Novocure Announces Q2 2024 Financial Results

Novocure, a global oncology firm, has disclosed its financial performance for the quarter ending June 30, 2024. Specializing in Tumor Treating Fields (TTFields) therapy, the company is committed to enhancing survival rates in patients with some of the most formidable types of cancer.

Asaf Danziger, the CEO of Novocure, highlighted that the second quarter marked a phase of consistent progress for the company. Novocure's primary goals for the year include expanding its commercial operations in glioblastoma, introducing TTFields therapy for non-small cell lung cancer (NSCLC), and advancing clinical and product development pipelines. Significant strides have been made across these areas during the quarter.

In financial terms, the company's total net revenues for the quarter reached $150.4 million, a 19% increase from the same period in 2023. This growth is largely attributed to a successful market launch in France and higher approval rates in the U.S. Specific contributions came from the United States, Germany, France, and Japan, which collectively brought in $95.7 million, $15.1 million, $14.3 million, and $7.7 million, respectively. Other active markets added $11.8 million to the revenue. Novocure's partnership with Zai Lab in Greater China contributed $5.8 million. Improved approval rates in the U.S. added $5.0 million in net revenue from prior period claims, while a payment from a private payer in the U.K. added another $2.6 million. These benefits, totaling $7.6 million, are not expected to recur.

The company's gross margin for the quarter stood at 77%. Expenses for research, development, and clinical studies were $55.0 million, a slight 1% decrease from the previous year. Sales and marketing expenses saw a 3% reduction, amounting to $56.6 million, primarily due to lower personnel costs. General and administrative expenses also decreased by 8% to $37.7 million. Novocure reported a net loss of $33.4 million, with a loss per share of $0.31. Adjusted EBITDA for the quarter was recorded at $1.1 million. The company's cash, cash equivalents, and short-term investments amounted to $951.2 million as of June 30, 2024.

Operationally, Novocure received 1,634 prescriptions during the quarter, a 5% increase compared to the same period in the previous year. The United States, Germany, France, and Japan accounted for 957, 206, 176, and 108 prescriptions, respectively. Other active markets contributed an additional 187 prescriptions. As of the quarter's end, there were 3,963 active patients using TTFields therapy, an 11% increase from the previous year. The United States, Germany, France, and Japan had 2,175, 538, 369, and 403 active patients, respectively, with 478 active patients from other markets.

Significant achievements during the quarter include the presentation of positive results from the phase 3 METIS trial at the 2024 American Society of Clinical Oncology (ASCO) annual meeting. The trial evaluated the effectiveness of TTFields therapy for patients with brain metastases from NSCLC post-stereotactic radiosurgery. The METIS trial met its primary endpoint, showing a marked improvement in time to intracranial progression for patients treated with TTFields therapy compared to those receiving supportive care alone.

Additionally, Novocure presented top-line results from the TIGER study, a non-interventional investigation of TTFields therapy for newly diagnosed glioblastoma (GBM) in Germany. The outcomes were consistent with previous phase 3 clinical trials, reaffirming the therapy's efficacy and safety without increasing systemic toxicity.

Looking ahead, Novocure anticipates releasing top-line data from its phase 3 PANOVA-3 clinical trial for locally advanced pancreatic cancer in the fourth quarter of 2024.