Citation:
Nanda, Ramana, William A. Sahlman, Robert White, and Hunter Ashmore. "Business Models Problem Set." Harvard Business School Exercise 816-016, August 2015. (Revised July 2020.) View Details|
Case HBS Case Collection November 2009 (Revised August 2010) NovoCure Ltd. |
Abstract
Venture capitalist William Doyle must raise $35 million for a portfolio company with a promising, novel cancer therapy, just as global capital markets are imploding in the fall of 2008. NovoCure, Ltd., has developed an electrical-field-based therapy, called Tumor Treating fields, for the treatment of cancerous tumors. The therapy has shown significant efficacy with no side effects after five years of testing in human patients. Doyle believes NovoCure has the potential to become an important company with a major new cancer therapy platform but must complete pivotal (Phase III) clinical trials and receive FDA approval. Doyle's venture capital firm, WFD Ventures, has invested $25 million in three rounds to fund pilot clinical trials for glioblastoma and other non-small cell lung cancer, and the first pivotal clinical trial for glioblastoma. Additional financing is needed to proceed with the strategically important second pivotal trial. In the fall of 2008 Doyle was negotiating the final terms of an investment by two prominent hedge funds when the liquidity crisis caused the hedge funds to withdraw from the transaction. Dole must now reevaluate his options for securing the needed financing for this promising young company.
Keywords: Financial Crisis; Entrepreneurship; Venture Capital; Investment; Health Care and Treatment; Health Testing and Trials; Technological Innovation; Financial Services Industry;
Citation:
Sahlman, William A., and Sarah Flaherty. "NovoCure Ltd." Harvard Business School Case 810-045, November 2009. (Revised August 2010.)
