company background image
NVCR

NovoCure NasdaqGS:NVCR Stock Report

Last Price

US$73.22

Market Cap

US$7.7b

7D

-15.8%

1Y

-42.5%

Updated

24 Sep, 2022

Data

Company Financials +
NVCR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

NVCR Stock Overview

NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Europe, the Middle East, Africa, Japan, and Greater China.

NovoCure Limited Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NovoCure
Historical stock prices
Current Share PriceUS$73.22
52 Week HighUS$126.66
52 Week LowUS$56.39
Beta0.79
1 Month Change-14.02%
3 Month Change-3.15%
1 Year Change-42.48%
3 Year Change-0.30%
5 Year Change268.87%
Change since IPO300.55%

Recent News & Updates

Sep 21

Novocure creates new CNS focused franchise to renew growth in brain cancer business

Oncology company Novocure (NASDAQ:NVCR) on Wednesday announced the creation of a central nervous system focused cancers franchise. NVCR's chief development officer Frank Leonard was named president of the new organization, U.S. CNS Cancers Franchise. The franchise was "intended to renew focus on growth in Novocure’s glioblastoma (GBM) business," NVCR said in a statement. NVCR in July reported a wider-than-expected Q2 loss on the back of increased costs. "This new organization will add resources, streamline decision-making and improve coordination," the company added. NVCR stock +2.5% to $84.50 in premarket trading.

Sep 09
Does NovoCure (NASDAQ:NVCR) Have A Healthy Balance Sheet?

Does NovoCure (NASDAQ:NVCR) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Sep 09

