Novocure Surpasses Q2 Revenue Expectations, Achieving Strong Growth

Novocure (NVCR) reported Q2 revenue of $158.81mln, surpassing expectations. The company achieved significant growth in glioblastoma and non-small cell lung cancer divisions. CEO Ashley Cordova emphasized the advancement of Tumor Treating Fields therapy to new patient groups. Analysts forecast an average target price of $32.43, implying a 96.42% upside from the current price. The average brokerage recommendation is 2.0, indicating "Outperform" status.

Novocure (NVCR) has reported its second-quarter (Q2) 2025 financial results, showcasing significant revenue growth and advancements in its Tumor Treating Fields (TTFields) therapy. The company reported total net revenues of $158.8 million, a 6% increase year-over-year (YoY), exceeding market expectations. This growth was primarily driven by active patient growth across major markets, particularly in the U.S., Germany, France, and Japan.

Ashley Cordova, CEO of Novocure, highlighted the company's progress in expanding its glioblastoma and non-small cell lung cancer (NSCLC) businesses. The company also made strides in bringing its innovative TTFields therapy to new patient populations. Novocure's Optune Lua® product, which treats glioblastoma, saw a 1% decrease in prescriptions, while Optune Gio®, which treats NSCLC, saw a 7% increase in active patients.

The company's gross margin for the quarter was 74%, down from 77% in the prior year. This reduction was primarily attributed to the rollout of the Head Flexible Electrode (HFE) transducer array for Optune Gio®, increased tariffs, and the treatment of on-label patients at risk prior to establishing broad reimbursement. Research and development expenses increased by 2% to $55.8 million, driven by higher direct clinical trial expenses related to the ramp of the LUNAR-2 and KEYNOTE D58 trials. Sales and marketing expenses increased by 1% to $57.1 million, reflecting higher costs associated with the expansion of the NSCLC sales force.

Novocure's Q2 results include the presentation of the Phase 3 PANOVA-3 clinical trial at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting and the European Society for Medical Oncology (ESMO) Gastrointestinal Cancers Congress 2025. The PANOVA-3 trial met its primary endpoint, demonstrating a statistically significant extension in overall survival and pain-free survival for patients treated with TTFields therapy combined with gemcitabine and nab-paclitaxel compared to gemcitabine and nab-paclitaxel alone. The company also presented final quality of life data from the PANOVA-3 trial at the ESMO Gastrointestinal Cancers Congress 2025, showing a statistically significant benefit across multiple quality of life measures for patients with unresectable, locally advanced pancreatic adenocarcinoma.

Analysts forecast an average target price of $32.43 for Novocure, indicating a 96.42% upside from the current price. The average brokerage recommendation is 2.0, indicating an "Outperform" status.

References:
[1] https://www.biospace.com/press-releases/novocure-reports-second-quarter-2025-financial-results