IOVA Stock Drops 6% on $350M Common Stock Offering

Iovance Biotherapeutics IOVA recently announced that it is floating a secondary issue of its common stock to raise gross proceeds worth $350 million.

The pricing of this issue per share is yet to be announced.

Why Did IOVA Stock Fall?

Iovance’s shares fell 6% yesterday. While the pricing for the issue is yet to be announced, the company will follow an “At the market” offering. This likely indicates that the new issue will be priced around the current market price. Iovance’s stock closed at $2.53 apiece on Monday, which puts the company’s overall market capitalization value at $915.5 million. The secondary stock offering is more than likely to dilute the company’s existing shareholder base, which did not sit well with investors.

Year to date, shares of Iovance have plunged 66% against the industry’s 4% growth.

IOVA’s Plans for the Proceeds

Iovance plans to use the net proceeds from this new issue, along with its existing cash balance, to expand the commercial reach of its melanoma therapy, Amtagvi, and support the clinical development of its pipeline candidates. The company will also use the proceeds for general corporate purposes.

IOVA currently has two marketed drugs in its portfolio, the IL-2 product Proleukin and the TIL therapy Amtagvi. While Proleukin is approved to treat metastatic renal cell carcinoma and metastatic melanoma in adults, Amtagvi is approved under the accelerated pathway for the advanced melanoma indication.

The company is evaluating Amtagvi in combination with Merck’s MRK PD-L1 inhibitor Keytruda, in the phase III TILVANCE-301 study as a potential treatment for frontline advanced melanoma. This study will also serve as a confirmatory study for the drug in the approved indication. Keytruda is Merck’s blockbuster oncology medication, which is approved for more than 40 indications.

Iovance remains on track to share an update from the phase II IOV-LUN-202 study, evaluating Amtagvi in post-anti-PD-1 non-small cell lung cancer (NSCLC), before this year’s end. If results from the study are positive, Iovance expects to secure a label expansion for the drug from the FDA in the given indication in 2027. Amtagvi is also being evaluated in separate mid-stage studies for cervical and endometrial cancer indications. Initial results from the endometrial cancer study are expected by this year’s end.

The company also expects to report data from the efficacy portion of the phase II IOV-GM1-201 study, evaluating IOV-4001 in previously treated advanced melanoma, later this year.

IOVA’s Zacks Rank

Iovance carries a Zacks Rank #3 (Hold) at present.

Iovance Biotherapeutics, Inc. Price

 

Iovance Biotherapeutics, Inc. price | Iovance Biotherapeutics, Inc. Quote

Key Picks Among Biotech Stocks

Some better-ranked stocks from the sector are ANI Pharmaceuticals ANIP and CorMedix CRMD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ 2025 earnings per share (EPS) have risen from $6.53 to $7.25. EPS estimates for 2026 have increased from $7.07 to $7.74 during the same period. Year to date, shares of ANIP have surged over 63%.

ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 22.66%.

Estimates for CorMedix’s 2025 EPS have increased from 96 cents to $1.22 over the past 60 days, while the same for 2026 has increased from $1.65 to $2.12. CRMD shares have soared nearly 70% year to date.

CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.85%.

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This article originally published on Zacks Investment Research (zacks.com).

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