H.C. Wainwright Boosts NovoCure Price to $24 After Promising METIS Trial Results

H.C. Wainwright raised its price target on NovoCure (NASDAQ: NVCR) from $22.00 to $24.00, maintaining a Neutral rating. The adjustment stems from promising METIS trial results, leading to an increased probability of success for NovoCure's NSCLC brain metastases treatment. Consequently, the firm revised its market share forecast to 15%, anticipating peak sales of $1.1 billion by 2037.

H.C. Wainwright Boosts NovoCure Price Target to $24 on METIS Trial Results

New York, Feb. 8, 2023 -- H.C. Wainwright & Co. has raised its price target on NovoCure Ltd. (NASDAQ:NVCR) to $24 from $22, maintaining a Neutral rating. The upward revision reflects positive topline results from the METIS trial, which assessed the efficacy of NovoCure's treatment for brain metastases from non-small cell lung cancer (NSCLC).

Encouraging METIS Trial Outcomes

The analyst upgraded the probability of success (POS) for NovoCure's treatment in this indication from 60% to 80%. This adjustment stems from the observed extension of intracranial time to progression and the absence of additional safety concerns compared to stereotactic radiosurgery (SRS) alone. These factors enhance the likelihood of regulatory approval.

Market Opportunity and Peak Sales Forecast

H.C. Wainwright projects NovoCure's treatment for brain metastases from NSCLC to capture a peak market share of 15%, assuming an FDA application submission by early 2025. Peak sales are anticipated to reach $1.1 billion by 2037, given the substantial market opportunity. Approximately 25% of NSCLC patients develop brain metastases, and up to half experience such lesions during their disease course.

Synergies and Sales Force Expansion

The analyst emphasizes the potential synergies between NovoCure's NSCLC brain metastases treatment and its existing glioblastoma multiforme (GBM) business. Additionally, a second-line metastatic NSCLC treatment launch is anticipated in 2025. To support these growth initiatives, NovoCure is expected to increase investments in its NSCLC-focused sales force, leading to higher selling, general, and administrative (SG&A) expenses in 2024.

Financial Health and Analyst Sentiment

NovoCure's market capitalization stands at $1.61 billion, with a gross profit margin of approximately 74.96% for the past twelve months through Q4 2023. Despite these strong margins, the company remains unprofitable, with an operating income margin of -44.4%.

InvestingPro insights indicate that three analysts have recently revised their earnings estimates for NovoCure upward, suggesting a shift in market sentiment. The company's balance sheet exhibits financial stability, with more cash than debt.

Investment Considerations

Investors should note that NovoCure's stock has experienced price volatility and declined 19.82% in the past month. For more comprehensive analysis and insights, visit https://www.investing.com/pro/NVCR and consider using the coupon code PRONEWS24 for a 10% discount on a yearly or biyearly InvestingPro subscription.