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NovoCure Ltd (NVCR)
NASDAQ:NVCR

NovoCure (NVCR) AI Stock Analysis

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NovoCure

(NASDAQ:NVCR)

Rating:50Neutral
Price Target:
$17.50
▲(2.94%Upside)
NovoCure's overall stock score reflects its financial challenges and valuation concerns, despite positive strategic developments. The company's efforts in expanding its market presence and promising clinical outcomes are promising but need to translate into improved financial performance to enhance its stock outlook.
Positive Factors
Clinical Trial Results
The PANOVA-3 study met its primary endpoint of overall survival, which was viewed as an unexpected positive for the stock.
Market Performance
NVCR reported total 1Q25 revenues of $155.0M, above consensus estimates of $146.9M, primarily attributed to active patient growth across major markets and reimbursement improvements.
Regulatory Prospects
The planned regulatory submissions for TTFields in locally advanced pancreatic cancer and non-small-cell lung cancer brain metastases could enhance the company's growth prospects.
Negative Factors
Regulatory and Approval Challenges
The 2-month overall survival benefit is considered modest but sufficient for FDA approval, supporting the inclusion of TTF as a treatment option for patients.
Regulatory and Tariff Impact
Management shared their expectation on the potential impact of recent global tariff changes, projecting an increase in import duties of up to $8-11M in 2025.

NovoCure (NVCR) vs. SPDR S&P 500 ETF (SPY)

NovoCure Business Overview & Revenue Model

Company DescriptionNovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Europe, the Middle East, Africa, Japan, and Greater China. Its TTFields devices include Optune for the treatment of glioblastoma; and Optune Lua for the treatment of malignant pleural mesothelioma. The company also has ongoing or completed clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer. NovoCure Limited was incorporated in 2000 and is headquartered in Saint Helier, Jersey.
How the Company Makes MoneyNovoCure generates revenue primarily through the sale and distribution of its Tumor Treating Fields (TTFields) therapy devices. The company makes money by providing these devices to healthcare providers and hospitals, who then use them to treat patients with approved indications such as glioblastoma and malignant pleural mesothelioma. NovoCure's revenue model is heavily dependent on reimbursement from health insurance providers and government health programs, as these cover the cost of TTFields therapy for patients. Additionally, NovoCure engages in clinical trials and collaborations with research institutions to expand the application of TTFields to other cancer types, which could potentially increase future revenue streams. The company may also benefit from partnerships with pharmaceutical companies aimed at combining TTFields with other cancer therapies, further driving revenue growth.

NovoCure Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: -4.33%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted NovoCure Limited's successful expansion efforts with CE Mark approval in Europe and promising clinical trial results, which are overshadowed by financial losses and margin pressures. The company's strategic focus on expanding indications shows potential for growth, but current financial challenges are notable.
Q1-2025 Updates
Positive Updates
CE Mark Approval for OptuneLua
OptuneLua received European CE Mark approval for metastatic non-small cell lung cancer, allowing for concomitant treatment with immune checkpoint inhibitors or docetaxel. This approval opens up the European market, with Germany being launch-ready pending local registration.
Panova Three Clinical Trial Success
The Panova three phase three clinical trial in unresectable locally advanced pancreatic cancer demonstrated a meaningful survival benefit and was accepted for presentation at the ASCO annual meeting. This trial is the first and only phase three trial to show such a benefit in this cancer type.
Strong Financial Performance
NovoCure Limited reported $155 million in net revenue for Q1 2025, a 12% increase year-over-year. Active patients grew by 40% in France, 17% in Japan, 10% in Germany, and 4% in the US.
Non-Small Cell Lung Cancer Launch Success
The early commercial indicators for the US launch of OptuneLua for non-small cell lung cancer are promising, with 92 prescriptions and 62 patients on therapy in Q1 2025.
Expansion of Active Patient Base
The GBM segment showed strong performance with a record 4,162 active patients globally, highlighting continued growth especially in France and Japan.
Negative Updates
Gross Margin Decline
Gross margin for the quarter was 75%, down from 76% in the prior year period, due to the rollout of HFE arrays and the NACOC launch treating unlabeled patients before establishing broad reimbursement.
Tariff Uncertainty
Potential tariff changes could impact 2025 cost of goods by up to $11 million if tariffs return to increased rates, adding financial pressure.
Net Loss in Q1 2025
NovoCure Limited reported a net loss of $34 million for the quarter with a loss per share of $0.31, reflecting investment in growth and new product launches.
Company Guidance
In NovoCure Limited's first quarter 2025 earnings call, several key metrics highlighted the company's momentum and strategic focus. The quarter saw a net revenue of $155 million, marking a 12% increase from the previous year, driven by a 40% patient growth in France and other regions. The company reported 92 prescriptions for non-small cell lung cancer, with 62 patients on therapy by the end of the quarter, alongside 44 mesothelioma patients, totaling 106 Optima active patients. NovoCure also celebrated the CE Mark approval for OptuneLua in Europe, positioning them for a launch in Germany. Additionally, the company managed to collect $1.5 million from OptuneLua claims, reflecting initial reimbursement efforts. Their adjusted EBITDA was negative $5 million, while they maintained a robust cash and investment balance of $929 million. Despite a quarterly net loss of $34 million, NovoCure remains focused on expanding its reach across multiple indications, leveraging its infrastructure for anticipated future growth and profitability.

