NovoCure (NVCR), a biotech company focused on developing novel cancer treatments, faced a significant setback as its stock plummeted by 5.43% on October 17th, despite receiving FDA approval for its Optune Lua device for treating metastatic non-small cell lung cancer (NSCLC).

The Optune Lua is a wearable device that utilizes tumor-treating electric fields (TTFields) to inhibit the proliferation and metastasis of lung cancer cells. This innovative technology has shown promising results in clinical trials, including the LUNAR Phase 3 study, where patients using Optune Lua in combination with other therapies demonstrated notable improvements in overall outcomes compared to those receiving standard therapy alone.

While the FDA approval for Optune Lua should have been a positive catalyst for NovoCure, the stock's decline suggests that investors have concerns about the commercial prospects of the device. Several analysts have expressed skepticism, citing potential issues with the device's cost and the challenges in obtaining reimbursement from insurance providers.