Novocure Reports First Quarter 2022 Financial Results
Novocure reported Q1 2022 net revenues of $137.5 million, marking a 2% increase from Q1 2021, with an 80% gross margin. The company aims for a transformational year with significant clinical milestones anticipated, including data releases from multiple studies and the completion of its third pivotal study within 12 months. Despite a net loss of $4.6 million and a loss per share of $0.04, investments in marketing and clinical trials suggest future growth potential.
- Q1 2022 net revenues increased by 2% year-over-year.
- Gross margin maintained at 80%.
- Reducing R&D expenses by 8% compared to Q1 2021.
- Anticipation of multiple clinical data releases in 2022.
- Net loss of $4.6 million for the quarter.
- Sales and marketing expenses rose by 21% compared to Q1 2021.
Quarterly net revenues of
Entering a transformational period with multiple clinical catalysts expected in near-term
“The first quarter was another period of solid execution for Novocure,” said
“2022 marks the beginning of what we expect to be a transformational period for our company and patients,” said
Financial updates for the first quarter ended
-
Total net revenues for the quarter were
, an increase of$137.5 million 2% compared to the same period in 2021.-
The United States , EMEA andJapan contributed ,$97.4 million , and$27.0 million in quarterly net revenues, respectively.$8.8 million -
Revenue in
Greater China from Novocure’s partnership with Zai Lab totaled .$4.4 million
-
-
Gross margin for the quarter was
80% . -
Research, development and clinical studies expenses for the quarter were
, a decrease of$42.2 million 8% from the same period in 2021. Direct clinical trial costs can fluctuate quarter-to-quarter depending on the clinical research organization services delivered and clinical trial materials procured, and we are investing aggressively in future growth and development initiatives. -
Sales and marketing expenses for the quarter were
, an increase of$37.9 million 21% compared to the same period in 2021. This reflects increased investments in market access capabilities as well as early commercial capabilities in anticipation of potential future approvals and launches in new indications. -
General and administrative expenses for the quarter were
, a decrease of$30.5 million 2% compared to the same period in 2021. -
Net loss for the quarter was
with loss per share of$4.6 million .$0.04 -
Adjusted EBITDA* for the quarter was
.$26.8 million -
Cash, cash equivalents and short-term investments were
as of$932.3 million March 31, 2022 .
Operational updates for the first quarter ended
-
As of
March 31, 2022 , there were 3,549 active patients on therapy. Active patients fromNorth America , EMEA andJapan contributed 2,257, 965 and 327 active patients, respectively. -
1,384 prescriptions were received in the quarter. Prescriptions from
North America , EMEA andJapan contributed 935, 347 and 102 prescriptions, respectively.
Quarterly achievements:
-
In February, Novocure founder and TTFields inventor
Yoram Palti won the 2022 Israel Prize in Entrepreneurship and Technological Innovation. This prize is regarded as the State of Israel’s highest cultural honor and recognizes Israeli citizens who have shown special excellence and a breakthrough in their field or who have made a special contribution to Israeli society. - In March, an independent data monitoring committee (“DMC”) conducted a pre-specified interim analysis of the phase 3 pivotal INNOVATE-3 study for the treatment of ovarian cancer. Following completion of the interim analysis, the DMC recommended that the study should continue to final analysis as planned. Data will be reviewed in 2023, following an 18 month follow-up period.
2022 Outlook:
-
We expect to achieve active patient growth between
2% to5% in 2022, in-line with the growth rate experienced in the first quarter of 2022. Longer term, the company continues to expect further adoption in its core GBM business.
