Iovance Biotherapeutics edges out Heartflow as the better healthcare buy for 2026

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Summary · why it matters

Iovance Biotherapeutics is favored over Heartflow as the better risk-adjusted healthcare stock for 2026, based on its lower price-to-sales ratio. Heartflow, which relies on its FFR CT Analysis product for 98% of its roughly $176 million in fiscal 2025 revenue, posted a net loss of $116.8 million and negative free cash flow of nearly $59 million. Iovance generated $263.5 million in revenue, a 60.6% increase, but recorded a deeper net loss of about $391 million and negative free cash flow of $336.2 million. Both companies carry a debt-to-equity ratio of approximately 0.1x and are not expected to turn free cash flow positive until 2028. Heartflow faces concentration risk and a proposed 15% Medicare reimbursement cut, while Iovance manages an accumulated deficit of $2.9 billion and complex manufacturing challenges.