Please ensure Javascript is enabled for purposes of website accessibility

Why Novocure Stock Skyrocketed Today

By Joe Tenebruso - Apr 13, 2021 at 5:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The oncology specialist's investigational cancer treatment could be a game-changer.

What happened

Shares of Novocure (NVCR -3.56%) soared nearly 50% on Tuesday after the oncology company provided an update on a phase 3 trial of its experimental lung cancer treatment.

So what

An independent data monitoring committee (DMC) informed Novocure that an interim analysis for the study would be accelerated after data from 210 patients showed no evidence of increased systemic toxicity.

Moreover, the DMC said it was likely "unnecessary and possibly unethical" to enroll the prior target number of patients into the control group and recommended a reduced timeline for the clinical trial.

A person is drawing an upwardly sloping line.

Novocure's stock price surged on Tuesday. Image source: Getty Images.

The study is designed to evaluate Novocure's Tumor Treating Fields, or TTFields, which are electric fields that could potentially disrupt cancer cell division while leaving healthy cells largely unaffected. The trial's primary endpoint is superior overall survival among patients who are treated with TTFields in combination with immune checkpoint inhibitors or docetaxel -- two commonly used lung cancer treatments -- versus these treatments alone.

"We are very pleased with the DMC recommendations, which we believe support the potential for TTFields to make a significant difference in treatment outcomes for patients with non-small cell lung cancer, whether used together with immune checkpoint inhibitors or docetaxel," Novocure Executive Chairman William Doyle said in a press release. "The accelerated interim analysis with an encouraging outcome adds to the accumulating evidence of Tumor Treating Fields' broad potential across a range of hard-to-treat cancers."

Now what 

Roughly 193,000 people are diagnosed with non-small cell lung cancer each year in the U.S. alone. If TTFields can help to improve healthcare outcomes for these patients, Novocure could see tremendous demand for its lung cancer treatments. Investors know this, which is why they bid up Novocure's stock price so sharply today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NovoCure Stock Quote
NovoCure
NVCR
$72.03 (-3.56%) $-2.66

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.