Can This Beaten-Down Stock Bounce Back?
Last year, Iovance Biotherapeutics (NASDAQ: IOVA), a small-cap biotech, made a major breakthrough. The company earned approval for Amtagvi, which became the first medicine of its kind to receive regulatory approval for advanced melanoma.
However, Iovance's shares have been southbound ever since. And in this year alone, the stock has declined 69%. The company is hoping that clinical and regulatory progress can help it recover, but how likely is that to happen? Let's find out.
At first glance, Iovance appears fairly valued. Its market cap is $832 million, while it expects to bring in between $250 million and $300 million in revenue this year. Assuming it will generate $300 million over the next 12 months, and using the company's market cap of $832 million, we arrive at a forward price-to-sales ratio of around 2.8, which is reasonable for a small-cap, unprofitable biotech company.
Source Fool.com
