When Will Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) Become Profitable?

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 biotechnology 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. On 31 December 2023, the US$3.2b market-cap company posted a loss of US$444m for its most recent financial year. As path to profitability is the topic on Iovance Biotherapeutics' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Iovance Biotherapeutics

Iovance Biotherapeutics is bordering on breakeven, according to the 13 American Biotechs analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$6.5m in 2026. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 62%, which is extremely buoyant. 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, however, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.2% 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 too many aspects of Iovance Biotherapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Iovance Biotherapeutics' company page on Simply Wall St. We've also put together a list of key aspects you should further research:

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.