Novocure stock catapulted early Monday after the company's cancer-treating device succeeded in a study of patients with pancreatic cancer.
The device, known as tumor-treating fields, is a wearable patch that delivers electric fields to the body. These fields kill tumor cells.
After a year of treatment with tumor-treating fields and a two-drug cocktail, patients lived for a median of 16.2 months compared to 14.16 months for those who only received the drugs. That's a 13% improvement in overall survival. By two years, the improvement stretched to 33%.
Novocure stock launched 49% to 29.85. Shares opened at their highest point since August 2023.
Novocure Plans Approval, Launch
But analysts were split on what the news means for Novocure stock.
Novocure is now planning to ask regulators in the U.S., Japan and other market to approve tumor-treating fields and the two-drug combination for patients with locally advanced pancreatic cancer that can't be surgically removed.
Evercore ISI analyst Vijay Kumar raised his price target on Novocure stock to 34 from 30, and kept his outperform rating. He noted Novocure is planning to launch tumor-treating fields in the U.S. next year for patients with metastatic lung cancer. The pancreatic cancer launch could follow in 2026.
"Our analysis does not include EU or China (revenue opportunity) … which should provide further upside to shares over time and sets it up for a very interesting next two years," he said in a report.
Wedbush analyst David Nierengarten, on the other hand, says the results aren't strong enough to give Novocure an edge in market share. Overall, the device and two-drug regimen reduced the risk of death by 18%, he said in a client note.
But another study showed the same two-drug combination helped patients live for a median of 17.1 months — longer than the 16.2 months in Novocure's study.
"Without further details, we do not see the data as being strong enough to support broad uptake," he said.
Still, Nierengarten boosted his price target on Novocure stock to 29 from 24. He rates shares neutral.
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