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Novocure Reports Third Quarter 2024 Financial Results

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Novocure (NVCR) reported Q3 2024 financial results with net revenues of $155.1 million, up 22% year-over-year. The company achieved record 4,113 active patients on therapy and received FDA approval for Optune Lua® for metastatic non-small cell lung cancer treatment. The quarter showed a net loss of $30.6 million ($0.28 per share). Key market revenues included US ($98.3M), Germany ($17.0M), France ($15.2M), and Japan ($8.6M). The company maintains strong liquidity with $959.9 million in cash and investments. CEO Asaf Danziger announced retirement, to be succeeded by CFO Ashley Cordova effective January 2025.

Novocure (NVCR) ha riportato i risultati finanziari del terzo trimestre del 2024 con entrate nette di 155,1 milioni di dollari, in aumento del 22% rispetto all'anno precedente. L'azienda ha raggiunto un record di 4.113 pazienti attivi in terapia e ha ricevuto l'approvazione della FDA per Optune Lua® per il trattamento del cancro polmonare non a piccole cellule metastatico. Nel trimestre si è registrata una perdita netta di 30,6 milioni di dollari (0,28 dollari per azione). Le entrate chiave di mercato includevano Stati Uniti ($98,3M), Germania ($17,0M), Francia ($15,2M) e Giappone ($8,6M). L'azienda mantiene una buona liquidità con 959,9 milioni di dollari in contanti e investimenti. Il CEO Asaf Danziger ha annunciato il suo ritiro, e sarà succeduto dal CFO Ashley Cordova, con effetto da gennaio 2025.

Novocure (NVCR) reportó los resultados financieros del tercer trimestre de 2024 con ingresos netos de 155,1 millones de dólares, un aumento del 22% en comparación con el año anterior. La empresa logró un récord de 4.113 pacientes activos en terapia y recibió la aprobación de la FDA para Optune Lua® en el tratamiento del cáncer de pulmón no microcítico metastásico. El trimestre mostró una pérdida neta de 30,6 millones de dólares (0,28 dólares por acción). Los ingresos clave del mercado incluyeron EE. UU. ($98,3M), Alemania ($17,0M), Francia ($15,2M) y Japón ($8,6M). La compañía mantiene una fuerte liquidez con 959,9 millones de dólares en efectivo e inversiones. El CEO Asaf Danziger anunció su jubilación, que será sucedida por la CFO Ashley Cordova a partir de enero de 2025.

Novocure (NVCR)는 2024년 3분기 재무 결과를 발표했으며, 순수익이 1억 5,510만 달러로 전년 대비 22% 증가했습니다. 이 회사는 치료 중인 4,113명의 활성 환자라는 기록을 세웠으며, 비소세포 폐암 전이 치료를 위한 Optune Lua®에 대해 FDA 승인을 받았습니다. 이번 분기에는 3,060만 달러의 순손실 ($0.28 주당 손실)이 발생했습니다. 주요 시장 수익은 미국 ($9830만), 독일 ($1,700만), 프랑스 ($1,520만) 및 일본 ($860만)을 포함했습니다. 이 회사는 9억 5,990만 달러의 현금 및 투자로 강력한 유동성을 유지하고 있습니다. CEO Asaf Danziger는 은퇴를 발표했으며, 2025년 1월부터 CFO Ashley Cordova가 후임하게 됩니다.

Novocure (NVCR) a annoncé les résultats financiers du troisième trimestre 2024 avec des revenus nets de 155,1 millions de dollars, en hausse de 22% par rapport à l'année précédente. L'entreprise a atteint un record de 4 113 patients actifs en traitement et a obtenu l'approbation de la FDA pour Optune Lua® dans le traitement du cancer du poumon non à petites cellules métastatique. Le trimestre a montré une perte nette de 30,6 millions de dollars (0,28 dollars par action). Les revenus clés du marché comprenaient les États-Unis (98,3 millions de dollars), l'Allemagne (17 millions de dollars), la France (15,2 millions de dollars) et le Japon (8,6 millions de dollars). L'entreprise maintient une forte liquidité avec 959,9 millions de dollars en liquidités et investissements. Le PDG Asaf Danziger a annoncé sa retraite, il sera remplacé par la CFO Ashley Cordova à partir de janvier 2025.

