Novocure shares have declined significantly this year, partly due to permanent net loss.
However, the company is making great clinical and regulatory progress.
Although there are certain risks, stocks may increase due to significant catalysts.
10 shares we like more than Novocure ›
It was a difficult year Novocure(NASDAQ: NVCR)Oncology focused on biotechnology. Since the beginning of January, the shares decreased by 35%. Although market problems are probably not helping, Novocure is mostly guilty of the results of its year. Her shares decreased after the disappointing fourth quarter update.
However, stocks can have a big impact. According to Yahoo! Finance. This means that it can jump almost 70% of the current level. Should investors be as boned as Novocure Street?
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Novocure is developing and selling portable devices emitting electric fields known as tumor treatment fields (TTFields), which inhibit cancer cell growth. These devices do not necessarily change traditional treatments; They are often used with them (although in some cases it can be a separate treatment). This innovative approach to one of the main causes of death around the world has been successful.
Novocure’s market for two devices: Optune Gio, cleaned of the treatment of aggressive brain cancer called glioblastoma, and “Optune Lua” confirmed by both metastatic non -molar cell lung cancer (NSCLC) and malignant mesothelioma, cancer. Higher adoption of these devices in markets where they are available helps improve Novocure’s financial results. In the first quarter, the company’s revenue increased by 12% per year to $ 155 million. USD.
It contained 4,268 active patients with therapy from the end of the period, increasing 11%compared to the year. However, Novocure remains unprofitable; Its net loss per campaign in the first quarter was $ 0.31. True, it was better than $ 0.36, reported per year. However, depending on the uncertain environment and the constant volatility of the market, investors can currently have high bias for well -established, profitable promotions.
Thus, Novocure shares can remain a bit restless. However, recent changes could help the company change things and reconcile street ratings.
Novocure has reached several clinical and regulatory stages in the last six months. April It received the permission of the European Optuno LuA European authority to treat NSCLC metastatic metastatic. Novocure estimates that more than 400,000 patients are diagnosed each year on the NSCLC continent. Although its device will only be directed to a small part of this amount, the wish of the regulation significantly expands its market address.
Optune Lua has been approved by the US NSCLC only since October. The US receives about 30,000 patients from the 193,000 annual NSCLC diagnosis. In this niche Novocure still has a huge white space – as many as 5,000 patients alone would be a huge achievement of the company alone.
Meanwhile, in December, she announced the positive results of a phase 3 clinical trial for its TTFields, immeasurably, locally advanced pancreatic adenocarcinoma. This was the first time any treatment has shown the survival of statistically significant patients with this type of pancreatic cancer, which is most often unavailable to current care standards. Its survival is only 13%for five years, and its deaths are increasing even when they decrease due to most other cancers. Novocure evaluates 67,000 annual diagnoses in the US, so there is a great dissatisfied need.
The company seems to ensure another important approval here and will continue to seek progress in this area. However, the shares are still significantly reduced over the years, although they have jumped after the latest changes, including the approval of the NSCLC in Europe. Who gives? Novocure’s wonderful net loss remains concerns.
However, if you want to look at those and slightly increased risks they increase in stock, Novocure can be a great pickup at the current level. While waiting for cash cancer confirmation and firm NSCLC progress, income can increase fundamentally and allow a health care professional to earn profits.
Wall Street analysts can be something here. But if you follow their example, it is necessary to start with a low stock position and add more only once (or if), it continues to show good progress.
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Prosper Junior Bakiny has no position in any of the above shares. Motley fool is a position and recommends Novocure. The Motley fool has a disclosure policy.
According to Wall Street, this year has fallen by 35 percent.
