Loss-Making Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) Expected To Breakeven In The Medium-Term

Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Iovance Biotherapeutics, Inc., a commercial-stage biopharmaceutical company, develops and commercializes cell therapies using autologous tumor infiltrating lymphocyte for the treatment of metastatic melanoma and other solid tumor cancers in the United States. The US$1.2b market-cap company announced a latest loss of US$372m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Iovance Biotherapeutics' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Iovance Biotherapeutics is bordering on breakeven, according to the 10 American Biotechs analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$140m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 64% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Iovance Biotherapeutics' growth isn’t the focus of this broad overview, though, take into account that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Iovance Biotherapeutics

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Iovance Biotherapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Iovance Biotherapeutics, take a look at Iovance Biotherapeutics' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

1. Valuation: What is Iovance Biotherapeutics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Iovance Biotherapeutics is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Iovance Biotherapeutics’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.