Company Overview - NovoCure (NVCR) is a medtech company that specializes in developing, manufacturing, and selling proprietary Tumor Treating Fields (TTFields) devices aimed at treating solid tumor cancers [1] Product Information - The company currently markets two products, including Optune Gio, which is specifically designed for the treatment of certain types of cancers [1] Investment Perspective - The Stock Research Platform (SRP) is actively screening the market for companies like NovoCure that possess a strong balance sheet, sustainable growth pathways, and valuations that present significant upside potential with limited downside risk [1]

Company Overview - NovoCure (NVCR) is a medtech company that specializes in developing, manufacturing, and selling proprietary Tumor Treating Fields (TTFields) devices aimed at treating solid tumor cancers [1] - The company currently markets two products, including Optune Gio, which is specifically designed for the treatment of certain types of cancers [1] Investment Insights - The Stock Research Platform (SRP) is actively screening the market for companies like NovoCure that possess a strong balance sheet and a sustainable growth pathway, indicating potential for significant upside with limited downside risk [1]

NovoCure (NasdaqGS:NVCR) FY Conference December 02, 2025 11:30 AM ET Company ParticipantsBill Doyle - Executive ChairmanConference Call ParticipantsJason Bednar - Managing Director and Senior Research AnalystJason BednarAll right, when we get started, thanks everyone for joining here today. I'm Jason Bednar. I cover med tech here at Piper. Our next fireside chat is with NovoCure. Very happy to have with us today Executive Chairman, Bill Doyle. Also have, Head of IR, Adam Daney, in the audience here. Thanks ...

Summary of Novocure's Presentation at Jefferies 2025 Global Healthcare Conference Company Overview - **Company**: Novocure - **Focus**: Development and commercialization of Tumor Treating Fields (TTFields), an innovative cancer therapy utilizing electric fields to disrupt cancer cell division and induce immunogenic cell death [3][4] Core Insights and Mechanism of Action - **Mechanism**: TTFields selectively target cancer cells by exploiting their electrical properties, allowing for a multifaceted approach to treatment [3][4] - **Combination Therapy**: TTFields can be combined with other systemic therapies without additive toxicity, enhancing treatment efficacy [4] Product Delivery and Revenue Model - **Device Description**: TTFields are delivered via a medical device consisting of an electric field generator and transducer arrays, which can be used at home [5][6] - **Revenue Model**: The company operates on a recurring revenue model by charging a monthly fee for the therapy device [6] Market Presence and Growth - **Established Market**: Novocure has a strong foundation in glioblastoma (GBM) with an annual run rate exceeding $600 million, recognized as the standard of care in multiple countries [9][10] - **Geographical Expansion**: The company has expanded its market presence to Germany, Japan, France, and Spain, with plans for further growth in major markets [7][10] Upcoming Product Launches - **New Indications**: Novocure plans to launch TTFields for non-small cell lung cancer (NSCLC), locally advanced pancreatic cancer, and brain metastases, aiming for four products on the market by the end of 2026 [8][14][27] - **Clinical Data**: Positive clinical data supports the efficacy of TTFields in various cancers, showing significant survival benefits [11][12][13] Financial Investments and R&D - **R&D Investment**: Over the past five years, Novocure has invested $1 billion in research and development to advance its TTFields platform [10] - **Future Catalysts**: The company anticipates a catalyst-rich year ahead with multiple data readouts and product launches expected in 2026 [19][27] Challenges and Strategic Focus - **Market Competition**: The launch of TTFields in the NSCLC market has faced challenges due to competition with established drug therapies [15][18] - **Reimbursement Strategy**: Novocure is navigating the reimbursement landscape, with expectations of a year for commercial payers and two years for Medicare coverage [31][32] Conclusion - **Vision**: Novocure aims to transform cancer treatment by providing innovative therapies that extend survival and improve quality of life for patients with aggressive cancers [28][30] - **Commitment**: The company is dedicated to advancing its pipeline and enhancing treatment options for patients, leveraging its unique technology and clinical data [28][34]

