CEO Buys Beaten Up Med-Tech into Pivotal 2022 for Clinical Data
NovoCure (NVCR) is a fallen angel with shares -47% YTD and on 11/29 a filing showed the CEO stepped in to buy $509,539 of stock at $102.44/share increasing his ownership by 60%. NVCR shares traded above $220 in June and have been lower the last five months but at an interesting spot retesting the September 2020 major flag breakout that started the parabolic run higher. NVCR is a global oncology company with a proprietary platform technology called Tumor Treating Fields which are electric fields tuned to specific frequencies that disrupt cancer cell division. Its commercial TTFields delivery systems are Optune and Optune Lua. Optune is approved by the FDA for the treatment of adult patients with newly diagnosed gioblastoma in combination with temozolomide, a chemotherapy drug, and for adult patients with GBM following confirmed recurrence after chemotherapy as monotherapy treatment. Optune Lua is approved by the FDA under the Humanitarian Device Exemption pathway to treat malignant pleural mesothelioma in combination with standard chemotherapies. NVCR will have final data in 2022 across various indications and programs. NVCR has a market cap of $9.93B and trades 15.5X FY22 EV/Sales with revenues rising 40.7% in 2020, 9.2% in 2021 and seen rising 9% in 2022. Piper lowered its target to $180 in October noting three straight quarters missing estimates and clinical milestone timing delays but potential remains to meaningfully expand the addressable patient population.