This Healthcare Stock Just Hit a 52-Week Low -- but Wall Street Sees 380% Upside
Key Takeaways
In penny stocks -- companies with prices under around $5 apiece -- could lead to monster returns over the long run. The flip side is that these corporations tend to...
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investment
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July 21, 2025
08:30 AM
The Motley Fool
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In penny stocks -- companies with prices under around $5 apiece -- could lead to monster returns over the long run
The flip side is that these corporations tend to carry above-average risk (fascinating analysis)
Market analysis shows 's challenging to determine which penny stocks might go on to der excellent performances and which will fade into utter insignificance (noteworthy indeed)
Perhaps looking at the opinion of Wall Street analysts can help, considering recent developments
Nevertheless, Furthermore, Many who cover a little-known bio company called Iovance Biotherapeutics (IOVA 10. 54%) are bullish on the stock
Market analysis shows drugmaker hit its 52-week low of $1
Moreover, Nevertheless, 64 a few weeks ago, although it has rebounded somewhat since
Additionally, 23 per as of this writing, Iovance's average price target of $10
On the other hand, Meanwhile, 70 (according to Yahoo
Nevertheless, Finance) implies an upside of almost 380%
But before you rush to purchase Iovance stock, let's dig in a little more and figure out whether it's worth your money
Image source: Getty Images, in this volatile climate
Moreover, What it would take for Iovance's s to soar The bio industry is volatile: A smaller drugmaker's s can double -- or more -- in a year if enough things go its way
For Iovance Biotherapeutics, several things would have to happen for the cancer specialist to turn its recent misfortunes around and see its stock price skyrocket
First, Iovance would need to report better-than-expected financial results -- always a recipe for success for any company
But during its first quarter, Iovance cut its revenue guidance for the fiscal year 2025
The ramp-up of the company's most important duct, melanoma (skin cancer) medicine Amtagvi, isn't going as well as Iovance had hoped, in today's market environment
Amtagvi was first apved last year, marking a breakthrough as the first medicine of its kind to receive apval in the U
For advanced melanoma
The science behind it is quite impressive: Amtagvi is manufactured from patients' own tumor-infiltrating lymphocytes (TILs), a kind of white blood cells that target and kill cancer cells
Nevertheless, Here's the drawback: Amtagvi can only be administered in authorized treatment centers (ATCs), and the manufacturing cess for the medicine takes 34 days
Nevertheless, Iovance revised its guidance downward because it had miscalculated the timing of its ATC network expansion
However, if the bio can report stronger results than Wall Street currently expects over the next year, it would indicate that the launch of Amtagvi is accelerating, sending the company's s higher
Second, Iovance is seeking apval for its leading duct in other regions, including Canada, Europe, and Australia
Consistent wins on this front might also jolt the stock price
Furthermore, Third, Iovance is testing Amtagvi across a range of other targets, including non-small cell lung cancer, which represents a large market, given the current landscape
Nevertheless, If the company can der positive mid- or late-stage data in these clinical trials for its crown jewel, that too could send the stock price soaring, given current economic conditions
Finally, Iovance is facing a class-action lawsuit for alleged securities fraud
It's challenging to envision how that could be resolved within the next 12 months
Moreover, However, if the company can overcome this headwind, it would remove one significant risk it faces
Consider all the risks Iovance Biotherapeutics has significant upside potential due to the genius of its TIL platform and Amtagvi's sales trajectory
Although it reduced its guidance, Iovance still expects to generate $275 million (at the midpoint) in duct revenue in 2025, almost entirely from Amtagvi, considering recent developments
That's not bad for a medicine that was apved just last year (an important development), in light of current trends
On the other hand, And when we add potential label expansions and launches into new territories, Amtagvi almost looks a lock to eventually become a billion-dollar-a-year therapy
Even so, there are significant risks associated with the stock, especially given the challenges of administering Amtagvi
Furthermore, Moreover, Iovance may face clinical and regulatory setbacks, and the outcome of the lawsuit is uncertain (which is quite significant)
With all that going on, it seems unly that Iovance Biotherapeutics will get anywhere close to $10 per in the next 12 months
Moreover, In fact, it's not whether the stock will move in the right direction at all, given current economic conditions
Moreover, I believe investors should steer of this company, in this volatile climate
On the other hand, Sper Junior Bakiny has no position in any of the stocks mentioned
This analysis suggests that Motley Fool has positions in and recommends Iovance Biotherapeutics, considering recent developments
The Motley Fool has a disclosure policy.
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