Shares of Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) plummeted 28.79% in after-hours trading on Thursday following the release of its second quarter 2025 financial results and the announcement of a strategic restructuring plan.

The biotechnology company, which focuses on developing tumor infiltrating lymphocyte (TIL) therapies for cancer treatment, reported a quarterly loss of $0.33 per share, missing analyst consensus estimates of $0.29 by 14.58%. Revenue for the quarter came in at $59.952 million, falling short of the expected $69.792 million by 14.10%. Despite the year-over-year revenue growth of 92.73%, the earnings miss appears to have disappointed investors.

Adding to the negative sentiment, Iovance announced a strategic restructuring plan aimed at optimizing business performance. The plan includes a workforce reduction of approximately 19% in the third quarter of 2025, which is expected to result in over $100 million in annual cost savings starting in the fourth quarter of 2025. While the company stated that no significant changes to its pipeline are expected, the restructuring news seems to have raised concerns among investors about the company's future growth prospects. Furthermore, Iovance revealed that it had withdrawn its marketing authorization application from the European Medicines Agency (EMA) for its lead product, Amtagvi, in the treatment of advanced melanoma, citing the need to develop a new strategy for making the therapy accessible to patients in the EU. This setback in the European market likely contributed to the sharp stock decline.