Iovance Biotherapeutics, Inc. (IOVA): A Bull Case Theory

We came across a bullish thesis on Iovance Biotherapeutics, Inc. (IOVA) on r/biotech_stocks by u/DebtFit2132. In this article, we will summarize the bulls’ thesis on IOVA. Iovance Biotherapeutics, Inc. (IOVA)’s share was trading at $2.3500 as of January 13th.

Iovance Biotherapeutics is pursuing a high-risk Believer Strategy, opting to fund operations through ongoing equity dilution rather than selling the company at a distressed valuation near $2.50 per share. Management and influential insiders remain deeply confident in the long term potential of the Tumor Infiltrating Lymphocyte platform, particularly in lung cancer, which they believe can ultimately support a multibillion-dollar opportunity.

This conviction has driven a willingness to sell stock to maintain operations instead of accepting a takeout at current prices. As a result, the stock trades like a failed biotech while control rests with high conviction insiders such as Wayne Rothbaum, whose estimated cost basis is closer to $9.00, creating a sharp disconnect between market perception and internal expectations.

This valuation gap has effectively frozen standard acquisition activity. A typical pharmaceutical buyout premium of 50% to 100% would still leave long term holders and board members locking in significant losses, giving insiders both the incentive and authority to block any offer that does not reflect their higher internal valuation. Any viable transaction would likely require a creative structure such as contingent value rights to bridge the gap between today’s pessimistic share price and the board’s bullish view of future value.

Operationally, Iovance resembles a fixer upper with a rare and defensible asset in Amtagvi that competitors cannot easily replicate, but with meaningful economic flaws. Gross margins of roughly 24% to 43% are far below the 80% to 95% typical for commercial oncology drugs, making the standalone model cash intensive.

For a large acquirer, the thesis hinges on whether superior manufacturing scale can lift margins toward 70% or higher. If achievable, the acquisition could be transformative, but if not, Amtagvi risks becoming profitless revenue that drags on returns.

Previously we covered a bullish thesis on Bio-Techne Corporation (TECH) by scuttleblurb in May 2025, which highlighted the strength of its legacy protein franchises, expanding diagnostics platform, and long term growth optionality in cell and gene therapy. TECH’s stock price has appreciated by approximately 38.45% since our coverage. This is because improving organic growth and stabilization in instruments validated parts of the thesis. u/DebtFit2132 shares a similar view but emphasizes IOVA’s high risk high reward profile, acquisition potential, internal conviction as the core drivers at Iovance Biotherapeutics (IOVA).

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Disclosure: None.