Piper Sandler analyst Jason Bednar downgraded Novocure to Neutral from Overweight with a price target of $70, down from $90. The analyst anticipates a positive headline for the LUNAR trial when provided in early January. The analyst’s concerns for the stock are more tied to what comes after the data release, mainly with regard to the “long and arduous road ahead” of management to secure regulatory approvals, payer coverage, and then commercialize an entirely new indication. With this being a “multiyear process” and with glioblastoma revenue challenges “presenting in multiple markets,” Bednar is worried revenue for Novocure may be “mostly stagnant” through 2025. HE says this is not how the Street is modeling the business.
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