Spain approves brain cancer treatment for public health system

MADRID - Spain’s Ministry of Health has approved Tumor Treating Fields (TTFields) therapy for inclusion in the Spanish National Health System (SNS) for adult patients with newly diagnosed glioblastoma, Novocure (NASDAQ:NVCR) announced Monday. The medical device company, currently valued at $1.38 billion, maintains a strong gross profit margin of 76.5% despite recent market challenges. According to InvestingPro analysis, the company holds more cash than debt on its balance sheet, positioning it well for continued expansion.

The decision makes the treatment available to eligible patients through qualified hospitals and health centers across Spain, expanding access to this therapy for one of the most aggressive forms of primary brain cancer.

TTFields are electric fields that disrupt cancer cell division and are administered through a wearable medical device. The therapy received CE Mark certification for the treatment of newly diagnosed and recurrent WHO Grade 4 Glioma in adults.

"The expanded coverage will help more patients benefit from TTFields therapy," said Alvaro Nunez, General Manager of Novocure Spain, in a press release statement.

With this approval, Spain joins several other countries where TTFields therapy is reimbursed, including Austria, France, Germany, Israel, Japan, Sweden, Switzerland and the United States. According to the company, more than 35,000 patients globally have been treated with TTFields. The company has demonstrated steady growth, with revenue increasing by 14.6% over the last twelve months. InvestingPro subscribers can access detailed analysis and 12+ additional key metrics about Novocure’s market position and growth trajectory in the comprehensive Pro Research Report.

Glioblastoma is characterized by limited treatment options, making new therapies particularly significant for patients. The Ministry of Health has established specific eligibility requirements that patients must meet to access the treatment through the public health system.

TTFields therapy works through multiple mechanisms that specifically target cancer cells while minimally affecting healthy cells due to their different properties, including division rate, morphology, and electrical characteristics.

Novocure, headquartered in Baar, Switzerland, focuses on developing and commercializing Tumor Treating Fields therapy for aggressive forms of cancer. Trading at $12.43, the stock currently sits near its 52-week low of $10.87, while InvestingPro’s Fair Value analysis suggests the stock may be undervalued, presenting a potential opportunity for investors seeking exposure to the medical device sector.

In other recent news, NovoCure has made significant strides in its cancer treatment endeavors. The company has submitted a premarket approval application to the U.S. Food and Drug Administration for its Tumor Treating Fields therapy aimed at treating locally advanced pancreatic cancer. This application is grounded in the results of the PANOVA-3 clinical trial, which showed promising outcomes when the therapy was used with gemcitabine and nab-paclitaxel chemotherapy. The trial, involving 571 participants, successfully met its primary endpoint by demonstrating a survival benefit over standard treatments.

Additionally, NovoCure’s stock has garnered positive attention from analysts. Ladenburg Thalmann initiated coverage with a Buy rating and a $30 price target, citing a positive outlook for the company’s Optune Gio treatment. H.C. Wainwright also maintained its Buy rating and set a $38 price target following the release of positive trial data. This firm emphasized the significance of NovoCure’s presentation at the American Society of Clinical Oncology event, which further confirmed the trial’s success. These developments underscore NovoCure’s ongoing efforts and potential in the medical field.

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