Novocure Stock Soars On Positive Pancreatic Cancer Trial Results, Retail Sentiment Surges
By Stocktwits Inc | First Published Dec 3, 2024, 1:14 AM ISTThe trial met its primary endpoint, showing a statistically significant improvement in median overall survival.
Shares of Novocure Ltd. skyrocketed over 55% on Monday afternoon, reaching levels last seen in August 2023, as the company announced promising Phase 3 trial results for its Tumor Treating Fields (TTFields) therapy.
Trading volume surged to more than seven times the daily average, underscoring heightened investor interest.
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The pivotal PANOVA-3 trial, conducted jointly by Novocure and Zai Lab, evaluated TTFields therapy in combination with gemcitabine and nab-paclitaxel as a first-line treatment for unresectable, locally advanced pancreatic adenocarcinoma.
The trial met its primary endpoint, showing a statistically significant improvement in median overall survival (mOS).
Patients receiving TTFields alongside the standard chemotherapy regimen achieved an mOS of 16.2 months, compared to 14.2 months for those treated with chemotherapy alone, marking a two-month survival advantage.
Additionally, TTFields demonstrated a 33% improvement in the survival rate at 24 months, with the therapy being well-tolerated and exhibiting a consistent safety profile.
TTFields therapy, an FDA-approved treatment designed to disrupt cancer cell division using electric fields, is already under investigation for multiple cancer types, including glioblastoma and mesothelioma.
Novocure plans to seek regulatory approval for TTFields in pancreatic cancer based on the PANOVA-3 data and aims to present the findings at an upcoming medical congress.
Zai Lab intends to file for regulatory approval in China.
Retail investors reacted enthusiastically on Stocktwits, propelling sentiment for Novocure to ‘extremely bullish’ as message volumes soared.
Wall Street analysts also took notice. H.C. Wainwright raised its price target on Novocure to $38 from $30, highlighting the significant market opportunity in pancreatic cancer and projecting global peak sales of $1.7 billion by 2037.
Leerink lifted its target to $33 from $28, citing the potential revenue upside from TTFields indications in non-small cell lung cancer and glioblastoma.
Ahead of the trial readout on Monday, Evercore ISI upgraded Novocure to ‘Outperform’ from ‘In Line’ and raised the price target to $30 from $18. The brokerage said if it were to assume about 50% probability for success, it would lead to peak revenue of greater than $500 million and about 30% penetration, with about 50% upside to NVCR shares in a base case.
Looking ahead, Novocure is continuing its exploration of TTFields in metastatic pancreatic cancer through the ongoing PANOVA-4 Phase 2 trial. The study, which combines TTFields with atezolizumab, gemcitabine, and nab-paclitaxel, has completed enrollment, with data expected in 2026.
Novocure’s shares have gained over 115% year-to-date, positioning the company for renewed momentum in the biotech sector.
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