NVCR - NovoCure downgraded at Piper Sandler despite positive Phase 3 readout ahead

NovoCure Limited ( NASDAQ: NVCR ), the developer of tumor treating fields (TTFields) devices to treat cancer, reached a four-month low intraday on Monday after Piper Sandler downgraded the company despite positive views on a Phase 3 readout expected in Q1 2023.

NVCR advances LUNAR pivotal study to evaluate TTFields in patients with advanced non-small cell lung cancer whose cancers progressed despite platinum-based therapy,

Despite a potentially positive headline for topline data from the LUNAR trial expected in early January, the analysts led by Jason Bednar downgrade NVCR to Neutral from Overweight, citing concerns over how the company will advance the candidate towards commercialization.

NVCR's TTFields device Optune is already indicated in the U.S. to treat adults with carcinoma glioblastoma multiforme.

However, Piper Sandler questions how the company can overcome the challenges on the regulatory front, secure payer coverage, and market the treatment for "an entirely new indication."

Given the multi-year process, the analysts raise concerns over the potential stagnation of NovoCure's ( NVCR ) topline through 2025 amid ongoing challenges to GBM revenue in multiple markets. "…..but that's not how the Street is modeling the business," the team added, slashing the NVCR price target to $70 from $90 per share.

Read: Seeking Alpha contributor Hunting Alpha sees a 54% upside for the stock.

For further details see: