NovoCure, Maker of Brain-Cancer Device, Files for IPO

Tuesday, September 01, 2015

NovoCure Ltd., which makes a device that uses electrical fields to fight a common form of brain cancer, has disclosed plans for an initial public offering.

NovoCure’s Optune system is a treatment for recurrent glioblastoma. The portable, noninvasive device delivers electrical fields from electrodes on the surface of the scalp to disrupt cancer cell division.

In April 2011, the U.S. Food and Drug Administration approved the system for treatment of adult patients with glioblastoma multiforme brain tumors, following tumor recurrence after chemotherapy.

In May, the FDA granted priority review status for a premarket approval application for use of the system in combination with temozolomide chemotherapy as a first-line glioblastoma treatment.

NovoCure’s investors include WFD Ventures LLC.

The company said in an S-1 filing Monday that it will offer up to $300 million of stock, but that is a placeholder amount likely to change. NovoCure filed a confidential draft registration statement in June. Under the JOBS Act, companies with revenue below $1 billion are allowed to keep filings confidential until they are ready to market shares to potential investors.

J.P. Morgan, Deutsche Bank and Evercore are joint book-running managers.

NovoCure, which has operations in the U.S. and Israel, is incorporated in Jersey, Channel Islands.

The company’s revenue increased to $15.5 million last year from $10.4 million in 2013. NovoCure said in the filing that it has had significant costs from items including preclinical and clinical trials and commercial launch efforts, and expects to post operating losses for several years.

 

wsj.com