Anticipated clinical milestones:
- Data from phase 2 pilot EF-31 study in gastric cancer (2022)
- Data from phase 2 pilot EF-33 study with high-intensity arrays in recurrent GBM (2022)
- Last patient enrollment in phase 3 pivotal METIS study in brain metastases (2022)
- Data from phase 3 pivotal LUNAR study in NSCLC (2022)
- Last patient enrollment in phase 3 pivotal PANOVA-3 study in locally advanced pancreatic cancer (2023)
- Data from phase 3 pivotal INNOVATE-3 study in recurrent ovarian cancer (2023)
- Data from phase 3 pivotal METIS study in brain metastases (2023)
- Data from phase 3 pivotal PANOVA-3 study in locally advanced pancreatic cancer (2024)
Conference call details
Novocure will host a conference call and webcast to discuss first quarter 2022 financial results at
The webcast, earnings slides presented during the webcast and the corporate presentation can be accessed live from the Investor Relations page of Novocure’s website, www.novocure.com/investor-relations, and will be available for at least 14 days following the call. Novocure has used, and intends to continue to use, its investor relations website, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Novocure
Novocure is a global oncology company working to extend survival in some of the most aggressive forms of cancer through the development and commercialization of its innovative therapy, Tumor Treating Fields. Novocure’s commercialized products are approved in certain countries for the treatment of adult patients with glioblastoma and malignant pleural mesothelioma. Novocure has ongoing or completed clinical studies investigating Tumor Treating Fields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer and ovarian cancer.
Headquartered in Jersey, and with a growing global footprint, Novocure has regional operating centers in Root,
*Non-GAAP Financial Measurements
We measure our performance based upon a non-
Forward-Looking Statements
In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Novocure’s current expectations or forecasts of future events. These may include statements regarding anticipated scientific progress on its research programs, clinical study progress, development of potential products, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, coverage, collections from third-party payers and other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the use of words in the statements such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” or other words and terms of similar meaning. Novocure’s performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, environmental, regulatory and political conditions as well as issues arising from the COVID-19 pandemic and other more specific risks and uncertainties facing Novocure such as those set forth in its Annual Report on Form 10-K filed on
Consolidated Statements of Operations |
|||||||||||
USD in thousands (except share and per share data) |
|||||||||||
|
Three months ended |
|
Year ended
|
||||||||
|
2022 |
|
2021 |
|
2021 |
||||||
|
Unaudited |
|
Audited |
||||||||
Net revenues |
$ |
137,547 |
|
|
$ |
134,695 |
|
|
$ |
535,031 |
|
Cost of revenues |
|
27,727 |
|
|
|
26,385 |
|
|
|
114,877 |
|
Gross profit |
|
109,820 |
|
|
|
108,310 |
|
|
|
420,154 |
|
|
|
|
|
|
|
||||||
Operating costs and expenses: |
|
|
|
|
|
||||||
Research, development and clinical studies |
|
42,234 |
|
|
|
45,916 |
|
|
|
201,303 |
|
Sales and marketing |
|
37,884 |
|
|
|
31,357 |
|
|
|
137,057 |
|
General and administrative |
|
30,508 |
|
|
|
31,125 |
|
|
|
126,127 |
|
Total operating costs and expenses |
|
110,626 |
|
|
|
108,398 |
|
|
|
464,487 |
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
(806 |
) |
|
|
(88 |
) |
|
|
(44,333 |
) |
Financial expenses (income), net |
|
1,709 |
|
|
|
2,646 |
|
|
|
7,742 |
|
|
|
|
|
|
|
||||||
Income (loss) before income taxes |
|
(2,515 |
) |
|
|
(2,734 |
