SLS, IOVA, IBRX Slump In October As Biotech Stocks Hold Steady: Virginia Pension Fund Raised Stakes In All 3

Virginia Retirement System entered October with larger stakes in three small-cap biotech names, according to recent filings reviewed by the publisher. The pension fund's holdings in Sellas Life Sciences rose 52% to 35,600 shares after it added 9,100 shares to a base of 26,500 as of September 30. Its Iovance Biotherapeutics position increased 22%, with 23,400 shares added to 131,450, while its ImmunityBio stake rose 2%, with 1,500 shares added to 76,000. The three positions were worth nearly $3 million combined at quarter-end.

Despite that accumulation, all three stocks declined in October. SLS fell 18% month to date, IOVA dropped 35% and IBRX lost 7%, lagging the SPDR S&P Biotech ETF (XBI), which recovered from earlier weakness to trade nearly flat for the month.

Iovance's decline was driven by updated data on Lifileucel in lung cancer. The shares plunged 36% to $9.56 on Thursday after the company reported a 24.6% response rate in 69 patients, down from 25.6% in 39 patients previously reported; two responses await confirmation. A retrospectively selected subgroup of 22 patients achieved a 59.1% response rate, including two complete responses. Interim CEO Frederick Vogt said nearly six in ten patients in the enriched subgroup responded. Iovance plans to begin enrolling a prospective biomarker-selected cohort in November and targets a 2027 FDA submission for the broader lung-cancer program. Lifileucel is marketed as Amtagvi for advanced melanoma, and demand for Amtagvi and Proleukin drove the company to raise its 2026 revenue guidance to $410 million to $420 million in September, from $350 million to $370 million.

Sellas fell nearly 15% on Wednesday and another 2.2% on Thursday to $10.16 after its Phase 3 Regal trial, testing Galinpepimut-S as maintenance treatment for patients in second complete remission, reached its 80th event. The milestone triggers database lock, unblinding and final analysis, with preliminary topline results expected this quarter. CEO Angelos Stergiou called the milestone critical. The trial has not yet established whether GPS improved overall survival, the primary endpoint.

ImmunityBio's decline came despite the FDA's recent expansion of Anktiva plus BCG's approval to include BCG-unresponsive bladder cancer with papillary-only tumors. The next catalyst is the November readout from the 366-patient Quilt-2.005 trial comparing Anktiva plus BCG with BCG alone in patients who have not previously received BCG. ImmunityBio completed database lock last week and plans a fourth-quarter FDA submission. CNBC's Jim Cramer called the company a "very good spec" earlier in the week, citing biotech takeover activity.

Institutional activity was mixed beyond the Virginia fund. China Universal and Mirae Asset each raised IOVA and IBRX holdings by 16%, while Raiffeisen cut its IOVA stake by 26% to 280,000 shares and Leonteq reduced its holding by 60% to 60,000 shares. In SLS, Daiwa cut its position by 99.9% to 100 shares, and Wyoming reduced its stake by 92% to 1,635 shares. Retail sentiment on Stocktwits was 'extremely bullish' for IBRX, 'bullish' for SLS and 'bearish' for IOVA. Year to date, IBRX has risen 341%, IOVA 250% and SLS 169%, all ahead of XBI's 30% gain.