Novocure (NVCR) berichtete über die finanziellen Ergebnisse des 3. Quartals 2024 mit netto Einnahmen von 155,1 Millionen Dollar, was einem Anstieg von 22% im Vergleich zum Vorjahr entspricht. Das Unternehmen erreichte einen Rekord von 4.113 aktiven Patienten in Behandlung und erhielt die FDA-Zulassung für Optune Lua® zur Behandlung von metastasierendem nicht-kleinzelligem Lungenkrebs. Im Quartal wurde ein Nettoverlust von 30,6 Millionen Dollar (0,28 Dollar pro Aktie) verzeichnet. Die wichtigsten Marktumsätze umfassten die USA ($98,3M), Deutschland ($17,0M), Frankreich ($15,2M) und Japan ($8,6M). Das Unternehmen hält eine starke Liquidität mit 959,9 Millionen Dollar in bar und Investitionen. CEO Asaf Danziger kündigte seinen Rücktritt an, die Nachfolge tritt CFO Ashley Cordova ab Januar 2025 an.

Positive
  • 22% year-over-year revenue growth to $155.1 million
  • Record 4,113 active patients on therapy
  • FDA approval for Optune Lua in metastatic non-small cell lung cancer
  • Strong cash position of $959.9 million
  • 8% increase in prescriptions compared to Q3 2023
  • 77% gross margin in Q3 2024
Negative
  • Net loss of $30.6 million in Q3 2024
  • One-time revenue benefit of $4.7M from prior period claims not expected to recur

Insights

The Q3 results show significant growth with $155.1M in revenue, up 22% YoY, driven by French market expansion and improved U.S. approval rates. Notable is the $4.7M one-time benefit from prior claims that won't recur. Despite revenue growth, the company posted a $30.6M net loss ($0.28 per share), though maintaining a healthy 77% gross margin. The balance sheet remains strong with $959.9M in cash and equivalents.

The operational metrics are encouraging with 4,113 active patients (record high) and 8% YoY growth in prescriptions. The FDA approval for Optune Lua in NSCLC opens a substantial new market opportunity, though the upcoming CEO transition adds some uncertainty. Cost control is evident with R&D and G&A expenses decreasing YoY.

The FDA approval of Optune Lua for metastatic non-small cell lung cancer represents a significant therapeutic expansion. NSCLC is one of the most common and deadly cancers, making this approval particularly impactful for market potential. The Breakthrough Device designation for brain metastases from NSCLC further strengthens the company's oncology portfolio.

The pipeline momentum continues with multiple late-stage trials, notably the PANOVA-3 trial in pancreatic cancer with results expected in Q4 2024. This diversification across multiple aggressive cancers demonstrates the platform's versatility. The growing active patient base validates the therapy's clinical adoption and real-world effectiveness.

Quarterly net revenues of $155 million, up 22% year-over-year, with record 4,113 active patients on therapy as of September 30, 2024

FDA approves Optune Lua® for the treatment of metastatic non-small cell lung cancer

After 22 years as CEO, Asaf Danziger announces planned retirement at year end, will be succeeded by current CFO Ashley Cordova

Christoph Brackmann appointed Chief Financial Officer, effective January 1, 2025

ROOT, Switzerland--(BUSINESS WIRE)-- Novocure (NASDAQ: NVCR) today reported financial results for the third quarter ended September 30, 2024. Novocure is a global oncology company working to extend survival in some of the most aggressive forms of cancer by developing and commercializing its innovative therapy, Tumor Treating Fields (TTFields).

“This was a period of strong execution and achievement at Novocure,” said William Doyle, Novocure’s Executive Chairman. “We secured FDA approval and launched Optune Lua for the treatment of patients with metastatic non-small cell lung cancer, achieved significant year-over-year revenue growth across our major markets, and solidified our management team to drive our next stage of growth. It is an exciting time to be at Novocure as we pursue opportunities to make a difference in the lives of our patients.”

