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NovoCure Ltd. (NVCR)
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NovoCure (NVCR) AI Stock Analysis

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NVCR

NovoCure

(NASDAQ:NVCR)

Rating:46Neutral
Price Target:
$11.00
▼(-3.76% Downside)
NovoCure's overall score reflects ongoing financial struggles and bearish technical indicators, despite promising clinical trial results and revenue growth in certain segments. Improving profitability and market adoption are key to enhancing its future outlook.
Positive Factors
Financial Performance
2Q25 revenues beat consensus estimates, primarily driven by active patient growth across major markets.
Regulatory Progress
The company noted a high likelihood of FDA approval for the PANOVA-3 Phase 3 trial, which could positively impact the company's product pipeline.
Negative Factors
Mixed Product Launch
The disclosed metrics on the early lung cancer launch were mixed.
Prescriber Engagement
The number of unique prescribers decreased to 75 in 2Q from 93 in 1Q25, indicating a reduction in the number of doctors prescribing the treatment.

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

NovoCure Business Overview & Revenue Model

Company DescriptionNovoCure (NVCR) is a global oncology company focused on developing and commercializing a novel therapy called Tumor Treating Fields (TTFields). These fields are electric fields that disrupt cancer cell division, serving as a non-invasive treatment for certain types of solid tumors. Operating within the healthcare sector, NovoCure aims to improve survival rates and quality of life for cancer patients through its innovative TTFields therapy, which is currently approved for use in treating glioblastoma and certain forms of lung cancer.
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:Jul 24, 2025
(Q2-2025)
|
% Change Since: -30.77%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
Novocure's earnings call highlighted significant clinical trial successes and ongoing growth in its GBM business, alongside the initial progress of its Optune Lua launch. However, challenges such as lower gross margins, a net loss, and slower than expected Optune Lua adoption were noted. The sentiment is cautiously optimistic, with clear potential for future growth once new indications are launched and reimbursement is established.
Q2-2025 Updates
Positive Updates
Positive PANOVA-3 Clinical Trial Results
The PANOVA-3 trial demonstrated that TTFields therapy extended median overall survival by 2 months in pancreatic cancer patients, with even greater benefits in the modified intent-to-treat population. The trial also showed significant improvements in pain-free survival and quality of life.
METIS Trial Success
The METIS trial met its primary endpoint, showing a statistically significant 28% risk reduction in time to intracranial progression for patients with brain metastases from non-small cell lung cancer treated with TTFields therapy.
Growth in GBM Business
Novocure reported a 7% year-over-year increase in Optune Gio patients, with double-digit growth in international markets such as Germany, France, and Japan.
Optune Lua Launch Progress
The Optune Lua launch in non-small cell lung cancer received 121 prescriptions in Q2, and recognized $2.4 million in net revenues, including $1.1 million from non-small cell lung cancer.
Strong Financial Position
Net revenues increased by 6% year-over-year to $159 million, with a cash and investment balance of $912 million, allowing for the retirement of $560 million in convertible notes due later this year.
Negative Updates
Lower Gross Margin
Gross margin decreased to 74% from 77% in Q2 2024, primarily due to the rollout of the HFE array and non-small cell lung cancer launch expenses without established reimbursement.
Ongoing Net Loss
The company reported a net loss of $40 million for the quarter, with a negative adjusted EBITDA of $10 million.
Slower Than Expected Optune Lua Adoption
The number of prescribers for Optune Lua decreased in Q2, with U.S. prescriptions increasing by only 14 sequentially, indicating a slower ramp-up than anticipated.
Company Guidance
During the call, Novocure provided guidance on several key metrics and strategic initiatives for the second quarter of 2025. The company reported net revenues of $159 million, reflecting a 6% increase year-over-year, driven primarily by a 7% growth in their GBM franchise, with notable double-digit growth in international markets. Novocure's adjusted EBITDA was negative $10 million, while they ended the quarter with a cash and investment balance of $912 million. The company highlighted the progress of their Tumor Treating Fields therapy, with positive results from the PANOVA-3 trial in pancreatic cancer showing a median overall survival of 16.2 months, 2 months greater than the control group, and a significant improvement in pain-free survival. Additionally, the METIS trial demonstrated a 28% risk reduction in intracranial progression for brain metastases from non-small cell lung cancer. Novocure is working on FDA PMA submissions for both PANOVA-3 and METIS, with potential approvals expected in 2026. The company has made strides in commercializing Optune Lua for non-small cell lung cancer, with 121 prescriptions in Q2 and $2.4 million in net revenues. They aim to build upon their financial strength and clinical successes to drive further growth and profitability.

NovoCure Financial Statement Overview

Summary
NovoCure faces profitability challenges despite modest revenue growth, with high operational costs eroding profits. The balance sheet is stable with a solid equity base, but cash flow issues are concerning.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue605.22M509.34M537.84M535.03M494.37M
Gross Profit468.04M381.06M422.97M420.15M387.87M
EBITDA-108.26M-175.87M-63.11M-38.38M45.30M
Net Income-168.63M-207.04M-92.53M-58.35M19.81M
Balance Sheet
Total Assets1.24B1.15B1.19B1.14B1.05B
Cash, Cash Equivalents and Short-Term Investments962.20M910.62M969.42M937.70M842.58M
Total Debt683.35M596.24M584.27M575.21M444.20M
Total Liabilities880.61M783.63M750.48M729.00M575.46M
Stockholders Equity360.18M362.50M441.17M410.49M476.53M
Cash Flow
Free Cash Flow-69.22M-100.43M9.43M58.59M84.18M
Operating Cash Flow-26.37M-73.34M30.79M82.76M99.15M
Investing Cash Flow-140.24M184.15M-139.96M-144.83M-472.85M
Financing Cash Flow90.31M15.79M15.49M25.70M440.21M

NovoCure Technical Analysis

Technical Analysis Sentiment
Negative
Last Price11.43
Price Trends
50DMA
16.39
Negative
100DMA
17.08
Negative
200DMA
20.04
Negative
Market Momentum
MACD
-1.63
Positive
RSI
28.09
Positive
STOCH
10.35
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 11.43 is below the 20-day moving average (MA) of 14.54, below the 50-day MA of 16.39, and below the 200-day MA of 20.04, indicating a bearish trend. The MACD of -1.63 indicates Positive momentum. The RSI at 28.09 is Positive, neither overbought nor oversold. The STOCH value of 10.35 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
$1.87B-7.85%16.28%10.63%
63
Neutral
$1.34B55.81-19.14%-14.44%-557.38%
59
Neutral
$991.62M-3.29%-23.12%97.46%
51
Neutral
$7.39B0.42-62.86%2.37%15.61%-1.95%
50
Neutral
$1.60B-14.80%-3.04%76.48%
46
Neutral
$1.28B-48.07%14.58%0.86%
44
Neutral
$217.93M-28.58%34.65%-128.56%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVCR
NovoCure
11.43
-7.86
-40.75%
ATRC
Atricure
37.54
16.05
74.69%
QDEL
QuidelOrtho
23.68
-17.72
-42.80%
STAA
Staar Surgical
27.02
-13.34
-33.05%
BLFS
BioLife Solutions
20.73
-2.01
-8.84%
SMTI
Sanara MedTech
24.52
-3.38
-12.11%

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.

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: Jul 30, 2025