Novocure Announces Q1 2024 Financial Results

NovoCure Ltd. (NASDAQ: NVCR), a global leader in oncology, reported its financial outcomes for the first quarter ending March 31, 2024. The company, dedicated to improving survival rates in some of the deadliest cancers through its Tumor Treating Fields (TTFields) therapy, highlighted significant advancements and financial performance.

William Doyle, Executive Chairman of Novocure, remarked on the strong execution in Q1 2024, noting an 11% increase in GBM active patients, successful results from the METIS Phase 3 clinical trial, and a productive Day-100 meeting with the FDA for their LUNAR PMA application. Doyle emphasized the company's commitment to achieving key milestones in 2024 and praised the team's dedication and hard work.

Financial Performance for Q1 2024:
For the quarter ending March 31, 2024, Novocure reported total net revenues of $138.5 million, marking a 13% increase from the same period in 2023. This growth was primarily driven by a successful launch in France and improved approval rates in the U.S. Revenue contributions were significant from the United States ($90.5 million), Germany ($15.7 million), Japan ($7.8 million), and other active markets ($19.5 million). A partnership with Zai Lab in Greater China added $4.9 million to the revenue.

The gross margin for the quarter stood at 76%. Expenses on research, development, and clinical studies decreased by 14% to $51.6 million, reflecting reduced personnel and clinical trial costs. Sales and marketing expenses rose by 8% to $55.2 million due to an expanded sales force and increased marketing activities. General and administrative expenses saw a 6% decline to $39.5 million, primarily due to lower personnel expenses. The net loss for the quarter was $38.8 million, equating to a loss of $0.36 per share. Adjusted EBITDA was reported at $(4.6) million. The company held $870 million in cash, cash equivalents, and short-term investments as of March 31, 2024.

In a strategic move in May, Novocure entered a five-year senior secured credit facility agreement with Pharmakon Advisors affiliates for up to $400 million. This non-dilutive debt facility, drawn across four tranches of $100 million each, aims to bolster Novocure’s cash position and provide flexibility for future investments.

Operational Highlights:
The first quarter of 2024 saw an uptick in prescriptions, with a total of 1,643 received, a 10% increase from Q1 2023. The United States accounted for 990 prescriptions, Germany 206, Japan 91, and other markets 356. As of March 31, 2024, the therapy supported 3,845 active patients: 2,137 from the U.S., 540 from Germany, 379 from Japan, and 789 from other markets.

Key achievements included a productive Day-100 FDA meeting in April for the PMA application for Optune Lua in non-small cell lung cancer (NSCLC), with no indication that the PMA would be referred to an advisory panel. The decision on the PMA is anticipated in the latter half of 2024. In March, the METIS Phase 3 trial showed significant results, indicating a considerable extension in time to intracranial progression for patients with brain metastases from NSCLC. This data will be highlighted at the American Society of Clinical Oncology (ASCO) scientific congress. Additionally, the FDA approved an Investigational New Drug (IND) application for the Phase 3 KEYNOTE D58 trial, exploring TTFields therapy combined with temozolomide and pembrolizumab for newly diagnosed glioblastoma.

Anticipated clinical milestones for 2024 include top-line data from the Phase 3 PANOVA-3 trial in locally advanced pancreatic cancer, expected in Q4 2024.

About Novocure:
Novocure specializes in extending survival in aggressive cancers through its Tumor Treating Fields (TTFields) therapy. The company’s products have received approval in various countries for treating glioblastoma and malignant pleural mesothelioma. Ongoing clinical trials are exploring TTFields in brain metastases, gastric cancer, liver cancer, pancreatic cancer, and ovarian cancer.

Headquartered in Root, Switzerland, Novocure operates globally with centers in Portsmouth, New Hampshire, Tokyo, and a research center in Haifa, Israel.

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