Shares of Iovance Biotherapeutics, Inc. (IOVA) plummeted by a staggering 27.85% in pre-market trading on Friday, following the release of the biotechnology company's disappointing fourth-quarter 2024 financial results and weaker-than-expected guidance for 2025.
For the fourth quarter, Iovance reported a wider-than-expected net loss of $78.6 million, or $0.26 per share, despite revenue growth driven by product sales of Amtagvi and Proleukin. However, the company's expenses remained high, with research and development costs reaching $72.2 million and selling, general, and administrative expenses totaling $42.5 million.
The primary catalyst for the stock's plummet was Iovance's guidance for the full year 2025. While the company reaffirmed its total product revenue guidance within the range of $450 to $475 million, it also announced that cash burn is expected to be under $300 million, including the completion of its manufacturing expansion. This cash burn outlook, coupled with higher-than-expected expenses in the fourth quarter, raised concerns among investors about the company's profitability and cash position, triggering the significant sell-off.
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