Core Insights - Investing in healthcare stocks can leverage long-term trends in a rapidly evolving industry, particularly for those with a 40-year investment horizon [1] - Identifying companies with strong, innovative pipelines and durable market demand is crucial for successful investment in healthcare [1] Company Overview: NovoCure - NovoCure is a pioneer in Tumor Treating Fields (TTFields), a unique therapy that disrupts cancer cell division using low-intensity electric fields, offering advantages over traditional treatments [4] - The company is currently approved for treating glioblastoma (GBM) and malignant pleural mesothelioma, with potential to expand into a wide range of solid tumors, representing significant growth opportunities [5] - NovoCure's core GBM business has shown consistent patient and revenue growth, with projected annual revenue of $605.2 million for 2024, reflecting a 19% increase from 2023 [6] - The company is expanding internationally, with new coverage decisions and product launches in markets such as Japan, Germany, and France, aiming to evolve into a platform therapy company with four cancer indications by the end of 2026 [6] - Despite operating at a net loss due to high R&D and marketing costs, NovoCure maintains a strong cash and short-term investments balance of over $1 billion [7] - Revenue growth of 8% was reported in the third quarter of 2025, indicating ongoing business development [7] Investment Considerations - NovoCure represents a high-risk but potentially high-reward investment opportunity due to its innovative technology [8] - The company faces challenges but has a robust business model that could lead to sustained long-term revenue growth [8]

Core Insights - NovoCure reported revenue of $167.2 million for the quarter ended September 2025, reflecting a year-over-year increase of 7.8% and a positive surprise of 5.76% over the Zacks Consensus Estimate of $158.1 million [1] - The company's EPS was -$0.33, which is a decline from -$0.28 in the same quarter last year, but it exceeded the consensus estimate of -$0.42 by 21.43% [1] Financial Performance - The revenue growth of 7.8% indicates a solid performance compared to the previous year [1] - The EPS surprise of +21.43% suggests better-than-expected performance in terms of profitability [1] Geographic Revenue Breakdown - Revenue from Greater China was $5.6 million, surpassing the average estimate of $3.65 million [4] - Revenue from Japan reached $9.39 million, slightly above the average estimate of $9.12 million [4] - Revenue from the United States was $96.61 million, exceeding the average estimate of $95.13 million [4] Stock Performance - NovoCure's shares have returned -3.6% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company reported net revenues of $167 million for Q3 2025, an increase of 8% year-over-year, primarily driven by a 5% growth in active GBM patients [31][32] - Gross margin for the quarter was 73%, reflecting a reduction due to the global rollout of HFE arrays and increased tariffs [31][32] - The net loss for the quarter was $37 million, with a loss per share of $0.33, while adjusted EBITDA was negative $3 million, ahead of internal plans [33][34] Business Line Data and Key Metrics Changes - The GBM business saw a patient count increase to 4,277, with growth contributions from France (27%), Japan (8%), and Germany (7%) [6][31] - Non-small cell lung cancer (NSCLC) launch was behind expectations, ending Q3 with only 100 patients on therapy, 94 in the U.S. and 6 in Germany [8][31] Market Data and Key Metrics Changes - The company received a positive national coverage decision from the Spanish Ministry of Health, expecting Spain to deliver annual net revenue approximately half that of France at maturity [6] - The U.S. active patient count for GBM remained flat compared to Q3 2024, indicating a need for improved patient outreach [7] Company Strategy and Development Direction - The company aims to treat four cancer indications by the end of 2026, focusing on profitability and disciplined investments to strengthen its product portfolio [5][14] - Upcoming launches include pancreatic cancer and brain metastases, leveraging existing infrastructures from the GBM and lung cancer initiatives [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the NSCLC launch, emphasizing the need for education and evidence generation to drive adoption [10][86] - The company remains committed to achieving profitability by 2027, with expected revenues from new indications contributing to this goal [33][77] Other Important Information - The company has a cash and investment balance of $1.034 billion, with plans to retire $561 million in convertible notes [34] - The PANOVA-3 trial results were positively received, and the company anticipates FDA approval for pancreatic cancer treatment by mid-next year [16][19] Q&A Session Summary Question: Can you provide insights on the lung cancer launch in Germany and Japan? - Management indicated that it is still early in the launch phase in Germany, while Japan presents a different market dynamic with a higher prevalence of lung cancer and a more favorable physician attitude towards device-based therapies [41][42] Question: What are the expectations for commercial reimbursement and NCCN guidelines? - Management reported that commercial reimbursement is progressing well, with expectations for Medicare reimbursement to follow, which is crucial for broader adoption [49][50] Question: What were the initial expectations for the lung cancer launch? - Management refrained from disclosing specific internal expectations but acknowledged that the ramp-up is slower than anticipated [54] Question: Can you clarify the gross margin trajectory? - Management expects gross margins to recover to the mid-70% range post-launch, with fluctuations during the transition period as new indications are introduced [70][71]

