NVCR stock soars 69% after Novocure achieves once-in-six-year feat

Add NovocureStandard drug (NVCR) medical device improved survival for patients with advanced lung cancer, leading NVCR stock to soar on Thursday.




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The company sells a device that uses electric fields at specific frequencies to interrupt the rapid division of cancer cells. This prevents abnormal cancer cells from turning into tumours.

Novocure has tested its tumor treatment fields in addition to standard drugs. The combination led to a statistically significant improvement in overall survival for patients with stage 4 non-small cell lung cancer.

These patients are also resistant to specific chemotherapies. It has been six years since a Phase 3 testing regimen led to significant improvements in overall survival for these patients, Novocure executive chairman William Doyle said in a written statement.

“We are also excited about the deep performance of (areas of tumor treatment) as well as immunotherapy, which has the potential to significantly extend patient survival beyond what was previously thought possible. “, did he declare.

In today’s stock market, NVCR stock jumped 68.5% to close at 118.81.

NVCR stock: questions remain

Novocure expects to file for approval with the Food and Drug Administration in the second half of the year. He also plans to apply for CE marking in Europe at the same time.

But Evercore ISI analyst Vijay Kumar retained his underperforming rating on NVCR shares.

The study design was changed in early 2021 based on recommendations from an independent data monitoring committee, Kumar said in a report. The committee roughly halved patient recruitment and shortened the study from 18 months to 12 months. Since then, questions have been asked about the reasons for these changes.

Additionally, he noted that Novocure’s technology is in a unique position. Immunotherapy has become the standard of care in cancer treatment, surpassing chemotherapy. Novocure’s device showed superiority over immunotherapy, but not chemotherapy. It will be important to consider how Novocure handled this phenomenon when listing, he said.

Kumar has a price target of 42 on NVCR stock. He expects the lung cancer market to be worth less than $700 million for Novocure.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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