Financial updates for the third quarter ended September 30, 2024:

  • Total net revenues for the quarter were $155.1 million, an increase of 22% compared to the same period in 2023. This increase is primarily driven by our successful launch in France and improved U.S. approval rates.
    • The U.S., Germany, France and Japan contributed $98.3 million, $17.0 million, $15.2 million and $8.6 million, respectively, with other active markets contributing $11.3 million.
    • Improved approval rates in the U.S. resulted in $4.7 million of increased net revenue from prior period claims during the quarter. We do not expect this benefit to recur.
    • Revenue in Greater China from Novocure’s partnership with Zai Lab totaled $4.6 million.
  • Gross margin for the quarter was 77%.
  • Research, development and clinical studies expenses for the quarter were $51.9 million, a decrease of 3% from the same period in 2023.
  • Sales and marketing expenses for the quarter were $59.8 million, an increase of 3% compared to the same period in 2023.
  • General and administrative expenses for the quarter were $40.1 million, a decrease of 4% compared to the same period in 2023.
  • Net loss for the quarter was $30.6 million with loss per share of $0.28.
  • Adjusted EBITDA* for the quarter was $1.7 million.
  • Cash, cash equivalents and short-term investments were $959.9 million as of September 30, 2024.

Operational updates for the third quarter ended September 30, 2024:

  • 1,586 prescriptions were received in the quarter, an increase of 8% compared to the same period in 2023. Prescriptions from the U.S., Germany, France and Japan contributed 934; 217; 171 and 99 prescriptions, respectively, with the remaining 165 prescriptions received in other active markets.
  • As of September 30, 2024, there were a record 4,113 active patients on therapy. Active patients from the U.S., Germany, France and Japan contributed 2,200; 570; 393 and 437 active patients, respectively, with the remaining 513 active patients contributed by other active markets.

Quarterly updates and achievements:

  • In October, based on the results from the Phase 3 LUNAR trial, the U.S. Food and Drug Administration (FDA) approved our Premarket Approval (PMA) application for Optune Lua for concurrent use with PD-1/PD-L1 inhibitors or docetaxel for the treatment of adult patients with metastatic NSCLC who have progressed on or after a platinum-based regimen. Our commercial launch in the U.S. is underway with physician certification ongoing and first prescription received shortly after approval.
  • In October, the U.S. FDA granted Breakthrough Device designation for the use of TTFields therapy for brain metastases from non-small cell lung cancer. Breakthrough Device designation gives us more frequent, faster and interactive access to the FDA review team and senior management during the review process, priority review of our marketing application upon filing, and expedited review of pre-PMA manufacturing and quality systems compliance inspections.
  • In September, we announced the retirement of Chief Executive Officer (CEO) Asaf Danziger, effective January 1, 2025. Mr. Danziger will be succeeded by Chief Financial Officer (CFO) Ashley Cordova. In October, we appointed Christoph Brackmann to succeed Ms. Cordova as CFO, effective January 1, 2025. In addition, we announced the promotion of Mukund Paravasthu to the role of Chief Operating Officer, effective October 1, 2024.

Anticipated clinical milestones:

  • Top-line data from Phase 3 PANOVA-3 clinical trial in locally advanced pancreatic cancer (Q4 2024)
  • Data from Phase 2 PANOVA-4 clinical trial in metastatic pancreatic cancer (2026)
  • Data from Phase 3 TRIDENT clinical trial in newly diagnosed glioblastoma (2026)

Conference call details

Novocure will host a conference call and webcast to discuss third quarter 2024 financial results at 8:00 a.m. EDT today, Wednesday, October 30, 2024. To access the conference call by phone, use the following conference call registration link and dial-in details will be provided. To access the webcast, use the following webcast registration link.

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, non-small cell lung cancer, malignant pleural mesothelioma and pleural mesothelioma. Novocure has several additional ongoing or completed clinical trials exploring the use of Tumor Treating Fields therapy in the treatment of glioblastoma, non-small cell lung cancer and pancreatic cancer.

