After announcing a $150 million stock offering, Iovance Biotherapeutics (NASDAQ:IOVA) stock experienced a decline of nearly 10% in yesterday’s extended trading session and another 11% at the time of writing. This decrease offset some of yesterday’s surge of 21.4% in the IOVA stock price, following the release of positive updates on its tumor-infiltrating lymphocyte (TIL) therapy for advanced non-small cell lung cancer.
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IOVA is a biotechnology company that focuses on developing novel polyclonal TIL therapies for patients with cancer.
The offering is expected to close on July 13. Further, Goldman Sachs & Co. LLC and Jefferies LLC, the joint underwriters of this offering, will be granted a 30-day option to purchase up to an additional 3 million shares.
The proceeds from the offering are expected to be used to support the commercial launch of lifileucel, the company’s lead product, as well as prepare its manufacturing facility in Philadelphia. Furthermore, the funds will be allocated towards ongoing clinical programs, the development of the company’s pipeline candidates, and other general corporate purposes.
What is the Future of IOVA Stock?
Iovance is making considerable progress in the development of treatments for non-small cell lung cancer. The positive updates on its TIL therapy have generated optimism among analysts.
It is worth mentioning that following yesterday’s update that the FDA approved the design of the IOV-LUN-202 trial, seven analysts reaffirmed their Buy ratings on the stock.
Also, these developments position the company well in the evolving landscape of cancer therapeutics. According to a Fortune Business Insights report, the global non-small cell lung cancer therapeutics market is expected to hit $43.71 billion by the end of 2026, reflecting a CAGR of 13.4% over a six-year period. This bodes well for Iovance’s future prospects.
Is IOVA Stock a Good Buy?
Overall, the Strong Buy consensus rating for Iovance is based on 11 Buys and one Hold. Meanwhile, IOVA stock has an average price target of $23.50, which implies an upside potential of 167.35% from the current level. The stock is up about 44% so far in 2023.