Novocure Q3 2025 earnings Thursday, October 30, 2025 Confidential © 2024 © 2025 NovocuNovocu re GmbH re GmbH 1 forward -looking statements In addition to historical facts or statements of current condition, this presentation may contain forward - looking statements. Fo rward - looking statements provide Novocure's current expectations or forecasts of future events. These may include statements regarding anticipated scientific pro gress on its research programs, clinical trial progress, development of potent ...

Financial Performance - For the three and nine months ended September 30, 2025, the company's net revenues were $167.2 million and $481.0 million, respectively[89]. - The net loss for the three and nine months ended September 30, 2025 was $37.3 million and $111.7 million, respectively, with an accumulated deficit of $1,265.9 million as of September 30, 2025[89]. - Net revenues increased by 8% to $167.2 million for the three months ended September 30, 2025, compared to $155.1 million for the same period in 2024[105]. - Financial income decreased by 43% to $6.0 million for the three months ended September 30, 2025, from $10.5 million in the same period in 2024[114]. - Income taxes decreased by 19% to $7.2 million for the three months ended September 30, 2025, from $9.0 million for the same period in 2024[115]. - Adjusted EBITDA decreased to a loss of $3.0 million for the three months ended September 30, 2025, from a profit of $1.7 million for the same period in 2024[118]. - Cash, cash equivalents, and short-term investments increased by $73.6 million to $1,033.5 million as of September 30, 2025, compared to $959.9 million at December 31, 2024[121]. - Net cash used in operating activities increased by $8.1 million to $31.0 million for the nine months ended September 30, 2025, compared to $22.9 million for the same period in 2024[123]. - Net cash provided by investing activities was $100.9 million for the nine months ended September 30, 2025, compared to $118.0 million used in investing activities for the same period in 2024[125]. - Net cash provided by financing activities was $108.2 million for the nine months ended September 30, 2025, compared to $87.6 million for the same period in 2024[126]. Clinical Trials and Product Development - The company presented positive results from the phase 3 PANOVA-3 clinical trial, showing a median overall survival of 16.2 months for patients treated with TTFields therapy compared to 14.2 months in the control arm[83]. - In the METIS clinical trial, patients treated with TTFields therapy exhibited a 28% risk reduction in intracranial progression, with a median time to progression of 15.0 months compared to 7.5 months for supportive care alone[83]. - The company terminated the Phase 2 LUNAR-4 trial, opting to utilize real-world evidence instead of an interventional clinical study for metastatic NSCLC[85]. - The company continues to expand its clinical pipeline, with ongoing trials for TTFields therapy in various solid tumor indications, including GBM and pancreatic cancer[84]. - The company anticipates filing the third module of the PMA application for Optune Mya before the end of 2025, pending resolution of FDA questions[84]. Regulatory and Market Access - The company is actively pursuing coverage policies with payers to expand access to Optune Lua for patients with NSCLC and MPM, billing and seeking reimbursement on an individual case basis[82]. - The company has received regulatory approval for Optune Lua in multiple countries, including the U.S., EU, and Japan, for various cancer treatments[79][80]. Operational Expenses - Cost of revenues increased by 26% to $44.7 million for the three months ended September 30, 2025, primarily due to a 7% growth in active patients and higher array costs[107]. - Gross margin decreased to 73% for the three months ended September 30, 2025, down from 77% in the same period in 2024, attributed to increased costs[109]. - Research, development, and clinical study expenses rose by 4% to $54.0 million for the three months ended September 30, 2025, driven by product development and regulatory expenses[110]. - General and administrative expenses increased by 15% to $45.9 million for the three months ended September 30, 2025, compared to $40.1 million in 2024[110]. - Total operating expenses for the three months ended September 30, 2025, were $158.5 million, a 4% increase from $151.8 million in 2024[110]. - Sales and marketing expenses decreased by 2% to $58.5 million for the three months ended September 30, 2025, compared to $59.8 million for the same period in 2024[111]. Financing and Credit Facilities - Novocure Luxembourg S.a.r.l. entered into a new five-year senior secured credit facility of up to $400.0 million[130]. - The initial term loan (Tranche A Loan) of $100.0 million was funded on May 1, 2024[130]. - The company can draw an additional $100.0 million (Tranche B Loan) by June 30, 2025, subject to conditions including trailing net revenues exceeding $575.0 million[130]. - The company has the option to draw another $100.0 million (Tranche C Loan) by December 31, 2025, contingent on positive results from the PANOVA-3 phase 3 clinical trial or trailing net revenues exceeding $625.0 million[130]. - The interest rate on outstanding term loans is 6.25% plus the three-month SOFR, with a 3.25% floor[130]. - As of September 30, 2025, the company had borrowed a total of $200.0 million from Tranche A and Tranche B Loans[132]. - The company is required to maintain trailing four quarters of net revenue of at least $500.0 million if Tranche C and/or Tranche D Loans are funded[131]. - Principal repayments will commence in Q3 2027, with the final payment due on the fifth anniversary of the Tranche A Funding Date[130]. Other Financial Information - There have been no material changes in contractual obligations or off-balance sheet arrangements since the 2024 10-K[133][134]. - The company does not currently have any off-balance sheet arrangements as defined under SEC rules[134].

