IOVA Q2 Earnings Beat, Stock Jumps 43% on Strong Amtagvi Uptake

IOVA's Product Sales Drive Revenue Beat

Iovance currently has two marketed drugs in its portfolio — the IL-2 product Proleukin and the TIL therapy Amtagvi. While Proleukin is approved to treat metastatic renal cell carcinoma and metastatic melanoma in adults, Amtagvi is approved for the advanced melanoma indication.

The company recorded $90.7 million from Amtagvi sales during the second quarter, up 68% year over year and 51% sequentially.  The figure surpassed both the Zacks Consensus Estimate and our model estimate of $79 million. Amtagvi also outperformed the company's forecast of $79-$81 million.

Proleukin sales rose 46% to $8.6 million, benefitting from its use alongside Amtagvi. The reported sales marginally beat the Zacks Consensus Estimate and our model estimate of $8.5 million. Management attributed the sequential decline from roughly $11 million in the previous quarter to the timing of wholesaler inventory stocking.

Shares of Iovance jumped 43% yesterday to a 52-week high following the results, likely reflecting an encouraging investor response to Amtagvi's commercial momentum. Though the company did not immediately raise its revenue outlook, management said it is reviewing the guidance and will provide an update during the third quarter amid strong demand trends.

Year to date, the stock has skyrocketed 127.5% compared with the industry’s 3.5% growth.

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IOVA Expands Margin While Controlling Costs

Gross margin improved to 56% from 41% in the first quarter of 2026, marking a quarterly high. Higher Amtagvi volume, continued cost optimization and efficiencies from fully in-house manufacturing supported the improvement.

Research and development expenses declined 24% year over year to $58.9 million. Selling, general and administrative expenses increased 5% to $39.3 million.

Iovance ended the second quarter with approximately $304 million in cash and cash equivalents compared with $319 million in the previous quarter. Management expects the current cash position to fund operations into the second half of 2028, compared with its previous expectation of funding operations into 2028.

The longer runway comes as Iovance continues to improve manufacturing efficiencies and control operating expenses while advancing its commercial launch and pipeline.

IOVA Reviews Full-Year Revenue Outlook

Strong second-quarter sales prompted management to review its previously issued 2026 total revenue guidance of $350-$370 million. Iovance plans to provide an updated forecast during the third quarter after assessing current demand trends.

Management expects Amtagvi's demand to increase in both the third and fourth quarters. Proleukin sales are also expected to grow alongside Amtagvi, with the product anticipated to represent approximately 16% of total revenues on a steady-state basis during the remainder of the year.

Updates on IOVA’s Pipeline & Other News

Amtagvi recently secured approval in Australia for the melanoma indication. In the U.K., a regulatory filing for the therapy was resubmitted last month and is undergoing expedited review for potential approval before this year’s end. While a potential approval for Amtagvi in Switzerland is expected in the first half of 2027, Iovance is in discussions with the EMA to resubmit a regulatory filing for the therapy next year.

Iovance continues to advance its development programs for Amtagvi. It is evaluating the drug in combination with Merck’s MRK Keytruda in the phase III TILVANCE-301 study as a potential treatment for frontline advanced melanoma. This study will serve as a confirmatory study seeking full approval for Amtagvi in the melanoma indication.

Beyond melanoma, Iovance is developing Amtagvi for other cancer indications. Alongside the earnings results, the company reported that enrolment is nearly complete in the pivotal cohorts of the phase II IOV-LUN-202 study evaluating the therapy for previously treated metastatic non-squamous non-small cell lung cancer (NSCLC). An update is expected in the fourth quarter of 2026. The company intends to submit a regulatory filing seeking label expansion in 2027.

Amtagvi is being evaluated in separate mid-stage studies for endometrial cancer and soft tissue sarcomas.

IOVA’s Zacks Rank

Iovance currently carries a Zacks Rank #2 (Buy).

Other Key Picks Among Biotech Stocks

Some other top-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, earnings per share (EPS) estimates for Harmony Biosciences have risen from $3.20 to $3.33 for 2026. Over the same period, EPS estimates have increased from $3.64 to $3.87 for 2027. HRMY shares have risen about 4% year to date.

Harmony Biosciences missed earnings in three of the trailing four quarters while meeting on one occasion, delivering an average negative surprise of 13.97%.

Over the past 60 days, estimates for Liquidia’s 2026 EPS have increased to $3.02 from $2.97. Over the same period, EPS estimates for 2027 have risen from $4.81 to $5.31. LQDA shares have skyrocketed 159% so far this year.

Liquidia’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 54.40%.

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This article originally published on Zacks Investment Research (zacks.com).

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