US Stocks: ImmunityBio shares drop 20% on FDA warning letter over cancer therapy claims in ad

Shares of ImmunityBio fell 20% ​on Tuesday ​after the U.S. Food ​and Drug Administration issued a warning letter that said a television advertisement and podcast promoting ‌its ⁠cancer ⁠therapy were false or misleading and violated ​federal law.

ImmunityBio's Anktiva was approved for a ​type of bladder cancer in April 2024.

"These violations are concerning from ​a public health perspective ⁠because the ‌promotional communications create ​a misleading ​impression that Anktiva, a ⁠treatment for a certain type of bladder ​cancer, can cure and even ​prevent all cancer," the FDA said in the letter issued to the company on March 13.


The agency said the ‌direct-to-consumer materials, which featured CEO Richard Adcock and Executive Chairman ​Patrick Soon-Shiong, ​created the ⁠impression that Anktiva could cure cancer, prevent its return, work as a single-agent ​therapy, or function as a cancer vaccine.

ImmunityBio did not immediately respond to a Reuters request for comment.