NovoCure Limited (NVCR) 10-Q 2 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 25, 2019
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	NVCR
Entity Registrant Name	Novocure Ltd
Entity Central Index Key	0001645113
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		95,766,474

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 152,067	$ 140,622
Short-term investments	104,535	105,256
Restricted cash	2,094	2,134
Trade receivables	39,220	36,523
Receivables and prepaid expenses	13,619	14,279
Inventories	24,138	22,555
Total current assets	335,673	321,369
LONG-TERM ASSETS:
Property and equipment, net	8,421	8,442
Field equipment, net	7,266	6,924
Right-of-use assets, net	13,920	0
Other long-term assets	4,975	3,058
Total long-term assets	34,582	18,424
TOTAL ASSETS	370,255	339,793
CURRENT LIABILITIES:
Trade payables	29,943	26,708
Other payables, lease liabilities and accrued expenses	41,005	37,852
Total current liabilities	70,948	64,560
LONG-TERM LIABILITIES:
Long-term loan, net of discount and issuance costs	149,305	149,268
Deferred revenue	9,407	9,929
Employee benefit liabilities	2,823	2,683
Long-term lease liabilities	11,015	0
Other long-term liabilities	363	1,094
Total long-term liabilities	172,913	162,974
TOTAL LIABILITIES	243,861	227,534
COMMITMENTS AND CONTINGENCIES	0	0
SHAREHOLDERS' EQUITY:
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 95,692,797 shares and 93,254,185 shares at March 31, 2019 (unaudited) and December 31, 2018, respectively	0	0
Additional paid-in capital	783,941	757,314
Accumulated other comprehensive income (loss)	(1,742)	(1,400)
Retained earnings (accumulated deficit)	(655,805)	(643,655)
Total shareholders' equity	126,394	112,259
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 370,255	$ 339,793

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	95,692,797	93,254,185
Common stock, shares outstanding	95,692,797	93,254,185

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Income Statement [Abstract]
Net revenues	$ 73,309	$ 52,125	$ 248,069
Cost of revenues	19,814	18,238	80,048
Gross profit	53,495	33,887	168,021
Operating costs and expenses:
Research, development and clinical trials	17,042	11,104	50,574
Sales and marketing	22,333	18,135	77,663
General and administrative	20,238	17,325	73,456
Total operating costs and expenses	59,613	46,564	201,693
Operating income (loss)	(6,118)	(12,677)	(33,672)
Financial expenses (income), net	2,371	4,853	12,270
Income (loss) before income taxes	(8,489)	(17,530)	(45,942)
Income taxes	3,661	3,194	17,617
Net income (loss)	$ (12,150)	$ (20,724)	$ (63,559)
Basic and diluted net income (loss) per ordinary share	$ (0.13)	$ (0.23)	$ (0.69)
Weighted average number of ordinary shares used in computing basic and diluted net income (loss) per share	94,811,282	89,985,612	91,828,043

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (12,150)	$ (20,724)	$ (63,559)
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments	(261)	10	27
Pension benefit plan	(81)	5	(84)
Total comprehensive income (loss)	$ (12,492)	$ (20,709)	$ (63,616)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands		Total	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings (Accumulated Deficit)
Balance at Dec. 31, 2017		$ 113,564		$ 697,165	$ (1,343)	$ (582,258)
Balance (in shares) at Dec. 31, 2017			89,478,032
Share-based compensation to employees		8,520		8,520
Exercise of options and warrants and vested RSUs		2,581		2,581
Exercise of options and warrants and vested RSUs (in shares)			920,869
Cumulative effect adjustment on retained earnings (*)	[1]	2,162				2,162
Other comprehensive income (loss), net of tax benefit		15			15
Net income (loss)		(20,724)				(20,724)
Balance at Mar. 31, 2018		106,118		708,266	(1,328)	(600,820)
Balance (in shares) at Mar. 31, 2018			90,398,901
Balance at Dec. 31, 2017		113,564		697,165	(1,343)	(582,258)
Balance (in shares) at Dec. 31, 2017			89,478,032
Net income (loss)		(63,559)
Balance at Dec. 31, 2018		112,259		757,314	(1,400)	(643,655)
Balance (in shares) at Dec. 31, 2018			93,254,185
Share-based compensation to employees		9,649		9,649
Exercise of options and warrants and vested RSUs		16,978		16,978
Exercise of options and warrants and vested RSUs (in shares)			2,438,612
Other comprehensive income (loss), net of tax benefit		(342)			(342)
Net income (loss)		(12,150)				(12,150)
Balance at Mar. 31, 2019		$ 126,394		$ 783,941	$ (1,742)	$ (655,805)
Balance (in shares) at Mar. 31, 2019			95,692,797
[1]	Resulting from the adoption of ASC 606.

