Iovance Biotherapeutics Inc. (NASDAQ:IOVA) rocketed to a fresh 52-week high on Thursday, clocking as much as 47 percent gains, after management reported a 66 percent jump in revenues that signaled the strengthening demand for its treatment for advanced melanoma.
In intra-day trading, the stock surged to its highest price of $6.39 before trimming gains to finish the session up by 43.09 percent at $6.21 apiece.
In a statement, the biopharmaceutical firm said that it raked in $99.3 million in revenues for the second quarter of the year, a marked jump from the $59.9 million in the same period last year, driven by the strong demand for Amtagvi.
Of the total revenues, Amtagvi accounted for around $91 million, a 68 percent jump year-on-year, and a 52 percent improvement quarter-on-quarter.
Proleukin, on the other hand, was owed to around $9 million in revenues, and is expected to grow in the remainder of the year.
The strong revenues helped Iovance Biotherapeutics Inc. (NASDAQ:IOVA) slash its second quarter net loss by 57.6 percent to $47.3 million from $111.6 million in the same period last year.
Photo by Tima Miroshnichenko on Pexels
Global Expansion
The rally can be further attributed to continued optimism for Amtagvi’s growth prospects, having secured its third marketing approval to sell the treatment to Australia, following the US and Canada’s nod.
Iovance Biotherapeutics Inc. (NASDAQ:IOVA) also posted an optimistic outlook about Amtagvi’s business prospects in Australia, with the country having the highest rate of melanoma globally, with an estimated 17,000 new cases diagnosed each year and more than 1,500 deaths annually.
“We are in the process of authorizing our first Australian treatment center as we advance our expansion strategy for Amtagvi in additional markets with a high prevalence of advanced melanoma,” he added.
The Therapeutic Goods Administration of Australia granted approval based on safety and efficacy results from the global, multicenter C-144-01 trial investigating Amtagvi in patients with advanced melanoma previously treated with anti-PD-1 therapy and targeted therapy, if applicable.
Strong Hedge Fund Conviction
Institutional investors appeared to be bullish about Iovance Biotherapeutics Inc.’s (NASDAQ:IOVA) growth prospects for the long term.
Data from Insider Monkey showed that 33 hedge funds held positions in the company as of the first quarter of the year, unchanged from the quarter previously. However, their combined holdings sharply increased by 46 percent to $323.9 million from $221.4 million quarter-on-quarter, signaling that professional investors viewed the stock as an increasingly attractive opportunity.
Looking ahead, investors are expected to watch for further developments on its global expansion, particularly for the United Kingdom, which could significantly broaden its commercial reach and support long-term revenue growth.
Last month, the company resubmitted its marketing authorization application for Amtagvi with the UK and is now under expedited review by the Medicines and Healthcare Products Regulatory Agency.
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