December 29, 2025
Finance

Wall Street Sees Significant Upside Potential for Two Troubled Biotech Stocks in 2026

Intellia Therapeutics and Iovance Biotherapeutics face challenges but hold promise for strong rebounds according to analyst targets

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Summary

Two biotechnology companies, Intellia Therapeutics and Iovance Biotherapeutics, have experienced substantial stock declines in 2025 due to clinical and operational hurdles. Despite these setbacks, Wall Street analysts forecast considerable upside potential by 2026, although notable risks remain, especially surrounding regulatory approvals and the viability of complex therapies. This analysis examines the factors shaping forecasts for both firms and the challenges they face in achieving recovery and growth.

Key Points

Intellia Therapeutics’ stock has declined 19% following a clinical hold on its gene editing therapy nex-z after a patient death during phase 3 trials.
Wall Street analysts project that Intellia’s shares could rise by 139% if regulatory hurdles are overcome and the drug proves safe and effective.
Iovance Biotherapeutics’ revenue from its personalized cancer therapy Amtagvi is growing, nearly doubling in the first nine months of 2025, with ongoing regulatory approvals expanding its market reach.

In the biotechnology sector, innovation often accompanies volatility. Two companies exemplifying this dynamic are Intellia Therapeutics and Iovance Biotherapeutics. Both firms, although pioneering in their fields, have seen steep stock value declines in the current year. Intellia Therapeutics’ shares have fallen by 19%, while Iovance Biotherapeutics’ market value has diminished by 61% amid company-specific obstacles.

Despite their current depressed valuations, some Wall Street analysts interpret these levels as markedly undervalued when juxtaposed with the companies' prospective growth. Specifically, the consensus average price target for Intellia Therapeutics sits at $22.43, suggesting an impressive 139% increase from its present trading price. For Iovance Biotherapeutics, the average forecasted target price is $8.35, implying a potential rise of 191% from current levels. To consider whether investors should act on these projections, a detailed review of each company’s recent developments and outlook is necessary.

Intellia Therapeutics: Progress and Uncertainty in Gene Editing

Intellia Therapeutics specializes in gene editing technologies, advancing treatments with the potential to transform the management of genetic disorders. The company’s candidate, known as nex-z, targets transthyretin amyloidosis—a rare but serious condition characterized by protein deposits damaging organs, particularly the heart.

Clinical progress encountered a serious setback when regulatory authorities in the United States imposed a clinical hold on nex-z following the death of a participant in phase 3 trials due to liver damage. The causative link between the drug and the fatality remains indeterminate, casting a shadow of uncertainty over the development program and contributing to the stock’s decline.

Market reaction to this event has been notably adverse, reflecting investor caution during the ongoing regulatory review process. Until U.S. Food and Drug Administration approval is granted or definitively denied, Intellia remains in a holding pattern.

Should subsequent investigations absolve nex-z of responsibility, the stock could see a significant rebound. Intellia’s addressable market for this therapy includes roughly 50,000 hereditary transthyretin amyloidosis sufferers and, notably larger, 200,000 to 500,000 patients with the wild type form. This broader scope offers substantial growth potential if the therapy clears regulatory hurdles.

Yet even without the clinical hold, other challenges persist. Gene editing therapies typically encounter difficulties regarding pricing, administration logistics, and reimbursement arrangements. Smaller biotechs like Intellia may find securing insurance coverage and scaling treatment centers particularly demanding. These factors extend to lonvo-z, another gene editing drug in Intellia’s pipeline in late development stages.

Considering these complexities, the investment risk remains high, regardless of the clinical hold resolution. While a 139% stock appreciation by next year is possible, the uncertainties recommend a cautious approach, especially for long-term investors evaluating risk versus reward.

Iovance Biotherapeutics: Growth Amid Production and Profitability Challenges

Iovance Biotherapeutics offers a different profile. The company currently markets Amtagvi, a personalized cancer therapy that employs a patient’s own cells to combat advanced melanoma—a serious form of skin cancer. Since its launch last year, Amtagvi has demonstrated promising revenue growth, reporting $176.7 million in sales in the first nine months of 2025, nearly doubling prior year figures.

Regulatory progress continues as well, with recent approvals in Canada and ongoing efforts to expand market access in Europe and Australia. In parallel, clinical trials are underway which could support label expansions, potentially broadening the treatment’s reach beyond its current estimated addressable patient population of approximately 30,000 globally.

However, despite these positive signals, the company’s stock trajectory remains depressed. Contributing factors include the complex and costly manufacturing and administration process required by Amtagvi. Production entails harvesting cells from a patient’s tumor, processing these cells into a therapeutic product, and reintroducing them post-chemotherapy—a procedure necessitating extensive time and specialized resources.

These operational intricacies burden Iovance with high production costs and pose challenges in achieving profitability, tempering enthusiasm for the stock despite sales growth. Given these constraints, the likelihood of the stock appreciating near analyst targets — which indicate a potential 191% gain — appears limited within the near term.

Consequently, despite its innovative therapy and expanding geographic footprints, the company faces substantial hurdles that may delay sustainable financial performance improvements.

Summary and Considerations for Investors

Both Intellia Therapeutics and Iovance Biotherapeutics illustrate the volatile intersection of advanced biotech innovation, clinical risk, and complex commercial realities. Each company’s stock is currently priced well below analyst price targets, reflecting skepticism driven by recent setbacks and inherent operational challenges.

Intellia’s fate depends largely on forthcoming regulatory clarity regarding the safety of nex-z. If cleared, Intellia could capitalize on a sizeable patient population and its advanced gene editing platform, potentially validating the significant projected upside. Nonetheless, risks including clinical trial outcomes, market adoption hurdles, and reimbursement issues remain formidable.

Iovance demonstrates commercial momentum with Amtagvi but grapples with manufacturing complexity and cost that shadow profitability prospects. While label expansions may enhance future market potential, these factors presently constrain share price appreciation potential in the near term.

For investors weighing entry ahead of 2026, a thorough understanding of these specific clinical, regulatory, and operational dynamics is essential. The prospect of robust stock performance must be balanced against the substantial risks and uncertainties inherent in pioneering biotech ventures.

Risks
  • The cause of the patient death in Intellia’s clinical trial remains uncertain, creating regulatory risk and delaying potential FDA approval.
  • Gene editing therapies like those Intellia develops face challenges including expensive administration, reimbursement obstacles, and a complex treatment rollout.
  • Iovance’s production process for Amtagvi is costly and operationally complex, impeding a clear path to profitability despite revenue growth.
Disclosure
This analysis is based solely on publicly available information about Intellia Therapeutics and Iovance Biotherapeutics. It does not constitute investment advice and should not be relied upon as such. Investors should consider all risks and conduct their own due diligence before making investment decisions.
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