Iovance (IOVA) Q1 Loss Wider Than Expected, Revenues Nil
Iovance Biotherapeutics, Inc. IOVA incurred loss of 55 cents per share in first-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 53 cents as well as the year-ago quarter’s loss of 30 cents.
With no marketed products and revenue generating collaborations, the company did not record any revenues during the quarter.
Shares of Iovance were up almost 2.3% in after-market trading on May 5, following the earnings release. The stock has gained 18% so far this year compared with the industry’s increase of 3.7%.
Quarter in Detail
Research & development (R&D) expenses were $57 million, 84.5% higher than the year-ago quarter. The significant increase was due to rise in manufacturing and clinical activities and cost related to in-licensing of the IOV-3001 IL-2 analog from Novartis NVS. In January 2020, Iovance entered into a licensing agreement with Novartis and obtained rights to develop and commercialize IOV-3001.
General and administrative (G&A) expenses increased 52.7% to $13.9 million due to increase in related personnel and higher legal costs.
The company had $251.2 million in cash, cash equivalents, short-term investments and restricted cash as of Mar 31, 2020 compared with $312.5 million as of Dec 31, 2019.
Pipeline Update
Iovance is developing its lead pipeline candidates, lifileucel and LN-145, as monotherapies for treating metastatic melanoma and metastatic cervical cancer, respectively. Two separate pivotal studies are currently evaluating the candidates.
The phase II study — C-144-01 — is a multi-cohort study evaluating lifileucel in metastatic melanoma patients. In January 2020, the company completed enrollment in the fourth cohort of the study. Data from this cohort will support regulatory application seeking its approval. The company expects to file a biologics license application ("BLA") by the end of 2020.
The company’s another multi-cohort phase II study — C-145-04 — evaluating LN-145 in recurrent, metastatic or persistent cervical cancer in multiple settings is also progressing well. The company plans to complete enrollment in registration-enabling first cohort of the study by mid-2020 and submit a BLA by 2020-end.
Iovance Biotherapeutics, Inc. Price, Consensus and EPS Surprise
Iovance Biotherapeutics, Inc. price-consensus-eps-surprise-chart | Iovance Biotherapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Iovance currently has a Zacks Rank #3 (Hold).
A couple of stocks to consider from the biotech sector include Amarin Corporation PLC AMRN and Immunomedics, Inc. IMMU, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amarin’s earnings per share estimates have moved up from 12 cents to 14 cents for 2020 and from 76 cents to 81 cents for 2021 in the past 30 days. The company’s average four-quarter positive earnings surprise is 200%.
Immunomedics’ loss per share estimates have narrowed from $1.66 to $1.60 for 2020 and from 99 cents to 87 cents for 2021 in the past 30 days. The company’s stock has surged 49% so far this year.
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