NVCR - NovoCure gains as Wells Fargo upgrades on upcoming data readout

2023-05-16 10:48:58 ET

NovoCure ( NASDAQ: NVCR ) shares rose on Tuesday to approach a three-month high after Wells Fargo upgraded the stock to Overweight from Equal Weight citing a positive Phase 3 readout for the company’s Tumor Treating Fields (TTFields) therapy next month.

The decision comes as the Saint Helier, Jersey-based firm is set to present results from its Phase 3 LUNAR study for TTFields as a late-line option in metastatic, non-small cell lung cancer (NSCLC) on June 6 at a leading cancer-focused medical conference.

Wells Fargo analyst Lawrence Biegelsen projects upside for the stock in the event of a “sufficiently clean” LUNAR readout that could back approval for TTFields as a second-line option.

“While a 1L study will take time (we assume 2030 US launch), the significant TAM [total addressable market] in 1L boosts our DCF analysis,” the analyst wrote, highlighting the potential of TTFields as a first-line option.

Biegelsen, who raised his price target on NVCR to $104 from $70, projects a 60% chance of good second-line data backing a first-line move compared to a 40% chance of a mixed second-line readout.

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