Cancer-targeting biotech NovoCure (NVCR -9.00%) had some highly positive news from the laboratory to deliver earlier this week, and investors couldn't grab hold of the stock fast enough. This momentum was helped by price target increases from analysts. According to data compiled by S&P Global Market Intelligence, those bullish market players propelled the stock nearly 33% higher week to date as of early Friday morning.
NovoCure's news broke on Monday, setting the tone for the remaining trading days of the week. The company, in collaboration with its partner Zai Lab, published a readout from a phase 3 clinical trial of its tumor treating fields (TTF) therapy.
This treatment, administered in conjunction with a pair of cancer drugs, was being evaluated for the treatment of unresectable, locally advanced pancreatic adenocarcinoma. NovoCure said the therapy met its primary endpoint, demonstrating a statistically significant improvement in survival for the study's participants versus a control group.
NovoCure's TTF technology takes the form of a small, battery-powered device that generates electrical fields. This atypical therapy has the great advantage of producing very few side effects. The biotech said the treatment in the phase 3 trial was generally well tolerated, and safety basically matched that of previous trials.
It added that it aims to apply for regulatory approval for the device to treat that specific type of cancer. The company will also submit the results for presentation at healthcare industry conferences. It did not provide further details.
This latest development with NovoCure was quite encouraging for analysts tracking the stock. One of them, H.C. Wainwright's Emily Bodnar, raised her price target on the shares Tuesday morning. She now feels they're worth $38 apiece -- quite the hefty move from her previous assessment of $30 -- and continues to recommend it as a buy. According to reports, Bodnar did not expect such a positive result from the trial.
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