphocytes, with a manufacturing process that takes 34 days, raising concerns about the company's profitability [5] - Earlier this year, Iovance revised its guidance due to an error in estimating the activation timing of authorized treatment centers, indicating potential ongoing challenges for the company [6] - Despite decent sales growth for Amtagvi, the company faces significant challenges that may hinder its ability to achieve profitability, making its prospects appear risky [7]