Financial Performance - Quarterly net revenues were $167.2 million, an increase of 8% year-over-year, driven by active patient growth and $3.3 million in exchange rate benefits [2]. - Gross margin for the quarter was 73%, down from 77% in the prior year, primarily due to costs associated with new product rollouts and increased tariffs [2]. - Net loss for the quarter was $37.3 million, with a loss per share of $0.33 [5]. - Net loss for the three months ended September 30, 2025, was $37,270,000, a 22% increase compared to a net loss of $30,570,000 in the same period of 2024 [17]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(17,959,000), a significant improvement compared to $(1,783,000) in 2024, reflecting a 907% change [17]. Patient Statistics - As of September 30, 2025, there were 4,416 active patients on Tumor Treating Fields therapy globally [5]. - Optune Gio prescriptions increased by 7% to 1,675, with 4,277 active patients on therapy, a 5% increase year-over-year [5]. - Active patients on therapy as of September 30, 2025, totaled 4,416, an increase from 4,113 in 2024 [18]. - The number of active patients in the United States was 2,280, slightly down from 2,200 in the previous year [18]. - The company had 2,136 active patients in international markets as of September 30, 2025, compared to 1,913 in 2024, indicating growth in international adoption [18]. Expenses - Research, development, and clinical study expenses were $54.0 million, a 4% increase from the same period in 2024, driven by product development and regulatory expenses [2]. - Sales and marketing expenses decreased by 2% to $58.5 million, while general and administrative expenses increased by 15% to $45.9 million [5]. - The company reported a 49% increase in depreciation and amortization expenses for the three months ended September 30, 2025, totaling $3,663,000 compared to $2,458,000 in 2024 [17]. Assets and Liabilities - Cash, cash equivalents, and short-term investments totaled $1,033.5 million as of September 30, 2025 [5]. - As of September 30, 2025, total assets amounted to $1,361,194,000, an increase from $1,240,784,000 as of December 31, 2024 [16]. - Total current liabilities increased to $776,006,000 from $756,376,000 year-over-year [16]. - Total long-term liabilities rose to $243,855,000 from $124,229,000 year-over-year, primarily due to an increase in the senior secured credit facility [16]. - The total shareholders' equity decreased to $341,333,000 from $360,179,000 as of December 31, 2024 [16]. Regulatory and Clinical Developments - Novocure submitted a premarket approval application for Tumor Treating Fields therapy in pancreatic cancer, currently under review by the FDA [1]. - Anticipated clinical milestones include a PMA application for brain metastases from NSCLC in Q4 2025 and topline data from the Phase 2 PANOVA-4 trial expected in Q1 2026 [11]. Treatment Information - Optune Lua treatment may be affected by underlying serious skin conditions; consultation with a doctor is advised [28]. - Common side effects of Optune Lua include dermatitis, muscle pain, fatigue, and hair loss, with occurrences of anemia and respiratory infections [29]. - Additional adverse effects may include skin irritation, allergic reactions, and local infections at the array contact sites [30]. - For comprehensive information on the device's indications and precautions, users are directed to visit OptuneLua.com [31].