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]

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]

Financial Data and Key Metrics Changes - The company reported net revenues of $159 million, an increase of 6% from the second quarter of the previous year, driven by a 7% year-over-year active patient growth in the GBM franchise [28][34] - Gross margin for the second quarter was 74%, down from 77% in the same quarter last year, primarily due to the rollout of the HIV rate and the continued launch of non-small cell lung cancer [30][34] - The net loss for the quarter was $40 million, with a loss per share of $0.36, and adjusted EBITDA was negative $10 million [34][35] Business Line Data and Key Metrics Changes - The company received 121 prescriptions for non-small cell lung cancer in the second quarter, with 106 in the U.S. and 15 in Germany, leading to $2.4 million in net revenues from OptuneLua [15][16] - The active patient count for Optune GEO reached 4,194, a 7% increase compared to the previous year, with all key markets experiencing double-digit growth [23][26] - The METIS trial demonstrated a 28% risk reduction in time to intracranial progression for patients treated with TT Fields therapy compared to supportive care alone [12] Market Data and Key Metrics Changes - The company is actively engaged in discussions with Japanese regulators for the launch of OptuneLua for non-small cell lung cancer, anticipating approval soon [21] - The company has seen promising feedback from peer-to-peer conversations with physicians, indicating a healthy mix of new and repeat prescribers for Tumor Treating Fields therapy [19][20] Company Strategy and Development Direction - The company aims to extend survival for patients with aggressive forms of cancer through the development of Tumor Treating Fields therapy, with ongoing efforts to gain approvals in new indications, particularly pancreatic cancer [5][11] - The company is focused on execution and has reached multiple milestones, including the launch of OptuneLua and the advancement of clinical trials for new indications [15][26] - The company plans to file PMA submissions for pancreatic cancer and brain metastases from non-small cell lung cancer in the near future, with potential approvals and launches expected in 2026 [13][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing launch of OptuneLua and the potential for significant growth in the coming years, particularly in the U.S. and Japan [21][35] - The management highlighted the importance of real-world evidence and peer-to-peer connections in driving adoption of Tumor Treating Fields therapy among physicians [19][20] - The company is committed to balancing investments in launches and future innovations while aiming for profitability, with a target revenue level of around $750 million to achieve adjusted EBITDA profitability [74] Other Important Information - The company is working on minimizing tariff exposure related to imports, with an estimated full-year P&L impact of up to $7 million [31] - The company has a cash and investment balance of $912 million, which is expected to support the retirement of convertible notes and bridge to new revenue streams [34][35] Q&A Session Summary Question: Why was the growth in non-small cell lung cancer prescriptions lower in Q2 compared to Q1? - Management indicated that the launch is progressing as expected, with a consistent ability to educate physicians and build volume [40][42] Question: How different were the METIS numbers disclosed compared to ASCO last year? - The management explained that the METIS trial's endpoint was progression, and the final data set confirmed statistical significance, which was a common practice in trials [46] Question: What is the path to profitability and timeframe? - The management stated that they are on track with expectations and aim for profitability at a revenue level of around $750 million, but did not provide a specific timeframe [74] Question: Are there plans to pursue combinations with other chemotherapy regimens for pancreatic cancer? - The management confirmed that they are actively discussing new combinations and will have data from the PANOVA-four trial in the first half of next year [75][76] Question: How does the NCCN guideline ranking influence commercial coverage? - Management noted that any improvement in ranking is helpful, and they are eager to see updated guidelines published later this fall [57] Question: Does the $94 million in U.S. sales include OptuneLua revenue? - Management confirmed that the $94 million includes all revenue from both Optune GO and Optune Lua [94]