Investors are advised to exercise caution regarding the prospects of Intellia Therapeutics and Iovance Biotherapeutics, two biotech firms known for their innovative approaches. Both companies’ stocks have severely underperformed in the market this year, with Intellia’s shares down 19% and Iovance’s plummeting by 61%.
Despite this downturn, some analysts believe these stocks may be undervalued. Intellia’s projected average price target stands at $22.43, suggesting a potential increase of 139% from current levels. Similarly, Iovance’s price target of $8.35 indicates a possibility of a 191% rise. This raises the question: should investors consider purchasing shares of these companies ahead of 2026?
Intellia Therapeutics has recently faced significant challenges. A clinical hold imposed by U.S. regulatory authorities has impacted development for one of its candidates, nex-z, intended to treat transthyretin amyloidosis—a rare disease characterized by the accumulation of faulty proteins around vital organs. The clinical hold followed a participant’s death attributed to liver damage during ongoing phase 3 trials. While it remains uncertain whether nex-z was a contributing factor, the incident has led to a significant loss of market value for the company.
The immediate future for Intellia’s shares is unpredictable. If investigations reveal that nex-z was not implicated in the patient’s death, the stock could see a considerable rebound. Still, the long-term outlook presents a complex scenario. Even if the therapy is cleared, it must navigate various clinical and regulatory hurdles before generating revenue. Additionally, the high costs associated with gene editing treatments can complicate insurance coverage and patient access, adding further risk to Intellia’s investments in gene therapies like lonvo-z.
Iovance Biotherapeutics, on the other hand, has successfully launched a product named Amtagvi, which uses patients’ own cells to combat advanced melanoma. Despite its recent approval and growing sales—reportedly $176.7 million in revenue during the first nine months of 2025—challenges remain. Iovance has obtained approvals for Amtagvi in Canada and is pursuing regulatory approvals in Europe and Australia.
Although the company is working on expanding clinical trials and label expansions, the manufacturing process for Amtagvi is intricate and costly. The treatment requires the extraction of tumor tissue and specialized processing, which entails significant time and resources. The complexities of production hinder Iovance’s path to profitability, and as a result, the company’s stock price has continued to decline.
In considering the outlook for both Intellia and Iovance, the risks seem to outweigh potential rewards. While optimism remains regarding their future products, particularly if regulatory challenges are overcome, the immediate realities of their financial and operational hurdles suggest that significant increases in share value may be unrealistic in the near term. Hence, conservative investors may be better served by avoiding these stocks until clearer paths to profitability or clinical success emerge.
