The global oncology company NovoCure Ltd (NASDAQ: NVCR), which is focused on the development and commercialization of its innovative therapy, Tumor Treating Fields (TTFields), has been in the headlines lately. The company is striving to widen the survival of patients who have some of the most aggressive forms of cancer.
Notably, the company is working on, or has completed, clinical trials related to TTFields in brain metastases, non-small cell lung cancer, pancreatic cancer, ovarian cancer, liver cancer, gastric cancer, and glioblastoma. Over the past year, the company’s stock has skyrocketed around 230%.
Recently, Novocure revealed the final safety and efficacy results from its Phase 2 Pilot HEPANOVA trial, which evaluated the combination of its TTFields therapy with sorafenib for the treatment of advanced liver cancer. Per the report, the disease control rate was 76%, with an objective response rate of 9.5% in patients with poor prognosis and limited exposure to study treatments. Furthermore, patients who completed at least 12 weeks of TTFields treatment reflected a disease control rate of 91%, with an objective response rate of 18%.
Though investors expected better results, Novocure has planned to move on with a Phase 3 pivotal trial combining TTFields with standard treatments, including immunotherapy.
Post-HEPANOVA trial update, Mizuho Securities analyst Difei Yang shared his thoughts about the upcoming INNOVATE-3 Phase 3 readout, which is expected in 3Q21. The analyst commented that Novocure is likely to continue its clinical trial related to INNOVATE-3 at interim, unless stopped early either due to superiority or futility.
Yang noted that the Phase 2 INNOVATE trial, which studied TTFields in ovarian cancer, indicated positive results. Therefore, the INNOVATE-3 trial, which includes 540 individuals, is considering similar inclusion criteria, and is designed for detecting a 4-month improvement in overall survival (OS), he added.
Yang believes that similarly to the LUNAR trial (undergone for patients diagnosed with progression of non-small cell lung cancer), which continued at interim as it did not meet the bar for superiority, the INNOVATE-3 trial will have the same outcome at interim, in line with management expectations. (See Novocure stock chart on TipRanks)
Based on his assessments, the analyst maintained a Hold rating and a price target of $229 (19.6% upside potential) on Novocure.
In line with Yang’s stance, the Street’s consensus rating on the stock is also a Hold. That’s based on 2 Buys, 4 Holds, and 1 Sell. Looking ahead, the average Novocure price target stands at $205, putting the upside potential at about 7% over the next 12 months.
According to TipRanks’ Smart Score system, Novocure gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.
