With the business potentially at an important milestone, we thought we'd take a closer look at Iovance Biotherapeutics, Inc.'s (NASDAQ:IOVA) future prospects. Iovance Biotherapeutics, Inc., a commercial-stage biopharmaceutical company, develops and commercializes cell therapies using autologous tumor infiltrating lymphocyte for the treatment of metastatic melanoma and other solid tumor cancers in the United States. The US$1.2b market-cap company announced a latest loss of US$372m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Iovance Biotherapeutics' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Consensus from 10 of the American Biotechs analysts is that Iovance Biotherapeutics is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$140m in 2027. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 64%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Iovance Biotherapeutics' growth isn’t the focus of this broad overview, however, take into account that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

See our latest analysis for Iovance Biotherapeutics

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 0.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Iovance Biotherapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Iovance Biotherapeutics, take a look at Iovance Biotherapeutics' company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Valuation: What is Iovance Biotherapeutics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Iovance Biotherapeutics is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Iovance Biotherapeutics’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.