ImmunityBio Encounters Potential FDA Action as Shares Challenge $6.88 Level Following Promotional Setback

FDA Warning Sparks Market Turmoil

On March 13, 2026, the FDA's Office of Prescription Drug Promotion (OPDP) issued a stern warning to ImmunityBio regarding two promotional items: a direct-to-consumer TV commercial and a podcast episode titled "Is the FDA BLOCKING Life Saving Cancer Treatments?" The podcast aired on The Sean Spicer Show on January 19, 2026, featuring CEO Richard Adcock and Executive Chairman Patrick Soon-Shiong. The FDA accused these materials of being deceptive, suggesting that Anktiva could treat or prevent all cancers, despite its approval being limited to a specific bladder cancer indication alongside BCG therapy. The promotional content implied broader efficacy than permitted, a clear breach of regulatory standards.

The fallout was immediate: ImmunityBio's stock plummeted up to 30% at the opening bell in New York on March 24, as investors rushed to sell amid fears of regulatory consequences and possible sales restrictions. Although the stock partially rebounded, the initial shock left a lasting mark, exemplifying how swiftly markets react to high-profile enforcement actions.

ImmunityBio responded quickly by removing the podcast from its website and requesting its deletion from other platforms. The company also clarified that the TV ad referenced in the FDA letter was never broadcast. Within the required 15 working days, ImmunityBio submitted a detailed reply to the FDA. Despite these efforts, the stock's sharp decline was not prevented, setting the stage for technical analysis focused on new supply and demand levels.

Market Dynamics: Price Action and Technical Analysis

The stock is currently navigating between the aftermath of a steep sell-off and the residual strength from a previous rally. Over the past 20 days, shares have dropped 18.53%, marking a significant correction from a prior 120-day surge of 199.2%. The FDA warning served as the catalyst for this abrupt reversal, as the market digests the earlier gains.

Trading volume and volatility have surged, reflecting heightened short-term interest. On April 6, ImmunityBio saw 14.22 million shares traded and daily volatility reached 6.831%. This points to significant uncertainty and active speculation, with intraday swings of 6.583% indicating the stock is testing new support and resistance levels.

Currently, the stock is priced around $7.30, well below its 52-week high of $12.43 but above the recent low of $6.88. This creates a supply zone just above the low and a demand zone near the current price. Sellers are challenging the $6.88 support, while buyers are defending the $7.30 level. A recent 2.24% uptick suggests buyers are active, but the overall negative 20-day trend shows bearish sentiment dominates. The stock remains volatile and range-bound, with the next breakout likely to be significant.

Breakout + Retest Long Strategy: Backtest Summary

• Entry: Close above 20-day high and 20-day SMA
• Exit: Close below 20-day low, after 10 trading days, take-profit at +10%, or stop-loss at -6%
• Period: April 6, 2025 – April 5, 2026

• Strategy Return: 24.68%
• Annualized Return: 29.44%
• Maximum Drawdown: 16.6%
• Profit-Loss Ratio: 1.13
• Total Trades: 8
• Winning Trades: 5
• Losing Trades: 3
• Win Rate: 62.5%
• Average Hold Days: 7
• Max Consecutive Losses: 1
• Average Win Return: 9.43%
• Average Loss Return: 6.99%
• Max Single Return: 14.13%
• Max Single Loss Return: 15.76%

Key Catalysts and Levels to Monitor

The stock is currently trading near $7.30, which serves as a crucial demand zone. The most immediate catalyst is the FDA's review of ImmunityBio's comprehensive response, submitted in late March. The agency has recognized the company's corrective actions, including removing the problematic podcast and committing to stricter compliance. ImmunityBio has submitted a thorough reply to the FDA. A favorable outcome could stabilize the stock and halt the decline, while further regulatory action may prompt renewed selling.

The pivotal technical level is the recent low of $6.88. If the stock falls below this mark, it would signal that sellers have gained control, potentially opening the door to the next support zone between $6.00 and $5.50. With a 20-day drop of 18.53%, a deeper decline remains a possibility if the promotional controversy persists. Traders should watch for increased volume if the price breaks below $6.88, as heavy selling would confirm a breakdown.

Looking further ahead, the focus shifts to ImmunityBio's drug pipeline. The supplemental Biologics License Application (sBLA) for ANKTIVA plus BCG in papillary NMIBC is a major catalyst. The FDA has acknowledged receipt of the updated filing, which includes new long-term follow-up data. Success here could broaden the drug's approved uses and address a larger patient population, providing a fundamental boost that may eventually outweigh the recent setbacks. However, this is a longer-term factor and not likely to impact the stock in the immediate future.

Trading Outlook

For traders, the setup is clear: monitor the $6.88 support for a decisive move. The FDA's response is the near-term trigger for a reversal, while the sBLA outcome represents the longer-term opportunity. At present, the stock remains in a volatile range, and the next significant move will depend on which catalyst emerges first.