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement Of Stockholders Equity [Abstract]
Other comprehensive income (loss), tax benefit	$ 11	$ 5

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ (12,150)	$ (20,724)	$ (63,559)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,929	2,203	9,006
Asset write-downs and impairment of field equipment	75	49	407
Share-based compensation to employees	9,649	8,520	39,846
Decrease (increase) in trade receivables	(2,697)	(1,672)	(4,151)
Amortization of discount (premium)	(578)	2,427	1,022
Decrease (increase) in receivables and prepaid expenses	661	(1,834)	(6,174)
Decrease (increase) in inventories	(1,583)	1,638	(529)
Decrease (increase) in other long-term assets	(1,899)	(620)	(949)
Decrease (increase) in right of use assets, net	1,813
Increase (decrease) in trade payables	3,235	2,213	9,503
Increase (decrease) in other payables and accrued expenses	(989)	(8,300)	4,210
Increase (decrease) in employee benefit liabilities, net	43	76	133
Increase (decrease) in long-term lease liability	(577)
Increase (decrease) in other long-term liabilities	(1,247)	(800)	9,370
Net cash provided by (used in) operating activities	(4,315)	(16,824)	(1,865)
Cash flows from investing activities:
Purchase of property and equipment	(860)	(737)	(2,916)
Purchase of field equipment	(1,465)	(1,370)	(3,795)
Proceeds from maturity of short-term investments	105,661	45,000	255,000
Purchase of short-term investments	(104,325)	(44,750)	(253,782)
Net cash provided by (used in) investing activities	(989)	(1,857)	(5,493)
Cash flows from financing activities:
Proceeds from issuance of shares, net			1,835
Proceeds from long-term loan, net		149,150	149,150
Repayment of long-term loan		(100,000)	(100,000)
Repayment of other long-term loan	(8)	(17)	(84)
Exercise of options and warrants	16,978	2,581	18,468
Net cash provided by (used in) financing activities	16,970	51,714	69,369
Effect of exchange rate changes on cash and cash equivalents	(261)	10	27
Increase (decrease) in cash, cash equivalents and restricted cash	11,405	33,043	62,038
Cash, cash equivalents and restricted cash at beginning of period	142,756	80,718	80,718
Cash, cash equivalents and restricted cash at the end of the period	154,161	113,761	142,756
Cash paid during the period for:
Income taxes	3,033	3,758	20,350
Interest	3,379	$ 3,009	$ 13,334
Non-cash activities upon implementation of ASC-842:
Right of use assets obtained in exchange for lease obligations:	$ 15,733

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION Organization . NovoCure Limited (including its consolidated subsidiaries, the “Company”) was incorporated in the Bailiwick of Jersey and is principally engaged in the development, manufacture and commercialization of Optune for the treatment of solid tumors. The Company has regulatory approvals and clearances in certain countries for Optune to treat adult patients with glioblastoma (“GBM”). Financial statement preparation . The accompanying consolidated financial statements include the accounts of the Company and intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation for the periods presented. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 10-K”) filed with the Securities and Exchange Commission on February 28, 2019. The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2018 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below: Recently Adopted Accounting Pronouncements. In 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets. The new standard establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating. The standard is effective for interim and annual reporting periods beginning after December 15, 2018. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." This update provides an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. The Company adopted the new standard as of January 1, 2019 and it has also elected to adopt the package of practical expedients permitted in ASC 842. The consolidated financial statements for the three months ended March 31, 2019 are presented under the new standard, while comparative year and periods presented are not adjusted and continue to be reported in accordance with Topic 840, Leases.

