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Can NovoCure Hit $100?

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NovoCure Ltd. (NVCR) has come a long way this year, and the shares are up an impressive 178 percent year-to-date.

Novocure is an oncology company commercializing its innovative therapy, Tumor Treating Fields to extend survival in some of the most aggressive forms of cancer.
Tumor Treating Fields are low intensity, alternating electric fields that work by disrupting cell division, inhibiting tumor growth and causing affected cancer cells to die.

The Company's tumor-treating electric field system is approved by the FDA for 3 indications under the Premarket Authorization (PMA) pathway.

-- Optune system for the treatment of adult patients with glioblastoma following tumor recurrence after receiving chemotherapy was approved in April 2011.
-- Optune system in combination with temozolomide for the treatment of adult patients with newly diagnosed glioblastoma was approved in October 2015.
-- NovoTTF-100L system in combination with Eli Lilly's approved lung cancer drug Alimta and platinum-based chemotherapy for the first-line treatment of patients with unresectable, locally advanced or metastatic malignant pleural mesothelioma was approved in May of 2019.

The Company's tumor-treating electric field system is also being evaluated in pivotal trials in pancreatic, liver, ovarian and non-small cell lung cancers as well as in brain metastases.

Timeline of anticipated events:

1. Data from HEPNOVA trial in the second half of 2020.

HEPANOVA is a phase II trial designed to test the efficacy and safety of Tumor Treating Fields (TTFields), generated by a medical device NovoTTF-100L(P) System in combination with Sorafenib (Nexavar) for patients diagnosed with advanced hepatocellular cancer that are not eligible for standard local therapies or surgery.

2. Data from METIS trial expected in 2021.

METIS is a pivotal, phase III trial designed to test the efficacy and safety of Tumor Treating Fields (TTFields), generated by a medical device, the NovoTTF-100M System in patients with newly diagnosed brain metastases from non-small cell lung cancer.

3. Data from LUNAR trial expected in 2022, with an interim analysis scheduled for the second half of 2020.

LUNAR is a pivotal, phase III trial designed to test the efficacy and safety of Tumor Treating Fields (TTFields), generated by a medical device, the NovoTTF-100L System in combination with immune checkpoint inhibitors or docetaxel for second-line treatment of patients with non-small cell lung cancer.

4. Data from PANOVA-3 expected in 2022, with an interim analysis anticipated in 2021.

PANOVA-3 is a pivotal, phase III trial designed to test the efficacy and safety of Tumor Treating Fields (TTFields), generated by a medical device NovoTTF-100L(P) System for use in locally advanced, pancreatic adenocarcinoma when added to gemcitabine and nab-paclitaxel.

5. Data from INNOVATE-3 trial expected in 2024, with an interim analysis anticipated in 2022.

INNOVATE-3 is a pivotal, phase III trial designed to test the efficacy and safety of Tumor Treating Fields generated by a medical device NovoTTF-100L(O) System in combination with paclitaxel for patients with platinum-resistant ovarian cancer.

Growing business

Over the years, the Company has significantly grown its revenue while shrinking its loss.





Metrics201620172018
Revenue$82.88Mln$177Mln$248.07Mln
Net Loss$131.85Mln$61.66Mln$63.56Mln
Loss per share$1.54$0.70$0.69

In the first half of 2019, net loss narrowed to $13.42 million or $0.14 per share on revenue of $160 million. This compared with a net loss of $36.23 million or $0.40 per share and revenue of $113.64 million in the year-ago quarter.

Given the Company's encouraging financials and the growing interest in its proprietary Tumor Treating Fields platform, it is worth keeping an eye on NVCR.

NVCR touched an all-time high of $90.57 in intraday trading yesterday, before closing at $90.49, up 4.77%.

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