Iovance Biotherapeutics Inc (NASDAQ:IOVA) shares are surging Thursday after the cancer therapy company beat second-quarter expectations on both the top and bottom lines. Here’s what you should know.
- Iovance Biotherapeutics shares are testing new highs. What’s driving IOVA to record levels?
Record Revenue and an Earnings Beat Set the Tone
Iovance reported a loss of 11 cents per share for the second quarter, beating estimates for a loss of 14 cents per share, while total revenue of $99.3 million surpassed the $87.8 million the Street had been modeling and represented a 66% increase from the $60 million produced in the comparable quarter a year earlier.
U.S. Amtagvi revenue reached approximately $91 million, while global Proleukin contributed approximately $9 million and is expected to grow through the remainder of the year. Gross margin reached 56%, reflecting the combined benefit of higher Amtagvi volumes, continued cost discipline and ongoing improvements in the company’s centralized manufacturing process.
Amtagvi is a tumor-infiltrating lymphocyte therapy, a treatment that extracts a patient’s own immune cells from their tumor, expands them in a lab and reinfuses them to fight cancer, and is the only such therapy to receive FDA approval with a scaled centralized commercial manufacturing process.
Interim CEO Frederick Vogt said the quarter’s performance and the strength of current demand trends have prompted the company to review its full-year revenue guidance of $350 million to $370 million, with a formal update expected when third-quarter results are released.
The existing guidance range was reaffirmed against the $362 million analyst consensus, but the prospect of an upward revision is being read by investors as a sign the business is tracking ahead of plan.
Amtagvi Demand is Accelerating Across Every Metric
A new marketing initiative and a larger sales organization have combined to push Amtagvi demand to record levels, with unaided physician awareness of the product growing nearly threefold over the past 12 months. The network of authorized treatment centers has expanded to more than 95 locations spanning the United States, Canada and Australia, and the company expects that figure to reach at least 110 active centers by the end of 2026.
Real-world evidence generated by Iovance and its treatment center partners is showing objective response rates of 50% or higher, data that is supporting broader physician adoption and encouraging referrals at earlier stages of treatment.
Internationally, Australia’s Therapeutic Goods Administration granted marketing authorization for Amtagvi, becoming the third regulatory body globally to approve the therapy. A resubmission in the United Kingdom is currently undergoing expedited review by the MHRA with a potential approval expected later in 2026, while a decision in Switzerland is anticipated in the first half of 2027.
IOVA Shares Are Flying
IOVA Price Action: Iovance shares were up 39.17% at $6.03 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro.
Image: Marko Aliaksandr/Shutterstock