NovoCure Financial Statement Overview

Summary
NovoCure has shown modest revenue growth but faces significant profitability challenges, with negative net profit and EBIT margins. The balance sheet is stable with a solid equity base, though cash flow issues are a pressing concern.
Income Statement
45
Neutral
NovoCure has shown a modest increase in revenue over the TTM period, with a revenue growth rate of 2.72%. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins of -26.41% and -26.84% respectively. The gross profit margin is relatively healthy at 77.16%, suggesting strong core operations but high operational costs are eroding profitability.
Balance Sheet
50
Neutral
The balance sheet presents a mixed picture. NovoCure has a relatively high debt-to-equity ratio of 0.25, indicating moderate leverage. The return on equity is negative due to the net loss, but the equity ratio is a healthy 59.98%, indicating a stable capital structure with sufficient equity backing.
Cash Flow
40
Negative
Cash flow is a concern for NovoCure, with negative free cash flow of -$72.14 million and deterioration in free cash flow growth. The operating cash flow to net income ratio is negative, reflecting challenges in converting profits into cash. The company appears to be burning cash, which poses a risk if not addressed.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue621.71M605.22M509.34M537.84M535.03M494.37M
Gross Profit479.70M468.04M381.06M422.97M420.15M387.87M
EBITDA-105.45M-108.26M-175.87M-63.11M-38.38M45.30M
Net Income-164.19M-168.63M-207.04M-92.53M-58.35M19.81M
Balance Sheet
Total Assets370.25M1.24B1.15B1.19B1.14B1.05B
Cash, Cash Equivalents and Short-Term Investments256.60M962.20M910.62M969.42M937.70M842.58M
Total Debt160.32M683.35M596.24M584.27M575.21M444.20M
Total Liabilities243.86M880.61M783.63M750.48M729.00M575.46M
Stockholders Equity126.39M360.18M362.50M441.17M410.49M476.53M
Cash Flow
Free Cash Flow-72.14M-69.22M-100.43M9.43M58.59M84.18M
Operating Cash Flow-30.46M-26.37M-73.34M30.79M82.76M99.15M
Investing Cash Flow-392.93M-140.24M184.15M-139.96M-144.83M-472.85M
Financing Cash Flow95.35M90.31M15.79M15.49M25.70M440.21M

NovoCure Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.00
Price Trends
50DMA
17.52
Negative
100DMA
18.82
Negative
200DMA
20.17
Negative
Market Momentum
MACD
-0.25
Positive
RSI
46.18
Neutral
STOCH
19.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVCR, the sentiment is Negative. The current price of 17 is below the 20-day moving average (MA) of 17.61, below the 50-day MA of 17.52, and below the 200-day MA of 20.17, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 19.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVCR.

NovoCure Risk Analysis

NovoCure disclosed 41 risk factors in its most recent earnings report. NovoCure reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

NovoCure Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$1.55B-8.38%15.79%-1.20%
56
Neutral
$1.04B-3.29%-23.12%97.46%
54
Neutral
$809.26M55.81-19.14%-14.44%-557.38%
52
Neutral
$1.90B-10.59%-3.18%81.18%
51
Neutral
$7.36B0.28-61.07%2.37%17.46%1.71%
50
Neutral
$1.86B-45.52%18.27%16.28%
44
Neutral
$247.26M-28.58%34.65%-128.56%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVCR
NovoCure
17.00
-1.04
-5.76%
ATRC
Atricure
32.74
11.46
53.85%
QDEL
QuidelOrtho
28.67
-4.23
-12.86%
STAA
Staar Surgical
17.18
-25.14
-59.40%
BLFS
BioLife Solutions
21.80
0.44
2.06%
SMTI
Sanara MedTech
28.47
0.29
1.03%

NovoCure Corporate Events

Executive/Board ChangesShareholder Meetings
NovoCure Appoints New President at Annual Meeting
Neutral
Jun 6, 2025

On June 4, 2025, NovoCure held its annual general meeting where shareholders elected eleven directors to serve until the 2026 meeting, with no third-party arrangements involved. Additionally, Francis Leonard was appointed as President of NovoCure and awarded Restricted Share Units under the company’s incentive plan. The meeting also saw the approval of several proposals, including the ratification of the company’s independent auditor, a non-binding advisory vote on executive compensation, and the approval of the 2025 Employee Share Purchase Plan.

The most recent analyst rating on (NVCR) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on NovoCure stock, see the NVCR Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
NovoCure Announces Positive Phase 3 Trial Results
Positive
Jun 2, 2025

On May 31, 2025, Novocure announced positive results from its Phase 3 PANOVA-3 clinical trial at the ASCO Annual Meeting, demonstrating that TTFields therapy, when combined with gemcitabine and nab-paclitaxel, significantly improves overall survival and extends pain-free survival for patients with unresectable, locally advanced pancreatic adenocarcinoma. The findings, which will support a Premarket Approval submission to the FDA, highlight TTFields’ potential to become a standard treatment for this challenging cancer type, marking a significant advancement in Novocure’s market positioning and offering hope for improved patient outcomes.

The most recent analyst rating on (NVCR) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on NovoCure stock, see the NVCR Stock Forecast page.

Product-Related Announcements
NovoCure’s Optune Lua Gains CE Mark Approval
Positive
Apr 22, 2025

On April 22, 2025, Novocure announced that its Optune Lua® device received CE Mark approval for treating adult patients with metastatic non-small cell lung cancer (mNSCLC) in conjunction with immune checkpoint inhibitors or docetaxel, following progression on a platinum-based regimen. This approval, supported by the Phase 3 LUNAR trial, marks a significant milestone for Novocure, as Optune Lua demonstrated a substantial improvement in median overall survival for this patient group, offering a promising new treatment option with minimal systemic toxicity. Novocure is preparing to launch Optune Lua in Germany, following local registration requirements, and will conduct a post-market study to further assess its effectiveness.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 14, 2025