Novocure’s global headquarters is located in Root Switzerland, with U.S. headquarters located in Portsmouth, New Hampshire and research and development facilities located in Haifa, Israel. For additional information about the company, please visit Novocure.com and follow @Novocure on LinkedIn and Twitter.

*Non-GAAP Financial Measurements

We measure our performance based upon a non-U.S. GAAP measurement of earnings before interest, taxes, depreciation, amortization and shared-based compensation ("Adjusted EBITDA"). We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because it helps investors compare the results of our operations from period to period by removing the impact of earnings attributable to our capital structure, tax rate and material non-cash items, specifically share-based compensation.

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 trial 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 and other more specific risks and uncertainties facing Novocure such as those set forth in its Annual Report on Form 10-K filed on February 22, 2024, and subsequent filings with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Furthermore, Novocure does not intend to update publicly any forward-looking statement, except as required by law. Any forward-looking statements herein speak only as of the date hereof. The Private Securities Litigation Reform Act of 1995 permits this discussion.

NOVOCURE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and per share data)

 

Three months ended September 30,

 

Nine months ended September 30,

 

Year ended December 31,

 

2024

 

2023

 

2024

 

2023

 

2023

 

Unaudited

 

Unaudited

 

Audited

Net revenues

$

155,095

 

 

$

127,321

 

 

$

443,954

 

 

$

375,554

 

 

$

509,338

 

Cost of revenues

 

35,372

 

 

 

32,092

 

 

 

103,715

 

 

 

95,724

 

 

 

128,280

 

Gross profit

 

119,723

 

 

 

95,229

 

 

 

340,239

 

 

 

279,830

 

 

 

381,058

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Research, development and clinical studies

 

51,882

 

 

 

53,623

 

 

 

158,435

 

 

 

168,754

 

 

 

223,062

 

Sales and marketing

 

59,830

 

 

 

57,964

 

 

 

171,652

 

 

 

167,621

 

 

 

226,809

 

General and administrative

 

40,103

 

 

 

41,887

 

 

 

117,344

 

 

 

124,609

 

 

 

164,057

 

Total operating costs and expenses

 

151,815

 

 

 

153,474

 

 

 

447,431

 

 

 

460,984

 

 

 

613,928

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(32,092

)

 

 

(58,245

)

 

 

(107,192

)

 

 

(181,154

)

 

 

(232,870

)

Financial income (expenses), net

 

10,507

 

 

 

10,023

 

 

 

31,236

 

 

 

27,948

 

 

 

41,130

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax

 

(21,585

)

 

 

(48,222

)

 

 

(75,956

)

 

 

(153,206

)

 

 

(191,740

)

Income tax

 

8,985

 

 

 

1,263

 

 

 

26,749

 

 

 

6,758

 

 

 

15,303

 

Net income (loss)

$

(30,570

)

 

$

(49,485

)

 

$

(102,705

)

 

$

(159,964

)

 

$

(207,043

)

 

 

 

 

 

 

 

 

 

 

Basic and diluted net income (loss) per ordinary share

$

(0.28

)

 

$

(0.46

)

 

$

(0.95

)

 

$

(1.51

)

 

$

(1.95

)

Weighted average number of ordinary shares used in computing basic and diluted net income (loss) per share

 

108,247,716

 

 

 

106,772,814

 

 

 

107,679,501

 

 

 

106,219,194

 

 

 

106,391,178

 

Consolidated Balance Sheets
USD in thousands (except share data)

NOVOCURE LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share data)

 

September 30,
2024

 

December 31,
2023

 

Unaudited

 

Audited

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

185,422

 

$

240,821

Short-term investments

 

774,476

 

 

669,795

Restricted cash

 

3,777

 

 

1,743

Trade receivables, net

 

67,060

 

 

61,221

Receivables and prepaid expenses

 

25,437

 

 

22,677

Inventories

 

39,096

 

 

38,152

Total current assets

 

1,095,268

 

 

