Why Is ImmunityBio (IBRX) Stock Down 54% Today?


  • ImmunityBio (IBRX) stock is diving after getting a response from the U.S. Food and Drug Administration (FDA).
  • The FDA letter rejects ImmunityBio’s application for Anktiva as a bladder cancer treatment.
  • This news has shares of IBRX stock seeing heavy trading on Thursday.
IBRX Stock - Why Is ImmunityBio (IBRX) Stock Down 54% Today?

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ImmunityBio (NASDAQ:IBRX) stock is falling on Thursday after the company got a complete response letter from the U.S. Food and Drug Administration (FDA).

That letter has to do with the company’s Biologics License Application (BLA) for Anktiva in combination with Bacillus Calmette-Guérin (BCG). This is meant to act as a treatment for patients “with BCG-unresponsive non-muscle invasive bladder cancer (“NMIBC”) with carcinoma in situ (“CIS”) with or without Ta or T1 disease.”

The response letter from the FDA sees the administration rejecting the company’s BLA. However, the regulator does provide ImmunityBio with guidance on how to address the application’s issues. That includes a pre-license inspection of its third-party contract manufacturing organizations.

ImmunityBio says that it plans to address the issues pointed out in the FDA’s response letter. The company also intends to seek out a meeting with the regulator to set a timeline to overcome the complaints.

What This Means for IBRX Stock

Shares of IBRX stock falling alongside today’s response letter makes sense. Investors are expressing their displeasure with the results and the impact it could have on the company’s future, which includes its plans to partner with a larger company to distribute Anktiva.

With this comes heavy trading of IBRX stock as investors sell shares. That has over 13 million units on the move as of this writing, as compared to the daily average of around 5 million shares. IBRX is also dropping 53.9% as of Thursday morning.

There’s more of the latest stock market news that traders need to know about down below!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/why-is-immunitybio-ibrx-stock-down-54-today/.

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