On Friday, H.C. Wainwright adjusted its financial outlook for NovoCure Ltd. (NASDAQ: NASDAQ:NVCR), increasing the price target to $24 from $22 while retaining a Neutral rating on the stock. The firm's decision follows NovoCure's announcement of its second quarter financial results on July 25, which showed a sales increase to $150.4 million, marking an 8.6% rise from the first quarter of 2024.
The revenue growth was primarily attributed to the successful launch of Optune in France, with the region generating $14.3 million in sales. This performance exceeded the company's previous quarter revenues, which had already surpassed both H.C. Wainwright's estimate of $139.6 million and the consensus estimate of $135.8 million. However, the company noted that $7.6 million of the second quarter revenue was non-recurring, comprising improved approval rates from prior period claims in the US and a one-time payment from a private payer in the UK.
NovoCure reported that the number of active patients using their therapy reached a record high of 3,963 in the second quarter. Despite a flat growth in the U.S. market at $90.7 million, due to nearly reaching full approval for patients, the company is experiencing robust growth in France, with a penetration rate of approximately 40%. The company also indicated that the French market could potentially exceed the size of their German market.
Looking ahead, NovoCure is working on achieving national reimbursement in Italy and Spain, with expectations that these markets could be similar in size to France. H.C. Wainwright has adjusted its 2024 revenue estimates for NovoCure to $586.6 million, which would represent a year-over-year growth rate of 16.7%. The firm anticipates that additional market launches could occur in 2025, which may contribute to future growth.
In other recent news, Novocure, a global oncology company, announced significant findings from its phase 3 METIS trial. The trial showed that its Tumor Treating Fields (TTFields) therapy significantly delayed the progression of brain metastases in patients with non-small cell lung cancer. The therapy was well-tolerated and did not negatively impact quality of life or cognitive function. Novocure's Chief Medical Officer, Nicolas Leupin, expressed eagerness to pursue regulatory steps to make TTFields therapy available to those in need.
In the financial sphere, Novocure reported a 13% year-over-year increase in net revenues to $139 million in the first quarter of 2024, with a record number of prescriptions and active patients on therapy. The company is well-positioned for upcoming product launches and clinical data readouts, bolstered by a new $400 million credit facility.
Analysts' outlook on Novocure is mixed. Piper Sandler reaffirmed its Overweight rating on NovoCure Ltd., citing the company's advancing cancer treatments. On the other hand, H.C. Wainwright adjusted its outlook, lowering the price target while keeping a Neutral rating on the stock, despite the company's solid first-quarter performance and growth potential. These are the recent developments for Novocure.
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