DexCom earnings beat by $0.03, revenue topped estimates
On Friday, H.C. Wainwright reiterated its Buy rating on NovoCure Ltd. (NASDAQ:NVCR) shares, maintaining a price target of $38.00. The firm’s target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $27 to $40. The firm’s analyst, Emily Bodnar, provided an update on the company’s performance, noting a significant increase in the prescription and use of NovoCure’s Optune Lua for the treatment of non-small cell lung cancer (NSCLC). The stock, currently trading at $18.55, has shown strong momentum with a 19% gain in the past week.
NovoCure reported receiving 92 Optune Lua prescriptions for NSCLC in the quarter, with 62 active patients currently undergoing treatment. This marks a substantial rise from the 50 prescriptions and 20 active patients recorded in the fourth quarter of 2024, representing growth of approximately 40 patients in each category. The company also recorded $0.7 million in NSCLC revenues for the quarter, surpassing expectations for initial revenues, which were anticipated in the second half of 2025. This performance suggests that reimbursement processes are proceeding positively and earlier than predicted. According to InvestingPro data, NovoCure maintains a healthy gross profit margin of 77.3% and has achieved 18.3% revenue growth over the last twelve months.
The analyst highlighted that half of the prescriptions were for second-line (2L) patients and a further 25% for third-line (3L) patients, aligning with the FDA’s approved use. Additionally, 50% of patients were prescribed Tumor Treating Fields (TTFields) in combination with checkpoint inhibitors, while the other half were prescribed TTFields with docetaxel, indicating adherence to prior treatments with checkpoint inhibitors.
NovoCure estimates a target population of 30,000 eligible patients for their treatment, which includes various categories of patients in need of alternative treatment options. The company has also seen an increase in the number of unique prescribers of TTFields for NSCLC, with about 60% being new to prescribing the technology.
Looking ahead, NovoCure anticipates growth in future quarters to be driven by an expanding base of prescribers and continued prescriptions among existing prescribers. The recent CE Mark approval to market TTFields in the European Union, with a label consistent with the FDA’s, suggests a broad potential for the treatment’s use in second-line NSCLC.
In light of these developments, H.C. Wainwright has adjusted its revenue estimate for NSCLC treatments to $10 million for the year 2025, up from the previous forecast of $6 million. The firm’s analyst reaffirms the Buy rating and $38 price target for NovoCure stock.
In other recent news, Novocure reported its fourth-quarter earnings, revealing a loss of $0.61 per share, which missed analyst expectations by $0.25. Despite this, the company exceeded revenue estimates with $161.26 million, marking a 21% increase year-over-year. For the full year 2024, Novocure’s total net revenues reached $605.2 million, a 19% rise from the previous year, driven by the successful launch of Optune Gio for glioblastoma in France and improved approval rates in the U.S. Additionally, Novocure announced the CE Mark approval of Optune Lua for treating metastatic non-small cell lung cancer (NSCLC) in adult patients. This approval is based on the Phase 3 LUNAR trial, which showed a significant extension in median overall survival for patients using Optune Lua with immune checkpoint inhibitors or docetaxel. The company is preparing to launch Optune Lua in Germany, with plans for further European expansion. Novocure also highlighted the FDA approval of Optune Lua in the U.S. and the success of its Phase 3 PANOVA-3 trial for pancreatic cancer. As of December 31, 2024, Novocure reported having 4,126 active patients on its Tumor Treating Fields therapy globally and ended the year with $959.9 million in cash, cash equivalents, and short-term investments. The company anticipates gross margins will be affected by product enhancements, including the U.S. launch of its Head Flexible Electrode transducer arrays for Optune Gio and the rollout of Optune Lua for NSCLC.
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