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments	3 Months Ended
	Mar. 31, 2019
Cash Cash Equivalents And Short Term Investments [Abstract]
Cash, Cash equivalents and Short-Term investments	NOTE 2: CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents include items almost as liquid as cash, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. March 31, December 31, 2019 2018 Unaudited Audited Cash $ 9,104 $ 9,197 Money market funds 142,963 131,425 Total cash and cash equivalents $ 152,067 $ 140,622 The Company invests in marketable U.S. Treasury Bills (“T-bills”) that are classified as held-to-maturity securities. The amortized cost and recorded basis of the T-bills are presented as short-term investments. March 31, December 31, 2019 2018 Unaudited Audited Short-term investments $ 104,535 $ 105,256 The estimated fair value of the Company’s short-term investments as of March 31, 2019 and December 31, 2018 was $ 104,547 105,266

Inventories

Inventories	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	NOTE 3: INVENTORIES Inventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of March 31, 2019 and December 31, 2018, the Company’s inventories were composed of: March 31, December 31, 2019 2018 Unaudited Audited Raw materials $ 1,526 $ 870 Work in progress 8,176 8,667 Finished products 14,436 13,018 Total $ 24,138 $ 22,555

Commitments Rights of Use and C

Commitments Rights of Use and Contingent Liabilities	3 Months Ended
	Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments, Rights of Use and Contingent Liabilities	NOTE 4: COMMITMENTS, RIGHTS OF USE AND CONTINGENT LIABILITIES Operating Leases and Rights of Use. The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2029. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2022. Under ASU No. 2016-02, “Leases (Topic 842), all leases with durations greater than 12 months, including non-cancelable operating leases, are now recognized on the balance sheet. The aggregated present value of lease agreements, net of deferred rent, are recorded as a long-term asset titled right-of-use assets. The corresponding lease liabilities are split between other payables within current liabilities and long-term lease liabilities within long-term liabilities. The lease liabilities are presented without consideration for deferred rent. Upon implementation of ASC-842, effective January 1, 2019, the Company recorded an increase in right-of-use assets obtained in exchange for lease obligations of $15,733 on our opening balance sheet. Lease and rental payments for the three months ended March 31, 2019, totaled $1,740. Future minimum lease payments under non-cancelable operating leases as of March 31, 2019, are as follows: March 31, 2019 Unaudited Future minimum lease payments: 2019 (excluding the three months ended March 31, 2019) $ 3,216 2020 3,766 2021 3,475 2022 2,503 2023 1,655 Thereafter 3,258 Total future minimum lease payments $ 17,873 Less imputed interest (3,090 ) Net present value of future minimum lease payments $ 14,783 Presented as of March 31, 2019: Short-term lease liabilities $ 3,768 Long-term lease liabilities 11,015 Net present value of future minimum lease payments $ 14,783 Weighted average of remaining operating lease term 6.38 Weighted average of operating lease discount rate 7.46 % The right-of-use assets are presented net of $863 in deferred rents. Pledged deposits and bank guarantees. As of March 31, 2019 and December 31, 2018, the Company pledged bank deposits of $ 1,134 and $ 1,143 , respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained bank guarantees for the fulfillment of the Company’s lease and other contractual commitments of $ 1,294 and $ 1,299 , respectively

