Iovance Biotherapeutics Inc. (IOVA, Financial) might be even more attractive to rumored suitors after the San Francisco-area company’s cancer-fighting treatment showed promise in early testing.
Iovance’s highly anticipated tumor-infiltrating lymphocyte (TIL) was effective in treating a type of lung cancer in a study being conducted at the H. Lee Moffitt Cancer Center in Tampa, Florida, according to an article in FierceBiotech. Researchers reported on the study at the American Association for Cancer Research virtual annual meeting.
TILs are personalized cell treatments made from immune cells that have a natural ability to invade and kill cancer cells. Iovance’s technology involves taking T lymphocytes from patients, expanding them into the billions and then infusing them back into the body.
The company appears to be a good fit for both Gilead Sciences Inc. (GILD, Financial) and Takeda Pharmaceutical Co. (TAK, Financial), as both companies are interested in expanding their work in cancer. Gilead is reportedly looking at Iovance as well as Arcus Biosciences Inc. (RCUS), according to an article in the East Bay News. Also located in the Bay Area, Arcus trades at just over $26, nearly triple its year-to-date low.
Iovance hasn’t quite matched that performance, but has been on the upswing since mid-March, surging about $13 to just more than $32. The company has a market capitalization of just over $4 billion.
Iovance’s most advanced TIL is being tested against melanoma and cervical cancer; the company is expected to file for approval with the U.S. Food and Drug Administration sometime this year. The company is also testing the potential of TILs in in lung cancer and several other tumor types, including cervical cancer and head and neck tumors.
Iovance has established partnerships aimed at evaluating the potential of its technology in other cancers, including one with the University of Texas MD Anderson Cancer Center. Earlier this year, the company licensed technology from Cellectis (CLLS, Financial) aimed at increasing the potency of TIL.
BioSpace reported that Benjamin Burnett, an analyst with Stifel Financial Inc., called Iovance one of the more attractive acquisition targets among cell therapy companies because its concept has been proved in a study. Meanwhile, H.C. Wainwright analyst Joseph Pantginis said the Moffitt study renewed his confidence in Iovance, attaching a price target of $48, according to TipRanks.
All told, the 11 analysts offering 12-month forecasts for the company set a median target of $45, with a high estimate of $61 and a low estimate of $38. The stock is rated a Buy.
Disclosure: The author has a position in Takeda.
Read more here:
- Covid-19 Hurting Sales of Medtech Companies
- Axsome Shares Jump 25% on Alzheimer's Study Results
- Insurers Benefitting From Fewer Elective Procedures
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