NovoCure: Does The Reward Outweigh The Risk? I Believe So

Summary NovoCure has maintained a large amount of institutional investors since IPO in 2015, and has nearly 78% of shares held by institutions today. Insider Ownership is high as well at 14% indicating employees have conviction in the long-term outlook of the company. NovoCure is not profitable and has a debt to equity ratio of 127%, which can be concerning for any investor. NovoCure has several phase three trial readouts due in 2023 and 2024 that could grow its patient opportunity by 1,400%. NovoCure has three FDA approvals for its Optune Medical Devices treating Glioblastoma and Mesothelioma and has already rewarded shareholders from the IPO in 2015 with gains of over 330%. Thesis NovoCure Inc. (NVCR) is a biotech stock with risk but has both institutions and insiders buying shares for the potential outsized reward. I believe there is enough evidence from NovoCure's business to give retail investors to also buy the stock. NovoCure has maintained a large amount of institutional and insider investors since IPO in 2015. Currently NovoCure has nearly 78% of its shares held by institutions and 14% by insiders at the company. Future Growth and Patent Protection NovoCure is poised for substantial patient growth and strengthening its moat in being able to provide FDA approved treatment for some of the most aggressive cancers. There are several catalysts that could help grow its potential patient audience by 1,400%. If these phase three trials deliver positive readouts and ultimately get FDA approval, the share price could increase significantly. In addition to expanding its total addressable market, NovoCure has over 140+ patents regarding Tumor Treating Fields ((TTF)) for cancer. Some of these patents do not expire until 2035, continuing to expand the competitive advantage NovoCure has in the industry. NovoCure's presence in the market is in a position of strength as it does not directly compete with chemotherapy and other cancer treatments, but augments the treatment for even better results. Consequently, it currently has no true formidable competitor in the industry that can steal market share. Expanding Market Opportunity for NovoCure Inc. (July 2022 Investor Presentation) Yoram Palti, M.D., Ph.D. invented the Tumor Treating Fields technology, holds 40 patents personally, and 70+ published scientific papers, and founded NovoCure in 2000. He still plays a role in the company today as the Chief Technology Officer and consultant. Their CEO Asaf Danziger is also like a founder in my opinion as he has been the CEO for the last 20 years. NovoCure is expanding their competitive advantages in this market with their patent protection for this technology for future years to come, the creator of the technology and of NovoCure is still at the company contributing, and new applications of TTF for other types of cancer could soon could be FDA approved. These detailed comments from NovoCure's most recent earnings 10-Q showcase how robust the future pipeline is for the company. We believe the physical mechanism of action behind TTFields therapy may be broadly applicable to solid tumor cancers. Currently, we are conducting phase 3 pivotal studies evaluating the use of TTFields in non-small cell lung cancer ("NSCLC"), ovarian cancer, brain metastases from NSCLC, and pancreatic cancer. In 2021, we completed patient enrollment in our phase 3 pivotal NSCLC and ovarian cancer studies. Additionally, we have multiple ongoing or recently completed phase 2 pilot studies evaluating the use of TTFields. These studies are in gastric cancer and stage 3 NSCLC, as well as testing the potential incremental survival benefit of TTFields delivered using high-intensity arrays versus standard arrays. We are also currently conducting a global phase 4 post-marketing study testing the potential survival benefit of initiating Optune concurrent with radiation therapy versus following radiation therapy in patients with newly diagnosed GBM. We anticipate expanding our clinical pipeline over time to study the safety and efficacy of TTFields for additional solid tumor indications and combinations with other cancer treatment modalities. What is Tumor Treating Fields? And Does it Work? Tumor Treating Fields are alternating electric fields tuned to specific frequencies to disrupt cancer cell division, which results in either slowing or reversing the tumor growth. The patient has to wear these adhesive patches on the place of where the cancer tumors reside and those patches are connected to NovoCure's Optune medical device. The device transmits electrical fields that disrupt the cancer cell division where the tumor is located. Currently a patient would wear a cap with these adhesive patches if they had Glioblastoma ((GBM)) which is an aggressive type of brain cancer. The other place a patient would wear the patches is on their chest if they had Mesothelioma cancer. Both of these cancers are some of the most aggressive around and NovoCure's technology gives extended quality of life to those who have one of these cancers. As my readers know I like to invest in companies that I believe are making the world a better place to live in, and NovoCure easily checks this box. Optune: Lua FDA Approved Device (July 2022 NovoCure Investor Presentation) The TTF technology from NovoCure has proven results for extending the quality of life for patients with Glioblastoma and Mesothelioma. It is important to point out that this technology is not meant to replace traditional cancer treatments, but in tandem of the treatments. See below Newly Diagnosed GBM patients who had TMZ treatments increased their overall two-year and five-year survival rates when doing the treatments while also using NovoCure's Optune device. 2021 NovoCure Corporate Presentation The innovation of this company continues to widen, as NovoCure has several new clinical trials growing their pipeline and more trials nearing Phase 3/4. This will create new patients to help who have pancreatic, ovarian, non-small cell lung cancer, and grow revenues significantly. NovoCure has a three pillar strategy for generating long-term growth, 1. Drive Commercial Adoption in Approved Indications, 2. Advance Clinical Trials in New Indications and combinations, and 3. Deliver Product Innovation to optimize TTFields therapy. NovoCure has a global footprint and continues to drive more commercial adoption with different countries and insurer programs to cover their treatments. With building more relationships with insurers and healthcare systems globally, NovoCure will be able to increase patient demand. The current penetration for the company with newly diagnosed GBM is 35%, so there are still so many more people NovoCure can help globally. The strategy with expanding TT Fields clinical footprint is built on the following: explore synergies with evolving standards of care, expand label in approved indications, and investigate use in new indications. NovoCure is working with other pharmaceutical companies like Merck & Co (MRK) to start joint efforts for clinical trials with their technology and immunotherapy agents. Lastly NovoCure has already optimized their medical device Optune to a smaller edition called Optune Lua which is more portable, practical, and lightweight for patients. NovoCure is expanding on their device innovations to drive better efficacy in results and ease of use of the devices. They are working to create a next gen device that will generate electric fields like Optune, flex arrays (patches with higher-intensity capabilities for greater efficacy), and a new software platform for their technology. Risks to Be Aware Of NovoCure has four different clinical trials that will have readouts in the next 12-24 months and if those readouts are negative, it could cause the stock to heavily drop. Biotech stocks tend to be very lumpy in nature and volatile because the revenues depend much on what new FDA approvals can be acquired for new treatments. For NovoCure to reach more exponential revenues, it will need to be able to serve more common cancers that have larger patient counts. This will require getting those FDA approvals for the Optune technology. This company is also not profitable and in today's market environment that is typically not favorable for investors. The reason NovoCure is not profitable is because it is investing in its future growth opportunities and capture new patient audiences geographically. NovoCure is a global company that serves the United States, Germany, other EMEA countries, Japan, and China. The sales and marketing spend this past quarter grew 31% y/y and R&D spend also grew 13% y/y, but NovoCure is not going to apologize for this. In the past 10-Q document the company stated the following reasons for increasing expenses in these areas. Q2 2022 10-Q Financial Results "The change was primarily due to an increase in market research and strategic planning activities intended to enhance our commercial capabilities in anticipation of potential future approvals in new indications, including NSCLC and ovarian cancer. Additionally, we are investing in market access capabilities in order to evaluate opportunities, identify optimal access pathways, and successfully gain reimbursement in new geographies."

Shareholder Returns

NVCRUS Medical EquipmentUS Market
7D-15.8%-7.0%-5.2%
1Y-42.5%-32.8%-23.0%

Return vs Industry: NVCR underperformed the US Medical Equipment industry which returned -32.8% over the past year.

Return vs Market: NVCR underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is NVCR's price volatile compared to industry and market?
NVCR volatility
NVCR Average Weekly Movement6.3%
Medical Equipment Industry Average Movement8.5%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: NVCR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NVCR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20001,167Asaf Danzigerhttps://www.novocure.com

NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Europe, the Middle East, Africa, Japan, and Greater China. Its TTFields devices include Optune for the treatment of glioblastoma; and Optune Lua for the treatment of malignant pleural mesothelioma. The company also has ongoing or completed clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer.

NovoCure Limited Fundamentals Summary

How do NovoCure's earnings and revenue compare to its market cap?
NVCR fundamental statistics
Market CapUS$7.67b
Earnings (TTM)-US$68.24m
Revenue (TTM)US$545.23m

14.1x

P/S Ratio

-112.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NVCR income statement (TTM)
RevenueUS$545.23m
Cost of RevenueUS$115.48m
Gross ProfitUS$429.75m
Other ExpensesUS$497.99m
Earnings-US$68.24m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.65
Gross Margin78.82%
Net Profit Margin-12.52%
Debt/Equity Ratio127.7%

How did NVCR perform over the long term?

See historical performance and comparison