Share Capital

Share Capital	3 Months Ended
	Mar. 31, 2019
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
Share Capital	NOTE 5: SHARE CAPITAL In September 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”). Under the 2015 Plan, the Company can issue various types of equity compensation awards such as share options, restricted shares, performance shares, restricted stock units (“RSUs”), performance units, long-term cash awards and other share-based awards. Options granted under the 2015 Plan generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are cancelled or forfeited before expiration become available for future grants. RSUs granted under the 2015 Plan generally vest over a three-year period. RSUs granted under the 2015 Plan that are cancelled before expiration become available for future grants. As of March 31, 2019, 12,649,222 A summary of the status of the Company’s option plans as of March 31, 2019 and changes during the period then ended is presented below: Three months ended March 31, 2019 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 14,438,215 $ 13.56 Granted 751,471 47.04 Exercised (2,047,421 ) 8.38 Forfeited and cancelled (40,258 ) 14.47 Outstanding as of March 31, 2019 13,102,007 $ 16.29 Exercisable options 5,852,344 $ 12.79 For the three months, ended March 31, 2019, options to purchase 2,047,421 ordinary shares were exercised, resulting in the issuance of 2,047,421 ordinary shares. A summary of the status of the Company’s RSUs as of March 31, 2019 and changes during the period then ended is presented below: Three months ended March 31, 2019 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year 1,613,197 $ 14.04 Granted 486,506 47.04 Vested (391,191 ) 12.09 Forfeited and cancelled (3,837 ) 21.15 Unvested as of March 31, 2019 1,704,675 $ 23.89 In September 2015, the Company adopted an employee share purchase plan (“ESPP”) to encourage and enable eligible employees to acquire ownership of the Company’s ordinary shares purchased through accumulated payroll deductions on an after-tax basis. In the United States, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code and the provisions of the ESPP will be construed in a manner consistent with the requirements of such section. The Company began its offerings under the ESPP on August 1, 2016. As of March 31, 2019, 3,122,410 347,193 The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model, with the following underlying assumptions: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited Stock Option Plans Expected term (years) 6.23 6.25 5.50-6.25 Expected volatility 55% 55% 52%-55% Risk-free interest rate 2.40% 2.77% 2.70%-2.99% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 62% 53% 45%-53% Risk-free interest rate 2.51% 1.61% 1.61%-2.14% Dividend yield 0.00% 0.00% 0.00% The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2019 and 2018 and the year ended December 31, 2018 was: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited Cost of revenues $ 426 $ 164 $ 1,261 Research, development and clinical trials 1,188 906 4,709 Sales and marketing 1,962 1,436 7,393 General and administrative 6,073 6,014 26,483 Total share-based compensation expense $ 9,649 $ 8,520 $ 39,846

Supplemental Information

Supplemental Information	3 Months Ended
	Mar. 31, 2019
Geographic Areas Long Lived Assets [Abstract]
Supplemental Information	NOTE 6: SUPPLEMENTAL INFORMATION The Company operates in a single reportable segment. The following table presents long-lived assets by location: March 31, December 31, 2019 2018 Unaudited Audited United States $ 7,973 $ 8,289 Switzerland 2,939 2,513 Israel 2,428 2,236 Germany 958 1,054 Others 1,389 1,274 Total $ 15,687 $ 15,366 The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited United States $ 46,604 $ 37,802 $ 168,414 EMEA (*) 22,520 13,874 72,485 Japan 3,370 449 6,351 Greater China (1) 815 - 819 Total $ 73,309 $ 52,125 $ 248,069 (*) including Germany $ 21,287 $ 13,358 $ 67,849 (1) Reflects revenue recognized in accordance with a License and Collaboration Agreement between us and Zai Lab (Shanghai) Co., Ltd. (“Zai”), dated September 10, 2018, pursuant to which Zai is commercializing Optune in China, Hong Kong, Macau and Taiwan (“Greater China”). For additional information, see Note 12 to the Consolidated Financial Statements in our 2018 10-K.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements. In 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets. The new standard establishes a right-of-use model that requires a lessee to recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating. The standard is effective for interim and annual reporting periods beginning after December 15, 2018. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." This update provides an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. The Company adopted the new standard as of January 1, 2019 and it has also elected to adopt the package of practical expedients permitted in ASC 842. The consolidated financial statements for the three months ended March 31, 2019 are presented under the new standard, while comparative year and periods presented are not adjusted and continue to be reported in accordance with Topic 840, Leases.

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-Term Investments (Tables)	3 Months Ended
	Mar. 31, 2019
Cash Cash Equivalents And Short Term Investments [Abstract]
Summary of Cash and Cash Equivalents	Cash equivalents include items almost as liquid as cash, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. March 31, December 31, 2019 2018 Unaudited Audited Cash $ 9,104 $ 9,197 Money market funds 142,963 131,425 Total cash and cash equivalents $ 152,067 $ 140,622
Summary of Amortized Cost and Recorded Basis of T-bills in Short-Term Investments	The Company invests in marketable U.S. Treasury Bills (“T-bills”) that are classified as held-to-maturity securities. The amortized cost and recorded basis of the T-bills are presented as short-term investments. March 31, December 31, 2019 2018 Unaudited Audited Short-term investments $ 104,535 $ 105,256

