Cancer Drug Maker Iovance Tumbles Toward Worst Week Since November, But Retail Feels Macro Selloff Overblown

Shares of Iovance Biotherapeutics have dropped over 17% so far this week, on course to mark their worst weekly decline since mid-November 2024. 

The selloff aligns with broader pressure on small-cap stocks within the Russell 2000 index, which is sliding into correction territory as fears over prolonged higher interest rates grip the market.

Macroeconomic concerns have intensified following robust U.S. jobs data, showing accelerating job growth and a lower unemployment rate of 4.1% in December. 

Small and mid-cap companies, like Iovance, are particularly sensitive to rate dynamics due to their reliance on borrowing compared to larger companies.

IOVA poll sentiment and message volume Jan 10 as of 2 pm ET | source: Stocktwits

Despite the macro-driven plunge, sentiment for Iovance has turned ‘extremely bullish’ on Stocktwits, with the stock becoming one of the platform’s top three trending tickers on Friday afternoon. 

Many retail investors see the selloff as overdone, drawing attention to the company’s promising medical pipeline and proprietary technology.

Some also speculated on the possibility of acquisition interest, citing Vertex Pharmaceuticals’ $4.9 billion premium buyout of Alpine Immune Sciences in 2024 as a precedent. 

In November, Iovance CEO Frederick Vogt highlighted the strong U.S. launch of Amtagvi for advanced melanoma and its growing demand through an expanding network of authorized treatment centers. "As a fully integrated company, Iovance is well positioned to remain the global leader in innovating, developing, and delivering current and future generations of TIL cell therapy for patients with cancer," he added.

Tumor-infiltrating lymphocyte (TIL) therapy is an innovative, patient-specific approach that uses T-lymphocytes derived from a patient’s tumor to combat cancer cells.

Retail optimism about TIL therapy remains high, with 67% of respondents in a Stocktwits poll calling it a “game-changer” in cancer treatment. 

The therapy this week gained visibility as MedStar Georgetown University Hospital became the first in the Washington, D.C., area to offer it for metastatic melanoma.

Iovance’s retail following has grown by 65% over the past year, even as the stock has shed more than 30% during the same period.

The company’s stock remains a battleground for investors, with short interest hovering at 19.5%. 

While macroeconomic challenges weigh on small caps, retail investors remain steadfast in their optimism, betting on TIL therapy’s transformative potential to reshape cancer treatment.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<