Amgen vs. Iovance Biotherapeutics: Which Healthcare Stock Is a Better Buy in 2026?

Does the established stability of a pharmaceutical giant outweigh the explosive growth potential of a specialized cancer fighter? Investors choosing between Amgen (NASDAQ:AMGN) and Iovance Biotherapeutics (NASDAQ:IOVA) must weigh reliability against innovation.

Amgen offers a massive drug portfolio with deep roots in the medical field. Iovance is a smaller player focused on cutting-edge tumor-infiltrating lymphocyte therapies. While both operate within the medical space, their financial profiles and maturity levels create very different investment cases for those looking at the year 2026.

The case for Amgen

Amgen focuses on discovering and manufacturing medicines for serious diseases across several therapeutic areas. It sells its products globally, reaching customers in more than 50 countries including major markets like Europe and Japan. The company relies heavily on three major pharmaceutical wholesalers, McKesson Corporation, Cencora, and Cardinal Health, which collectively accounted for 77% of its worldwide gross revenues in 2025. Customer concentration like this adds a layer of risk to the business.

In FY 2025, revenue reached nearly $36.7 billion, representing growth of approximately 9.9% compared to the previous year. This revenue performance supported a net income of close to $7.7 billion. The company maintained a net margin of roughly 21.0%, which measures the percentage of revenue remaining as profit after all expenses are paid. This reflects a healthy return on its massive sales volume compared to the prior fiscal year.

As of its December 2025 balance sheet, the debt-to-equity ratio stood at roughly 6.3x. This ratio compares total debt to shareholder equity, indicating the company uses significant leverage to fund its operations. The current ratio, which measures the ability to cover short-term obligations with assets that can be converted to cash within a year, was approximately 1.1x. Free cash flow, or the cash generated after paying for capital investments, was close to $8.1 billion for the year.

The case for Iovance Biotherapeutics

Iovance Biotherapeutics is among the emerging biotech stocks focusing on tumor-infiltrating lymphocyte (TIL) therapies for cancer. Its primary products, Amtagvi and Proleukin, are distributed through a network of Authorized Treatment Centers and pharmaceutical distributors. The company relies on its own internal manufacturing facility, known as the iCTC, to maintain control over its complex production process. Its success depends on the clinical adoption of these novel therapies within the oncology landscape.

During FY 2025, the company reported revenue of approximately $263.5 million, which was a 60.6% increase over the previous year. Despite this rapid growth, the company reported a net loss of nearly $391.0 million. This resulted in a net margin of negative 148.4%, illustrating that the company is still in a heavy spending phase to support its clinical development and commercial launch. This is common for younger biotechnology firms prior to achieving large-scale commercial success.

As of the December 2025 balance sheet, the debt-to-equity ratio was roughly 0.1x, indicating very low levels of debt relative to equity. Its current ratio was approximately 3.2x, suggesting a strong ability to meet short-term financial commitments with its available liquid assets. Free cash flow was negative at close to $336.2 million for the fiscal year. This negative cash flow means the company is currently using its cash reserves to fund its ongoing operations rather than generating excess cash.

Risk profile comparison

Amgen faces significant risks from government pricing regulations, such as the Inflation Reduction Act, which could mandate price setting and increase rebate obligations. It also deals with manufacturing dependencies, as a substantial portion of its production is centralized in Puerto Rico and California. Furthermore, the company faces accelerating competition from biosimilars and generics, especially as patents for key drugs like Prolia and XGEVA expire. Litigation remains a factor, as seen in recent multi-million dollar settlements and jury verdicts involving patent infringement.

Iovance Biotherapeutics faces risks related to the high complexity of manufacturing individualized TIL therapies, where any process failure could halt its product supply. The company also faces uncertainty regarding market adoption and whether insurance companies will provide adequate reimbursement for its expensive treatment regimens. Clinical development remains a major hurdle, with success dependent on ongoing trials like TILVANCE-301. Regulatory hurdles or safety concerns could limit its commercial prospects, especially as it competes in a field with large players like Novartis.

Valuation comparison

Amgen appears to be the more traditional value play with an established earnings multiple, while Iovance carries a valuation that reflects its early-stage growth profile.

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Which stock would I buy in 2026?

I'd go with Amgen. Iovance is doing extraordinary work in cancer treatment with its Amtagvi therapy, and the science behind it is compelling. Revenue is growing quickly, and the company is expanding into new cancer indications that could significantly broaden its reach.

But Iovance is still unprofitable, and it recently missed its quarterly revenue targets. The stock sold off sharply as a result. The cash runway extends into 2028, which offers some breathing room, but this is still a company with a lot left to prove. For investors with a higher risk tolerance, it might be worth a closer look, but it's not a comfortable long-term hold for me right now.

Amgen, by contrast, is one of the most dependable names in biotech. Sixteen of its brands are growing at a double-digit rate. It keeps raising its full-year outlook, and it pays a solid dividend along the way. Biosimilar competition is a real headwind, but management is navigating it well. I’m picking the steadier ship here.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen and Iovance Biotherapeutics. The Motley Fool has a disclosure policy.