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with shares of Ivans Biotherapeutics (NASDAQ:IOVA) It has soared 175% in the past three months. wells fargo Analyst Yanan Zhu thinks the stock could still rise as much as 47%. In fact, on February 20th, the same analyst raised his price target for the company’s stock from $17 to $22. Yanan wasn’t the only one taking a bullish stance. goldman sachs Analyst Andrea Tan also significantly raised her price target, as did several others.
The reason for the flurry of price target hikes is undoubtedly the company’s recent victory with the Food and Drug Administration (FDA). On February 16, regulators granted early approval to Iovance’s lead candidate, a cell therapy for advanced melanoma called Amtagvi.
There are plenty of reasons to be bullish on Ivans.
Now, the biotech company will commercialize its first drug and generate sales for the first time. Analyst consensus estimates call for revenue of approximately $152 million in 2024. Gaining market share will definitely lead to higher stock prices.
Iovance is also investigating whether Amtagvi is useful in treating cervical cancer in late-stage clinical trials. If this trial is successful, companies will seek to expand the drug’s indications as soon as possible, and stock prices are expected to soar even further.
Iovance’s profitability remains an open question
Despite positive analyst ratings, there is still (at least) one risk to investing in Iovance. Because Amtagvy must be administered by licensed treatment centers and manufactured in specialized facilities, the drug’s rollout will involve significant overhead costs. It can take a long time for biotechnology to become profitable, and although it is unlikely, it is possible that you will not get more than you spend.
Should you invest $1,000 in Iovance Biotherapeutics right now?
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Wells Fargo is an advertising partner of The Motley Fool’s Ascent. Alex Karkidi has no position in any stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Ivans Biotherapeutics. The Motley Fool has a disclosure policy.
This biotech stock has 47% upside potential, according to a Wall Street analyst, reported in an article published by The Motley Fool.
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