Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) is facing significant commercial and legal challenges following the troubled launch of its cell therapy Amtagvi, prompting a dramatic analyst downgrade and securities litigation. The San Carlos, California-based biotech company has seen its stock price collapse as operational hurdles mount.
Analyst Downgrade Reflects Commercial Struggles
On May 16, 2025, UBS analysts slashed their rating on Iovance shares from Buy to Neutral and issued a stark price target cut from $17 to just $2. The downgrade cited mounting concerns over Amtagvi's commercial rollout and the company's ability to meet market expectations.
UBS analysts reportedly wrote that "with a lack of near-term visibility on Amtagvi's uptake, we are moving to the sidelines," reflecting broader investor unease over the therapy's near-term trajectory and Iovance's ability to capitalize on demand.
Operational Challenges Hamper Launch
Iovance's first-quarter sales of Amtagvi fell well short of Wall Street forecasts, forcing management to lower its full-year outlook. UBS analysts pointed to a slower-than-expected ramp-up, hampered by operational challenges at smaller authorized treatment centers struggling with limited hospital infrastructure, staffing shortages, and reimbursement uncertainties.
The company reported a higher-than-anticipated patient dropout rate, raising questions about patient selection and the need for greater physician education. Production issues further complicated the rollout when Chief Operating Officer Igor Bilinsky revealed that annual maintenance at the company's flagship cell therapy center had halved production capacity for an entire month, creating a supply bottleneck.
Financial Performance Disappoints
The situation came to a head on May 8, when Iovance disclosed a quarterly loss of $0.36 per share on revenue of $49 million, missing consensus estimates by a wide margin. Shares of Iovance plummeted 44% the following day, closing at $1.75. The stock, now trading near its 52-week low, has lost more than 80% of its value over the past year.
Securities Class Action Filed
Beyond analyst concerns, Iovance and its executives are grappling with a securities class action filed in the Northern District of California. The suit alleges that defendants painted an overly optimistic picture of Iovance's growth prospects while withholding key information about readiness to meet commercial demand.
The complaint centers on statements made between May 2024 and May 2025, a period during which the company's upbeat messaging was allegedly at odds with internal operational realities.
Legal Investigation Underway
Prominent shareholder rights firm Hagens Berman is examining whether Iovance and its executives violated federal securities laws by issuing overly optimistic statements about operational readiness and growth trajectory.
Reed Kathrein, a partner at Hagens Berman leading the inquiry, explained the basis for the firm's review: "Investors rely on management to present a candid view of both the opportunities and the obstacles. When a company's messaging diverges from its operational reality, it's not just a matter of missed expectations—it's a question of whether investors were given a fair shot at the truth."
The class period runs from May 9, 2024, to May 8, 2025, with a lead plaintiff deadline of July 14, 2025. The investigation represents a stark reversal for a company once seen as a frontrunner in the cell therapy space.