What’s driving the NovoCure (NASDAQ:NVCR) stock price by more than 50% today? The big news concerns NovoCure’s proposed treatment for a particular type of lung cancer. A clinical study has met its primary endpoint for this treatment. That’s potentially great news for the cancer-research community, and for anyone who happened to be invested in NVCR stock prior to today.
Headquartered in Switzerland, NovoCure targets aggressive forms of cancer through the development and commercialization of a therapy called Tumor Treating Fields (TTFields). These are “electric fields that exert physical forces to kill cancer cells via a variety of mechanisms.”
As NovoCure reports, non-small cell lung cancer (NSCLC) accounts for roughly 85% of all lung cancers. It’s been estimated that, in the U.S., around 193,000 patients per year are diagnosed with NSCLC. So, it’s encouraging to learn NovoCure’s clinical study of TTFields, together with standard therapies for stage-four NSCLC following progression while on or after treatment with platinum-based therapy, met its primary endpoint.
The study is called the LUNAR study. Its primary endpoint was to demonstrate a “statistically significant and clinically meaningful improvement in overall survival over standard therapies alone.” This morning, NovoCure achieved this milestone with TTFields, and the company’s investors are in a celebratory mood.
What’s Happening with NVCR Stock?
By “celebratory,” I specifically mean NVCR stock was up 50% by 10:30 a.m. Eastern today. Even for a biotechnology stock, this is certainly a sizable move in its share price.
There are clinical implications, as well. NovoCure Executive Chairman William Doyle observes the “difficulty in treating” late-stage, platinum-resistant NSCLC. In this context, Doyle believes TTFields, together with immunotherapy, “has the potential to meaningfully extend patient survival beyond what was previously possible.”
So, what’s next for NovoCure and TTFields? Reportedly, Novocure intends to file a Premarket Approval application with the U.S. Food and Drug Administration (FDA) during the second half of this year. Additionally, Novocure plans to file for a CE Mark in the European Union.
In other words, NovoCure is preparing to advance TTFields on an international scale in 2023. This could be a blockbuster year for NovoCure — and already, it’s shaping up to be a spectacular year for NVCR stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.