Who are they?
Novocure’s tumor-treating field devices use electric fields to disrupt the replication of cancer cells. Its main market currently is in treating glioblastoma multiforme, the most common form of brain cancer, but it is pursuing other solid tumors including lung cancer.
Why bother?
- It’s Optune device recently secured Medicare reimbursement in treating glioblastoma, promising to boost revenue and improve margins.
- A partnership with Zai Lab gives the company exposure to the large Chinese market for glioblastoma, and eventually much larger markets for lung cancer.
- It is funding R&D out of cash flow and should see pivotal results in new applications beginning in 2021.
- It is has no direct competition in its offering and numerous opportunities for growth.
- International sales beyond US are already 32% and growing fast.
Market opportunity?
- China alone has 45k new cases of glioblastoma, with 450k of lung cancer cases in urban areas in china alone.
It’s stock is trading 30.9% below all time high, at the time of writing.