NovoCure Ltd SEC 10-Q Report

NovoCure Ltd, a global oncology company specializing in the development and commercialization of innovative therapies for the treatment of solid tumors, has released its Form 10-Q report for the first quarter of 2025. The report highlights significant financial and operational achievements, driven by increased patient growth, improved reimbursement rates, and strategic expansions in key markets.

Financial Highlights

• Net Revenues: $154.994 million, marking a 12% increase from the same period in 2024. This growth is attributed to active patient growth and reimbursement improvements across various geographic markets.
• Gross Profit: $116.473 million, with a gross margin of 75%, slightly down from 76% in the prior year period. The decrease is due to higher average array costs and the completion of Zai upfront license and milestone fees recognition.
• Operating Income (Loss): $(37.865) million, an improvement from $(41.520) million in the prior year period. This was driven by revenue growth, offset by increased operating expenses.
• Net Income (Loss): $(34.319) million, compared to $(38.760) million in the prior year period, reflecting improved revenue performance and cost management.
• Basic and Diluted Net Income (Loss) Per Ordinary Share: $(0.31), compared to $(0.36) in the prior year period, indicating a reduction in net loss per share.

Business Highlights

• Revenue Segments: The company's net revenues are primarily derived from patients using its products, Optune Gio and Optune Lua, in active markets. The majority of revenues come from the use of Optune Gio in the U.S., Germany, France, and Japan. Recognized revenue from Optune Lua in the quarter was $1.5 million, including $0.8 million from MPM and $0.7 million from NSCLC.
• Geographical Performance: In EMEA, revenue growth was driven by a $7.4 million increase in France, a $3.0 million increase in Germany due to active patient and approval rate increases, and a $3.0 million increase from other European active markets due to active patient growth and receipt of aged collections. In the U.S., net revenues increased by $2.6 million compared to the same period in 2024.
• Sales Units: The number of active patients on therapy is a principal revenue driver. As of March 31, 2025, there were 4,268 active patients, an increase from 3,845 active patients as of March 31, 2024. Prescriptions received in the period totaled 1,735, compared to 1,643 in the same period in 2024.
• New Product Launches: The company launched new arrays in the U.S. and initiated the launch of Optune Lua for NSCLC in Germany, preparing for further market expansion.
• New Production Launches: The company is in the process of adding production capacity in Mexico and Ireland to increase the resilience of its supply network and optimize cost structures.
• Future Outlook: The company intends to submit marketing applications based on the results of the METIS and PANOVA-3 trials. It is also preparing for the launch of Optune Lua for NSCLC in Germany and is actively pursuing contracts with payers to expand access to Optune Lua for patients with NSCLC and MPM.

SEC Filing: NovoCure Ltd [ NVCR ] - 10-Q - Apr. 24, 2025