NovoCure Limited (NASDAQ:NVCR) Q1 2025 Earnings Conference Call April 24, 2025 8:00 AM ET Company Participants Ingrid Goldberg - IR Bill Doyle - Executive Chairman Ashley Cordova - CEO Christoph Brackmann - CFO Frank Leonard - EVP and President, NovoCure Oncology Nicolas Leupin - CMO Conference Call Participants Larry Biegelsen - Wells Fargo Jason Bednar - Piper Sandler Vijay Kumar - Evercore ISI Jessica Fye - JPMorgan Emily Bodnar - H.C. Wainwright Operator Good day, and thank you for standing by. Welcome ...

NovoCure posted stronger-than-expected Q1 2025 results, driven by revenue and GAAP earnings surpassing estimates. NovoCure (NVCR 7.34%), a leader in oncology treatments using Tumor Treating Fields (TTFields) therapy, released its first-quarter results on April 24, 2025. The company reported notable gains with revenue rising to $155 million (GAAP) in Q1 2025, surpassing Wall Street's estimate of $146 million. The first quarter was marked by considerable revenue growth for NovoCure. GAAP revenue reached $155 ...

© 2025 Novocure GmbH 2 Confidential © 2024 Novocu © 2025 re GmbH Novocure GmbH 1 © 20254 Novocure GmbH GmbH 4 2024 achievements and 2025 milestones ahead | | DRIVING COMMERCIAL | ADVANCING | DELIVERING | | --- | --- | --- | --- | | | ADOPTION | CLINICAL PIPELINE | PRODUCT INNOVATION | | METIS met primary endpoint | 2024 Generated $605 million | | New array FDA approved | | PANOVA-3 met primary endpoint | ACHIEVEMENTS in net revenues | | and rolling-out globally | | LUNAR-2 and KEYNOTE D58 | NSCLC PMA approv ...

NovoCure (NVCR) Q1 2025 Earnings Call April 24, 2025 08:00 AM ET Company Participants Ingrid Goldberg - Vice President of Finance and Investor RelationsWilliam Doyle - Executive ChairmanAshley Cordova - CEOChristoph Brackmann - CFOFrank Leonard - Executive VP & President of Novocure OncologyYiwen Zhang - Equity Research AssociateVijay Kumar - Senior Managing DirectorEmily Bodnar - Vice President of Equity Research Conference Call Participants Lawrence Biegelsen - AnalystJason Bednar - Senior Research Analys ...

Novocure Reports First Quarter 2025 Financial Results Quarterly net revenues of $155 million, up 12% year-over-year, with 4,268 active patients on therapy as of March 31, 2025 Results from Phase 3 PANOVA-3 trial in pancreatic cancer accepted as late-breaking abstract for presentation at 2025 American Society of Clinical Oncology Annual Meeting CE Mark approval received for Optune Lua for use concurrently with immune checkpoint inhibitor or docetaxel in adult patients with metastatic NSCLC who have progresse ...

