NovoCure stock initiated with Buy rating at Ladenburg Thalmann

Investing.com - Ladenburg Thalmann initiated coverage on NovoCure Ltd. (NASDAQ:NVCR) with a Buy rating and a $30.00 price target on Tuesday. According to InvestingPro data, this target aligns with the broader analyst consensus, as the stock currently trades well below the average analyst target of $33.50, with analysts maintaining a "Buy" recommendation.

The firm’s bullish stance is based on three key factors, including a positive outlook for NovoCure’s Optune Gio treatment to maintain strong market share in glioblastoma multiforme (GBM).

Ladenburg Thalmann also cited a path to profitability through uptake of the company’s Optune Lua in second-line non-small cell lung cancer (NSCLC) treatment, along with growing evidence supporting Tumor Treating Fields (TTFields) as a platform technology for various solid tumor populations.

While the firm does not consider pancreatic cancer as significant to its near-term financial outlook for NovoCure, it noted that discussions with key opinion leaders following PANOVA-3 data presentation at ASCO were positive.

These discussions suggest potential for material revenue from pancreatic cancer treatment beginning in 2027, according to Ladenburg Thalmann’s analysis.

In other recent news, NovoCure has reported significant advancements in its cancer treatments. The company achieved a major milestone with its Phase 3 PANOVA-3 trial, which demonstrated a statistically significant improvement in overall survival for patients with locally advanced, unresectable pancreatic cancer using Tumor Treating Fields (TTFields) therapy in combination with gemcitabine and nab-paclitaxel. The trial results also highlighted improvements in quality of life and pain management for patients. Additionally, NovoCure received CE Mark approval for Optune Lua, allowing its use in the European Union for treating metastatic non-small cell lung cancer (NSCLC) in combination with immune checkpoint inhibitors or docetaxel. This approval is supported by the Phase 3 LUNAR trial, which showed a meaningful extension in median overall survival for NSCLC patients. H.C. Wainwright has maintained its Buy rating on NovoCure, with a price target of $38, following these developments and noting the increased prescription and use of Optune Lua for NSCLC. The firm also adjusted its revenue estimate for NSCLC treatments to $10 million for 2025, up from $6 million, reflecting positive reimbursement processes and market potential. NovoCure’s recent progress suggests a growing acceptance and application of TTFields therapy across different cancer types.

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