Yahoo Finance Market Sentiment Around Loss-Making Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
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$3.8b market-cap company posted a loss of US$444m for its most recent financial year. Many investors are wondering about the rate at which Iovance Biotherapeutics will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See 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. The company is therefore projected to breakeven around 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 62% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Iovance Biotherapeutics' growth isn’t the focus of this broad overview, though, bear in mind that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, 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 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 put together a list of essential factors you should further research:
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.
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.
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.
