On Wednesday, Piper Sandler reiterated its Overweight rating on Iovance Biotherapeutics (NASDAQ:IOVA) stock with a steady $19.00 price target for the shares.
The firm's analysis is looking forward to the upcoming update at the American Society of Clinical Oncology (ASCO) concerning Iovance's Phase II trial, IOV-COM-202. This trial is assessing the combination of lifileucel and pembrolizumab in treating frontline melanoma.
The forthcoming data presentation is expected to shed light on the trial's response rates, which have been outpacing those of single-agent anti-PD-1 therapies.
Piper Sandler's anticipation hinges on the potential insights the update will bring, particularly regarding the durability of the treatment's efficacy, with a focus on progression-free survival (PFS).
The firm has conducted a comprehensive review of efficacy data from previous PD-1 studies, establishing benchmarks for PFS rates.
According to historical data, PFS rates for single-agent PD-1 therapies stand at approximately 45-50% at six months and 35-40% at twelve months.
The analyst from Piper Sandler suggests that an absolute improvement of 10-15% over these benchmarks would be viewed favorably for the IOV-COM-202 trial.
This positive outlook is supported by preliminary duration of response (DOR) data, which indicates that such an improvement in PFS rates is within reach.
The detailed results from the study, once presented, are expected to provide a clearer picture of the treatment's potential and its standing in comparison to existing therapies.
Investors and stakeholders in Iovance Biotherapeutics are poised to closely monitor the ASCO presentation for these critical updates.
The company's stock performance and future prospects could be influenced by the trial outcomes and the subsequent reception by the medical community.
InvestingPro Insights
With Iovance Biotherapeutics (NASDAQ:IOVA) in the spotlight due to its anticipated clinical trial update, investors may find additional context in the company's financial health and market performance. An InvestingPro Tip highlights that Iovance holds more cash than debt on its balance sheet, which can provide financial flexibility in advancing its clinical programs. Additionally, analysts are expecting sales growth this year, which could reflect optimism surrounding the company's pipeline prospects.
From a market perspective, the recent metrics show that Iovance has a market capitalization of $2.64 billion. Despite challenges such as negative gross profit margins and substantial operating losses in the last twelve months, the company's stock has experienced a significant turnaround with a 70.77% price total return over the last six months. Moreover, with an InvestingPro Fair Value estimate of $12.29, there appears to be a potential upside when compared to the previous close price of $9.7.
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