Novocure

Introduction

Dr. Palti founded NovoCure, a private medical device company, in 2000. NovoCure focuses on developing a revolutionary technology/system – “NovoTTF-100A” to healing various types of cancers such as lung, breast and pancreatic cancer. This technology used alternating electrical field, called “Tumor Treating Fields (TTFields)” to disrupt the division of cancer cells while preserving the surrounding n0n-dividing healthy cells. Compared to other cancer treatments, radiation and chemotherapy, the experiment treatment results showed the evident that NovoTTF – 100A didn’t bring side effects and had higher survival rate for patients. NovoCure invested over $25 million in pilot clinical trails and the result was a huge success. NovoCure needs more funds to prepare a registration for the FDA and to undertake the second pivotal trail. Also, NovoCure needs to transform itself quickly from a research-oriented organization to a commercial business. It not only needs more capital investment but also needs to develop a new business model. The challenges it faces are: 1) what’s product delivery model? 2) To build a billing and payment system. 3) Negotiating reimbursement rates with payors. 4) Establish a supply chain management process and 5) Building or contracting support infrastructures for patients and physician around the world. All these tasks can’t be accomplished without financing support. It will need an additional $35 million to make them happened. There are three options for NovoCure to consider: 1) Raise additional venture capital; 2) Attract a strategic investor; and 3) Attract venture philanthropy.

Recommendations

Recommendation 1: Attract strategic investors/partners

Negotiate with well-known hospital that had established cancer research center and seek for the opportunity to work together. Cancer treatment is very critical for many hospitals especially for those that focused on cancer treatment and had good reputation. NovoCure can collaborate with...