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1. Company Snapshot

1.a. Company Description

NovoCure 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.

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1.b. Last Insights on NVCR

NovoCure's recent performance was negatively impacted by a quarterly loss of $0.36 per share, surpassing the Zacks Consensus Estimate of a loss of $0.39. This compares to a loss of $0.31 per share a year ago, indicating a widening gap in profitability. The company's revenue growth of 6% year-over-year, while beating analyst estimates, was not enough to offset the losses. Additionally, the recent earnings release highlighted a decline in the company's stock price, which may be attributed to the disappointing financial results.

1.c. Company Highlights

2. Novocure's Q3 2025 Earnings: A Mixed Bag

Novocure's financial performance in Q3 2025 was marked by an 8% year-over-year increase in net revenues to $167 million, primarily driven by a 5% growth in active GBM patients. The company's adjusted EBITDA loss narrowed to $3 million, beating internal expectations. EPS loss per share was $0.33, better than the estimated loss of $0.42. Gross margin is expected to improve to the mid-70s driven by the rollout of the HFE array and launches in lung cancer.

Publication Date: Nov -25

📋 Highlights
  • GBM Patient Growth:: Active patients reached 4,277, up 5% YoY, with 9 consecutive quarters of 5-12% growth.
  • Lung Cancer Launch Delay:: Only 100 active patients (94 in the U.S.), below expectations, with sequential prescription declines reported.
  • Financial Performance:: Q3 revenue hit $167 million (+8% YoY), but net loss was $37M, with adjusted EBITDA at -$3M despite cost control measures.
  • Pancreatic & Brain Metastases Progress:: PANOVA-3 data submitted to FDA (approval expected mid-2026), METIS PMA filing by year-end 2025 (decision H2 2026).
  • 2027 Profitability Goal:: Targeting $700–750M revenue and adjusted EBITDA breakeven, driven by new indications and mid-70s gross margin improvements.

Segment Performance

The GBM business remained solid with 4,277 patients on therapy, the largest patient count to date. However, the non-small cell lung cancer launch was slower than expected, with 100 patients on therapy, 94 in the U.S. and 6 in Germany. The company is refining its approach to tackle this, including highlighting specific patient profiles where Optune Lua provides the best benefit. As Frank Leonard noted, the company still sees long-term value in helping non-small cell lung cancer patients, especially in the second-line treatment.

Pipeline Progress

Novocure made progress in pancreatic cancer and brain metastases, presenting PANOVA-3 results at ASCO and final data from the Phase III METIS trial at ASTRO. The company expects to file the full PMA submission for brain metastases by year-end 2025 and anticipates a 9-12 month review with the final decision in the second half of 2026.

Valuation and Outlook

With a P/S Ratio of 2.18 and an EV/EBITDA of -17.27, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 5.7%. Given the company's commitment to breaking even on an adjusted EBITDA basis in 2027 and expected revenue contribution from new indications, the current valuation may be justified. However, investors should closely monitor the company's progress in launching new indications and improving its financial performance.

Future Expectations

Novocure expects to launch its pancreatic cancer and brain metastases indications by leveraging its existing sales forces and infrastructure. The company is also committed to becoming a true platform therapy company with four indications expected in the market by year-end 2026. With a focus on profitability, Novocure expects to reach a revenue level of $700 million to $750 million by 2027 and be on a sustainable basis.

3. NewsRoom

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Edgestream Partners L.P. Increases Holdings in NovoCure Limited $NVCR

Dec -04

Source: defenseworld.net

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NovoCure Limited $NVCR Shares Purchased by American Century Companies Inc.

Dec -03

Source: defenseworld.net

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Novocure Appoints Company President Frank Leonard as Chief Executive Officer

Dec -01

Source: businesswire.com

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Novocure to Participate in 37th Annual Piper Sandler Healthcare Conference

Nov -26

Source: businesswire.com

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2 Healthcare Stocks for Individual Investors With a 40-Year Time Horizon

Nov -12

Source: fool.com

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Novocure to Participate in 2025 Jefferies Global Healthcare Conference

Nov -12

Source: businesswire.com

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NovoCure Limited (NVCR) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Compared to Estimates, NovoCure (NVCR) Q3 Earnings: A Look at Key Metrics

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Tumor Treating Fields

Expected Growth: 10%

NovoCure's Tumor Treating Fields (TTFields) growth is driven by increasing adoption in glioblastoma treatment, expansion into new indications such as lung and pancreatic cancer, and growing awareness of TTFields' efficacy and safety profile. Additionally, strategic partnerships, investments in clinical trials, and geographic expansion into new markets contribute to the 10% growth rate.

7. Detailed Products

Optune

A portable, non-invasive device that delivers Tumor Treating Fields (TTFields) to adult glioblastoma patients.

Optune Lua

A wearable, portable device that delivers TTFields to mesothelioma patients.

NovoTTF-100L

A device that delivers TTFields to non-small cell lung cancer (NSCLC) patients.

8. NovoCure Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

NovoCure's proprietary Tumor Treating Fields (TTFields) technology provides a unique treatment option for cancer patients, reducing the threat of substitutes.

Bargaining Power Of Customers

NovoCure's customers, primarily oncologists and cancer patients, have limited bargaining power due to the company's innovative technology and limited competition.

Bargaining Power Of Suppliers

NovoCure's suppliers, primarily manufacturers of electronic components, have limited bargaining power due to the company's specialized requirements and limited supplier base.

Threat Of New Entrants

The high barriers to entry in the medical device industry, including regulatory hurdles and significant R&D investments, reduce the threat of new entrants.

Intensity Of Rivalry

While NovoCure faces competition from other cancer treatment options, its proprietary technology and growing market share reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.26%
Debt Cost 3.95%
Equity Weight 34.74%
Equity Cost 6.40%
WACC 4.80%
Leverage 187.85%

11. Quality Control: NovoCure Limited passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Stevanato

A-Score: 4.0/10

Value: 3.1

Growth: 5.6

Quality: 5.5

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Tecan

A-Score: 3.6/10

Value: 4.4

Growth: 4.1

Quality: 5.7

Yield: 2.5

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Gerresheimer

A-Score: 3.3/10

Value: 8.8

Growth: 4.6

Quality: 4.1

Yield: 1.2

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Carl Zeiss Meditec

A-Score: 3.3/10

Value: 3.9

Growth: 5.0

Quality: 5.9

Yield: 1.9

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
NovoCure

A-Score: 2.8/10

Value: 7.2

Growth: 3.0

Quality: 3.6

Yield: 0.0

Momentum: 2.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Sartorius

A-Score: 2.7/10

Value: 1.3

Growth: 5.3

Quality: 3.4

Yield: 0.0

Momentum: 3.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.11$

Current Price

12.11$

Potential

-0.00%

Expected Cash-Flows