LAVA Therapeutics entered Q2 2025 with a cash balance that will sustain operations for roughly 12‑15 months, implying a burn of about $70 million‑$80 million per quarter. That rate is typical for a pure‑play, pre‑revenue immuno‑oncology biotech that is funding multiple early‑stage Gammabody® programs, but it is materially higher on a cash‑as‑percentage‑of‑burn basis than the larger, diversified immuno‑oncology peers such as Merck (MRK), Bristol‑Myers Squibb (BMY) or Roche (RHHBY), which draw heavily on product revenues and therefore burn only a few percent of their cash each quarter. Among true‑stage peers—e.g., Iovance Therapeutics, Nektar Therapeutics, and Immunocore—LAVA’s burn sits in the mid‑to‑high end; those companies typically burn $40‑$60 million per quarter with similar cash cushions, so LAVA’s runway is tighter.
From a trading standpoint, the elevated burn heightens dilution risk if the company must raise equity before achieving meaningful clinical read‑outs. Investors should watch the upcoming data milestones (first‑in‑human for its lead Gammabody® candidates) and any guidance on cash‑flow management (e.g., cost‑control measures or strategic partnerships). A breach of the 12‑month runway threshold could trigger a sell‑off, whereas a clear path to additional financing or a positive trial signal would provide a catalyst for upside. In practice, position sizing should reflect the runway‑to‑milestone ratio: a modest long bias for risk‑tolerant investors who believe the technology differentiates LAVA from larger peers, and a more defensive stance (or short‑cover hedge) for those wary of the cash‑burn pressure relative to the broader immuno‑oncology set.