Shares of Novocure (NASDAQ: NVCR) were sinking 10.7% lower as of 11:02 a.m. ET on Monday. The decline came after Piper Sandler analyst Jason Bednar downgraded the stock to neutral from overweight. Bednar also cut the 12-month price target for Novocure to $70 from the previous target of $90.

Is Bednar worried about Novocure's upcoming clinical results for its tumor-treating fields (TTFields) therapy? No. He actually expects the company will announce positive results in January from the Lunar study evaluating TTFields in treating non-small cell lung cancer.

So what's behind the Piper Sandler analyst's newfound negativity? Bednar wrote to investors that he's not enthusiastic about Novocure facing the long process of winning regulatory approvals for TTFields in the new indication, securing reimbursement, and going after a new market.

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Source Fool.com