We feel now is a pretty good time to analyse Iovance Biotherapeutics, Inc.'s (NASDAQ:IOVA) business as it appears the company may be on the cusp of a considerable accomplishment. Iovance Biotherapeutics, Inc., a commercial-stage biotechnology company, develops and commercializes cell therapies using autologous tumor infiltrating lymphocyte for the treatment of metastatic melanoma and other solid tumor cancers in the United States. With the latest financial year loss of US$444m and a trailing-twelve-month loss of US$450m, the US$2.9b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Iovance Biotherapeutics will turn a profit, with the big question being "when will the company breakeven?" We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Consensus from 12 of the American Biotechs analysts is that Iovance Biotherapeutics is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$11m in 2026. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 66% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Iovance Biotherapeutics' growth isn't the focus of this broad overview, though, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we'd like to point out is that The company has managed its capital prudently, with debt making up 0.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Iovance Biotherapeutics, so if you are interested in understanding the company at a deeper level, take a look at Iovance Biotherapeutics' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

1. Valuation: What is Iovance Biotherapeutics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Iovance Biotherapeutics is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Iovance Biotherapeutics's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.