Why Novocure Ltd (NVCR) Stock Just Popped 50%

Small-cap oncology firm Novocure Ltd (NASDAQ:NVCR) is up roughly 50% in a single shot Monday amid positive news from a medical trial.

Why Novocure Ltd (NVCR) Stock Just Popped 50%Specifically, the company’s Optune device — which is intended to treat adults with histologically confirmed glioblastoma multiforme (GBM), the most common form of primary brain cancer — performed well alongside standard temozolomide chemotherapy in a phase 3 EF-14 trial. The company’s treatment boasts “a consistent and maintained improvement in overall survival at two, three, four and five years” across data from 695 patients.

At the endpoints, the two-year survival rate improved from 30% to 43% in patients who received both Optune and temozoloide versus those treated with just standard chemotherapy. The five-year survival rate jumped from 5% to 13%.

“When I started treating patients with GBM 20 years ago, the majority of patients died within less than one year and long-term survival was nearly absent,” said EF-14 principal investigator Roger Stupp. “This is the first positive phase 3 trial in newly diagnosed GBM since we demonstrated the efficacy of temozolomide in 2005, establishing it as a standard first-line therapy.”

The median overall survival for patients with newly diagnosed GBM is approximately 15 months with standard therapies, Novocure says.

The trial news sent NVCR stock up roughly 50%, putting it at highs last seen in July 2016, before the company plunged about 30% in a single day thanks to a disappointing second quarter.

As a result of the positive news, JMP Securities analyst Michael King reiterated his “Market Outperform” rating on NVCR shares.

As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2017/04/novocure-ltd-nvcr-stock-just-popped-50/.

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