ImmunityBio Shares Tumble Despite Record Revenue Performance

ImmunityBio’s impressive full-year 2025 results were met with a severe sell-off, highlighting the persistent volatility that continues to characterize this biotech firm’s trajectory into 2026.

Market Reaction Defies Strong Commercial Growth

The company’s immunotherapy, ANKTIVA, generated approximately $113 million in revenue for the year, representing a staggering 700 percent increase from the prior year. Unit sales grew by an even more remarkable 750 percent, with quarterly revenue climbing 20 percent sequentially.

Despite these figures, investor sentiment turned sharply negative. On Wednesday, March 4, the stock plunged over 13 percent to close at $9.02. This decline was particularly surprising given that the share price had rallied nearly 9 percent in the preceding days, buoyed by anticipation of robust earnings.

For the fourth quarter, ImmunityBio reported a loss per share of $0.06, which was narrower than the $0.08 loss analysts had forecast. The full-year 2025 net loss improved to $351.4 million, down from $413.6 million in 2024.

Divergence Between Analyst Confidence and Market Sentiment

Adding to the perplexing market move, the sell-off coincided with a significant price target increase from investment bank Piper Sandler. The firm raised its target from $7 to $12 and reaffirmed its “Overweight” rating. Analyst Edward Tenthoff projects net revenue of around $195 million for 2026.

The market’s reaction suggests that the positive news had already been priced in during the prior rally. The reported results, while strong, were insufficient to justify further gains.

Financial Position and Operational Costs

ImmunityBio’s financial position remains under pressure. For the twelve months ending December 2025, the company recorded revenue of $113.3 million alongside its $351.4 million net loss. Cash, cash equivalents, and short-term marketable securities totaled $242.8 million at year-end.

Although the annual loss narrowed by over $60 million year-over-year, long-term losses have grown at an average annual rate of 8.2 percent. The company currently reports a negative shareholders’ equity position, and its liquidity, at the current cash burn rate, covers less than one year of operations.

Should investors sell immediately? Or is it worth buying ImmunityBio?

Research and development expenses for 2025 were $218.6 million, up from $190.2 million the previous year. This figure includes a one-time $14 million impairment charge on fixed assets. Conversely, general and administrative expenses decreased to $150 million from $168.8 million, a reduction attributed to building internal teams and lower consulting fees.

Global Expansion Gains Momentum

ANKTIVA is now approved in 33 countries, including the United States, the United Kingdom, Saudi Arabia, and the European Union. Notably, Saudi Arabia granted the drug its first global approval for a lung cancer indication.

The company has established commercial partnerships across Europe and the MENA region, supported by a salesforce of over 100 representatives. New offices have been opened in Dublin and Saudi Arabia.

In January, the Saudi Arabian health authority issued two key approvals. Product shipments for the market entry are prepared, and ImmunityBio is working closely with local officials to coordinate imports despite the tense geopolitical situation in the Middle East.

Clinical Pipeline and Regulatory Strategy

In February 2025, the U.S. Food and Drug Administration (FDA) approved an expanded access program to address shortages of BCG for tumor therapy. The first patient received treatment with recombinant BCG in March 2025, and by February, 580 patients were enrolled.

This program is active across 100 clinical centers, including university hospitals and urology practices. Several thousand doses have already been administered, either as a monotherapy or in combination with ANKTIVA.

A meeting with the FDA is scheduled for this month to discuss the next development steps for recombinant BCG. ImmunityBio aims to expand ANKTIVA’s label to include BCG-naïve bladder cancer patients and international lung cancer indications. The planned submission for the BCG-naïve bladder cancer approval is set for the fourth quarter of 2026.

This regulatory milestone is pivotal. Approval would transition ANKTIVA from a second-line to a first-line therapeutic for non-muscle invasive bladder cancer, significantly expanding its addressable market. However, any indication of a future capital raise is likely to put downward pressure on the stock.