) |
|
|
(52,075 |
) |
Income taxes |
|
2,132 |
|
|
|
1,394 |
|
|
|
6,276 |
|
Net income (loss) |
$ |
(4,647 |
) |
|
$ |
(4,128 |
) |
|
$ |
(58,351 |
) |
|
|
|
|
|
|
||||||
Basic net income (loss) per ordinary share |
$ |
(0.04 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.56 |
) |
Weighted average number of ordinary shares used in computing basic net income (loss) per share |
|
104,186,120 |
|
|
|
102,633,545 |
|
|
|
103,433,274 |
|
Diluted net income (loss) per ordinary share |
$ |
(0.04 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.56 |
) |
Weighted average number of ordinary shares used in computing diluted net income (loss) per share |
|
104,186,120 |
|
|
|
102,633,545 |
|
|
|
103,433,274 |
|
Consolidated Balance Sheets |
|||||
USD in thousands (except share data) |
|||||
|
|
|
|
||
|
Unaudited |
|
Audited |
||
ASSETS |
|
|
|
||
CURRENT ASSETS: |
|
|
|
||
Cash and cash equivalents |
$ |
190,739 |
|
$ |
208,802 |
Short-term investments |
|
741,562 |
|
|
728,898 |
Restricted cash |
|
889 |
|
|
807 |
Trade receivables, net |
|
100,965 |
|
|
93,567 |
Receivables and prepaid expenses |
|
17,343 |
|
|
17,025 |
Inventories |
|
29,084 |
|
|
24,427 |
Total current assets |
|
1,080,582 |
|
|
1,073,526 |
LONG-TERM ASSETS: |
|
|
|
||
Property and equipment, net |
|
25,072 |
|
|
22,693 |
Field equipment, net |
|
12,792 |
|
|
12,923 |
Right-of-use assets |
|
19,937 |
|
|
18,267 |
Other long-term assets |
|
11,827 |
|
|
12,086 |
Total long-term assets |
|
69,628 |
|
|
65,969 |
TOTAL ASSETS |
$ |
1,150,210 |
|
$ |
1,139,495 |
|
|
|
|
Consolidated Balance Sheets |
|||||||
USD in thousands (except share data) |
|||||||
|
|
|
|
||||
|
Unaudited |
|
Audited |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Trade payables |
$ |
69,186 |
|
|
$ |
72,600 |
|
Other payables, lease liabilities and accrued expenses |
|
58,613 |
|
|
|
70,002 |
|
Total current liabilities |
|
127,799 |
|
|
|
142,602 |
|
LONG-TERM LIABILITIES: |
|
|
|
||||
Long-term debt, net |
|
563,026 |
|
|
|
562,216 |
|
Deferred revenue |
|
5,511 |
|
|
|
6,477 |
|
Long-term leases |
|
14,813 |
|
|
|
12,997 |
|
Employee benefit liabilities |
|
3,024 |
|
|
|
4,543 |
|
Other long-term liabilities |
|
156 |
|
|
|
166 |
|
Total long-term liabilities |
|
586,530 |
|
|
|
586,399 |
|
TOTAL LIABILITIES |
|
714,329 |
|
|
|
729,001 |
|
|
|
|
|
||||
COMMITMENTS AND CONTINGENCIES |
|
|
|
||||
|
|
|
|
||||
SHAREHOLDERS' EQUITY: |
|
|
|
||||
Share capital - |
|
|
|
||||
Ordinary shares no par value, unlimited shares authorized; issued and outstanding:
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
1,127,782 |
|
|
|
1,099,589 |
|
Accumulated other comprehensive income (loss) |
|
(1,328 |
) |
|
|
(3,169 |
) |
Retained earnings (accumulated deficit) |
|
(690,573 |
) |
|
|
(685,926 |
) |
TOTAL SHAREHOLDERS' EQUITY |
|
435,881 |
|
|
|
410,494 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,150,210 |
|
|
$ |
1,139,495 |
|
Non- |
|||||||||||
USD in thousands |
|||||||||||
|
|
|
|||||||||
|
|
2022 |
|
2021 |
|
% Change |
|||||
Net income (loss) |
|
$ |
(4,647 |
) |
|
$ |
(4,128 |
) |
|
13 |
% |
Add: Income tax |
|
|
2,132 |
|
|
|
1,394 |
|
|
53 |
% |
Add: Financial expenses (income ), net |
|
|
1,709 |
|
|
|
2,646 |
|
|
(35 |
)% |
Add: Depreciation and amortization |
|
|
2,610 |
|
|
|
2,370 |
|
|
10 |
% |
EBITDA |
|
$ |
1,804 |
|
|
$ |
2,282 |
|
|
(21 |
)% |
Add: Share-based compensation |
|
|
25,045 |
|
|
|
18,863 |
|
|
33 |
% |
Adjusted EBITDA |
|
$ |
26,849 |
|
|
$ |
21,145 |
|
|
27 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005264/en/
Investors:
investorinfo@novocure.com
610-723-7427
Media:
media@novocure.com
610-723-7428
Source: Novocure
FAQ
What were the financial results for Novocure in Q1 2022?
What is Novocure's outlook for 2022?
What was the net loss for Novocure in Q1 2022?
What significant developments are expected from Novocure in 2022?