1,034,409

LONG-TERM ASSETS:

 

 

 

Property and equipment, net

 

73,251

 

 

51,479

Field equipment, net

 

12,913

 

 

11,384

Right-of-use assets

 

28,330

 

 

34,835

Other long-term assets

 

12,224

 

 

14,022

Total long-term assets

 

126,718

 

 

111,720

TOTAL ASSETS

$

1,221,986

 

$

1,146,129

Consolidated Balance Sheets
USD in thousands (except share data)

 

September 30,
2024

 

December 31,
2023

 

Unaudited

 

Audited

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Convertible note

$

557,333

 

 

 

 

Trade payables

 

91,319

 

 

$

94,391

 

Other payables, lease liabilities and accrued expenses

 

86,350

 

 

 

84,724

 

Total current liabilities

 

735,002

 

 

 

179,115

 

LONG-TERM LIABILITIES:

 

 

 

Convertible note

 

 

 

 

568,822

 

Senior secured credit facility, net

 

97,149

 

 

 

 

Long-term leases

 

21,144

 

 

 

27,420

 

Employee benefit liabilities

 

7,892

 

 

 

8,258

 

Other long-term liabilities

 

18

 

 

 

18

 

Total long-term liabilities

 

126,203

 

 

 

604,518

 

TOTAL LIABILITIES

 

861,205

 

 

 

783,633

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

Share capital -

 

 

 

Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 108,100,392 shares and 107,075,754 shares at September 30, 2024 (unaudited) and December 31, 2023, respectively

 

 

 

 

 

Additional paid-in capital

 

1,454,367

 

 

 

1,353,468

 

Accumulated other comprehensive income (loss)

 

(5,378

)

 

 

(5,469

)

Retained earnings (accumulated deficit)

 

(1,088,208

)

 

 

(985,503

)

TOTAL SHAREHOLDERS' EQUITY

 

360,781

 

 

 

362,496

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,221,986

 

 

$

1,146,129

 

Non-U.S. GAAP financial measures reconciliation
USD in thousands

 

Three months ended September 30,

 

Nine months ended September 30,

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

Net income (loss)

$

(30,570

)

 

$

(49,485

)

 

(38

)%

 

$

(102,705

)

 

$

(159,964

)

 

(36

)%

Add: Income tax

 

8,985

 

 

 

1,263

 

 

611

%

 

 

26,749

 

 

 

6,758

 

 

296

%

Add: Financial expenses (income), net

 

(10,507

)

 

 

(10,023

)

 

5

%

 

 

(31,236

)

 

 

(27,948

)

 

12

%

Add: Depreciation and amortization

 

2,458

 

 

 

2,803

 

 

(12

)%

 

 

8,131

 

 

 

8,246

 

 

(1

)%

EBITDA

$

(29,634

)

 

$

(55,442

)

 

(47

)%

 

$

(99,061

)

 

$

(172,908

)

 

(43

)%

Add: Share-based compensation

 

31,364

 

 

 

26,346

 

 

19

%

 

 

97,278

 

 

 

98,170

 

 

(1

)%

Adjusted EBITDA

$

1,730

 

 

$

(29,096

)

 

(106

)%

 

$

(1,783

)

 

$

(74,738

)

 

(98

)%

 

Investors:

Ingrid Goldberg

investorinfo@novocure.com

Media:

Catherine Falcetti

media@novocure.com

Source: Novocure

FAQ

What was Novocure's (NVCR) revenue in Q3 2024?

Novocure reported total net revenues of $155.1 million in Q3 2024, representing a 22% increase compared to Q3 2023.

When did FDA approve Optune Lua for NSCLC treatment?

The FDA approved Optune Lua for metastatic non-small cell lung cancer treatment in October 2024, based on Phase 3 LUNAR trial results.

Who will be Novocure's new CEO in 2025?

Current CFO Ashley Cordova will succeed Asaf Danziger as CEO, effective January 1, 2025.

How many active patients did NVCR have in Q3 2024?

Novocure reported a record 4,113 active patients on therapy as of September 30, 2024.

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