NVCR - Revisited model leads Evercore to Street-low target on oncology firm

Evercore ISI says that getting some feedback on particulars around one oncology company's fiscal 2020 led it to take a deeper dive into revenue drivers - and to slash revenue estimates for the coming years. That's NovoCure (NASDAQ:NVCR), and after noting that the company's fiscal year saw a benefit from one-time Centers for Medicare and Medicaid Services back payments, it now agrees that "driving revs off a higher base was incorrect." In updating its numbers, it noticed compliance rates had plateaued, leading it to the revenue revisions. Quarter-over-quarter revenue growth in the past few years has been in the 6.5% to 8% range, Evercore notes. And backing out the one-time back payments from CMS from Q3 and Q4 2020, the ramp in fiscal 2020 was similar to historical trends. Assuming a similar Q4 growth ramp and no CMS back payment contribution, it's updated Q4 revenues to $142 million (and consensus

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Revisited model leads Evercore to Street-low target on oncology firm