Why Iovance Biotherapeutics climbed 40% in June
Actions of Iovance Biotherapeutics (NASDAQ: IOVA) gained 40.1% last month, according to figures from S&P Global Market Intelligence. The move, driven largely by an update on a key clinical trial, reverses a downward trend that has been underway since February.
Iovance Biotherapeutics may be one of the most promising names in immuno-oncology, but that hasn’t stopped the stock from losing 70% of its value between February high and low. of May.
A disturbing fourth-quarter update kicked off the sales stunt that ended (ironically enough) in May, when Iovance CEO Maria Fardis resigned after learning that her anti-candidate’s potential endorsement. -tumor Lifileucel had been delayed … again. In this particular case, however, the stock’s fall in response to the news also flushed out the last of the potential sellers, setting the stock up for a rebound.
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This much-needed rebound catalyst materialized on June 4, when the company released updated efficacy data for the besieged drug as a treatment for a targeted segment of melanoma patients. Specifically, for patients with advanced melanoma who are immune checkpoint inhibitor (ICI) naive, the combination of Lifileucel and pembrolizumab shows an overall response rate of 86% and a complete response rate of 43. %.
Put simply, delayed or not, the drug shows promise that the market seems to have lost sight of earlier in the year.
Biotechnology actions are hard enough to negotiate. Pre-recipe biotech names like Iovance Biotherapeutics are even more difficult to manage. Dramas like unexpected CEO exits and approval delays make these matters even more complicated.
Ultimately, however, the risk-adjusted value of a company’s pipeline – its entire pipeline – is reflected in the stock price. This is what is starting to happen now for Iovance stocks.
The stock has skyrocketed for most of 2020, but perhaps sensing something was wrong at the start of this year, traders have sold stocks for most of 2021 to date; Fardis’ resignation served as a capitulation. Now the real Lifileucel potential as a treatment for melanoma is coming back to the fore, along with the company’s eight other trials and five other therapies in development. The market likes what it sees.
Better yet, with stocks well below the February high (close to $ 53 per share) as well as below the consensus target of $ 40.31, there is plenty of room for the stock to continue moving higher. bullish directly from its current price of around $ 25 per share.
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