Financial Performance - For the three months ended March 31, 2025, the company's net revenues were $155.0 million, compared to $138.5 million for the same period in 2024, representing a year-over-year increase of approximately 11.5%[83][93] - The net loss for the three months ended March 31, 2025, was $34.3 million, a slight improvement from a net loss of $38.8 million in the same period of 2024[83][93] - The company reported a gross profit of $116.5 million for the three months ended March 31, 2025, up from $104.8 million in the prior year, indicating a gross margin improvement[93] - Net revenues increased by 12% to $155.0 million for the three months ended March 31, 2025, compared to $138.5 million for the same period in 2024, driven by an 11% growth in active patients and reimbursement improvements[98] - Gross margin decreased to 75% for the three months ended March 31, 2025, down from 76% in the same period in 2024, impacted by increased costs and the completion of Zai upfront license recognition[101] - Total operating expenses rose by 5% to $154.3 million, with research and development expenses increasing by 4% to $53.8 million due to ramp-up of clinical trials[103] - Adjusted EBITDA decreased by 8% to $(5.0) million for the three months ended March 31, 2025, primarily driven by increased operating expenses despite revenue growth[108] - Net cash used in operating activities increased by 13% to $(35.7) million for the three months ended March 31, 2025, compared to $(31.6) million in the same period in 2024[111] - Cash, cash equivalents, and short-term investments totaled $929.1 million as of March 31, 2025, a decrease of $30.7 million from $959.9 million at December 31, 2024[110] - Financial income decreased by 23% to $7.6 million for the three months ended March 31, 2025, primarily due to higher interest expenses related to the senior secured credit facility[105] - Income taxes decreased by 43% to $4.0 million for the three months ended March 31, 2025, driven by increased tax benefits from share-based compensation deductions[105] - Net cash provided by financing activities was $5.2 million for the three months ended March 31, 2025, compared to $0.2 million for the same period in 2024[115] Clinical Trials and Product Development - The Phase 3 METIS trial demonstrated a statistically significant improvement in time to intracranial progression for patients treated with TTFields therapy compared to supportive care alone[76][78] - The Phase 3 PANOVA-3 trial showed a statistically significant improvement in overall survival for patients treated with TTFields therapy in combination with gemcitabine and nab-paclitaxel[77][78] - The company anticipates submitting marketing applications to regulators based on the results of the METIS and PANOVA-3 trials[78] Patient Metrics - The number of active patients on therapy is a key revenue driver, with prescriptions received serving as a leading indicator of demand for Optune Gio and Optune Lua[94] - Active patients at period end reached 4,268, with 2,231 in the United States and 2,037 in international markets, reflecting a growth from 3,845 in the previous year[96] Costs and Expenses - Cost of revenues increased by 14% to $38.5 million for the three months ended March 31, 2025, primarily due to an 11% growth in active patients and higher average array costs[99] Debt and Financing - A new five-year senior secured credit facility of up to $400.0 million was entered into on May 1, 2024, with an initial term loan of $100.0 million funded on the same date[119] - The company has the option to draw an additional $100.0 million (Tranche C Loan) if trailing net revenues exceed $575.0 million or if positive results are received from the PANOVA-3 phase 3 clinical trial[120] - The company can draw another $100.0 million (Tranche D Loan) if trailing net revenues exceed $625.0 million or if FDA approval is received for its Tumor Treating Fields device for pancreatic cancer[120] - The outstanding term loans under the Loan Agreement will bear interest at an annual rate of 6.25% plus the three-month SOFR, with a 3.25% floor[120] - The company irrevocably elected to settle all conversions of Notes by a combination of cash and ordinary shares, with cash up to $1,000 per $1,000 principal amount of Notes[117] - The initial conversion rate of the convertible notes is 5.9439 ordinary shares per $1,000 principal amount, equivalent to approximately $168.24 per ordinary share[116] - The company is required to maintain at least $500.0 million in trailing four quarters of net revenue if Tranche C and/or Tranche D Loans are funded[120] Regulatory and Market Conditions - The U.S. increased tariff rates on imported goods, which could potentially increase import duties by up to $11 million in 2025 if tariffs return to pre-April rates[86][87] - The company is actively pursuing contracts with payers to expand access to Optune Lua for patients with NSCLC and MPM[74] Other Financial Information - The company has an accumulated deficit of $1,188.4 million as of March 31, 2025[83] - There have been no material changes in contractual obligations and commitments from the information disclosed in the 2024 10-K[121] - The company currently has no off-balance sheet arrangements as defined under SEC rules[122]

Cancer-focused biotech NovoCure (NVCR -4.07%) was the focus of a stock price target cut on Wednesday, and investors weren't particularly happy about it.They expressed their displeasure by selling out of their positions, to the point where the company's stock was down by nearly 5% in mid-afternoon trading. As such, it was doing notably worse than the S&P 500 index, which was 0.9% in the red at that point.Reaching for the scalpelThe analyst behind the reduction was Wedbush's David Nierengarten, who now believ ...

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Core Insights - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries [1] - He founded F9 Finance to assist finance professionals and small business owners in understanding finance and accounting concepts [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and dividends [1] Industry Insights - The finance and accounting sectors are increasingly recognizing the importance of cash flow for both companies and investors [1] - There is a growing trend of small businesses seeking guidance from experienced finance professionals to enhance their financial management [1]

After working as a Registered Nurse for several years, I transitioned into financial analysis, earning my MBA and developing expertise in healthcare & technology investments. Since 2017, I've published investment analyses on Seeking Alpha, focusing on thorough valuation modeling. My approach centers on examining core assumptions that drive stock valuations, particularly through detailed discounted cash flow analysis. I provide readers with various scenarios to help them understand potential outcomes. The pr ...