Iovance (IOVA) stock price could jump by 30% after earnings

Iovance Biotherapeutics (NASDAQ: IOVA) stock price has rebounded sharply in the past few days as traders wait for the upcoming financial results. It rose by almost 6% on Friday and by over 3% on Monday. It has jumped to $14, almost 28% above its lowest point in April.

Iovance Biotherapeutics has been one of the best-performing companies on Wall Street as it soared by over 338% from its lowest point in November last year.

This rebound happened after the company achieved major milestones in its trials for its cancer drug. 

In March, the FDA lifted its partial clinical hold placed on its IOV-LUN-202 drug for treating lung cancer. The agency had placed a partial hold in its study in November last year after a patient in its trial died.

The other important news was that the company received accelerated approval for AMTAGVI, a drug that will be used to treat advanced melanoma drug. It was the first and only one-time, T therapy drug to receive an approval for a solid tumor cancer.

This drug is expected to generate millions of dollars because of the prevalence of melanoma disease. It is estimated that over 8,000 people die of the disease in the US each year and the number is significantly higher than that in other countries. 

In its fourth-quarter report, the company said that it was considering expanding its marketing strategy to countries like Australia, Canada, the UK, and in the European Union.

Therefore, the company’s results scheduled for Thursday will be important in that they will provide more information about its performance. The average revenue estimate among analysts is that its revenue rose to $2.07 million in Q1. Its loss per share is expected to come in at 42 cents.

Still, analysts expect that its revenue growth will accelerate this year. They see Q2 revenue coming in at $30.4 million while its 2024 and 2025 will come in at $167 million and $418 million, respectively.

The other thing to watch will be its cash burn and potential for cash burn. As other biotech companies, Iovance has been burning millions of dollars of cash each quarter. Its net loss came in at over $500 million in the past five quarters. 

Iovance ended the fourth quarter with over $346 million in cash and cash equivalents. It then raised $211 million in cash and equivalents. The firm estimates that this cash balance will last it until Q2 of 2025. 

The hope for investors is that the company will likely be acquired by one of the biggest cancer companies in the world like Roche, Celgene, Bristol-Myers Squibb, and Johnson & Johnson.

IOVA chart by TradingView

My last Iovance Biotherapeutics stock forecast was accurate. In February, I wrote that the stock would skyrocket ahead of its earnings. It then surged by over 142% after the earnings as I predicted. It then formed a golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other.

Recently, the stock has pulled back from $18.32 to the current $13.6. It is now bouncing back as buyers target the key resistance at $18.32. This is happening as the stock attempts to form a double-top pattern. 

Therefore, the outlook for the stock is bullish, with the next point to watch being at $18.32, which is about 32% above the current level.

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