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of March 31, 2019 and December 31, 2018, the Company’s inventories were composed of: March 31, December 31, 2019 2018 Unaudited Audited Raw materials $ 1,526 $ 870 Work in progress 8,176 8,667 Finished products 14,436 13,018 Total $ 24,138 $ 22,555

Commitments Rights of Use and_2

Commitments Rights of Use and Contingent Liabilities (Tables)	3 Months Ended
	Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Lease	Future minimum lease payments under non-cancelable operating leases as of March 31, 2019, are as follows: March 31, 2019 Unaudited Future minimum lease payments: 2019 (excluding the three months ended March 31, 2019) $ 3,216 2020 3,766 2021 3,475 2022 2,503 2023 1,655 Thereafter 3,258 Total future minimum lease payments $ 17,873 Less imputed interest (3,090 ) Net present value of future minimum lease payments $ 14,783 Presented as of March 31, 2019: Short-term lease liabilities $ 3,768 Long-term lease liabilities 11,015 Net present value of future minimum lease payments $ 14,783 Weighted average of remaining operating lease term 6.38 Weighted average of operating lease discount rate 7.46 %

Share Capital (Tables)

Share Capital (Tables)	3 Months Ended
	Mar. 31, 2019
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
Schedule of Stock Option Plans	A summary of the status of the Company’s option plans as of March 31, 2019 and changes during the period then ended is presented below: Three months ended March 31, 2019 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 14,438,215 $ 13.56 Granted 751,471 47.04 Exercised (2,047,421 ) 8.38 Forfeited and cancelled (40,258 ) 14.47 Outstanding as of March 31, 2019 13,102,007 $ 16.29 Exercisable options 5,852,344 $ 12.79
Schedule of RSU's	A summary of the status of the Company’s RSUs as of March 31, 2019 and changes during the period then ended is presented below: Three months ended March 31, 2019 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year 1,613,197 $ 14.04 Granted 486,506 47.04 Vested (391,191 ) 12.09 Forfeited and cancelled (3,837 ) 21.15 Unvested as of March 31, 2019 1,704,675 $ 23.89
Schedule of Fair Value Assumptions Used for All Equity Based Awards Estimated Using Black-Scholes Option Pricing Model	The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model, with the following underlying assumptions: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited Stock Option Plans Expected term (years) 6.23 6.25 5.50-6.25 Expected volatility 55% 55% 52%-55% Risk-free interest rate 2.40% 2.77% 2.70%-2.99% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 62% 53% 45%-53% Risk-free interest rate 2.51% 1.61% 1.61%-2.14% Dividend yield 0.00% 0.00% 0.00%
Schedule of Non-cash Share-based Compensation Expense Related to Company's Equity-Based Awards	The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2019 and 2018 and the year ended December 31, 2018 was: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited Cost of revenues $ 426 $ 164 $ 1,261 Research, development and clinical trials 1,188 906 4,709 Sales and marketing 1,962 1,436 7,393 General and administrative 6,073 6,014 26,483 Total share-based compensation expense $ 9,649 $ 8,520 $ 39,846

Supplemental Information (Table

Supplemental Information (Tables)	3 Months Ended
	Mar. 31, 2019
Geographic Areas Long Lived Assets [Abstract]
Schedule of Long-Lived Assets by Location	The following table presents long-lived assets by location: March 31, December 31, 2019 2018 Unaudited Audited United States $ 7,973 $ 8,289 Switzerland 2,939 2,513 Israel 2,428 2,236 Germany 958 1,054 Others 1,389 1,274 Total $ 15,687 $ 15,366
Schedule of Revenues by Geographic Region	The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended March 31, Year ended December 31, 2019 2018 2018 Unaudited Audited United States $ 46,604 $ 37,802 $ 168,414 EMEA (*) 22,520 13,874 72,485 Japan 3,370 449 6,351 Greater China (1) 815 - 819 Total $ 73,309 $ 52,125 $ 248,069 (*) including Germany $ 21,287 $ 13,358 $ 67,849 (1) Reflects revenue recognized in accordance with a License and Collaboration Agreement between us and Zai Lab (Shanghai) Co., Ltd. (“Zai”), dated September 10, 2018, pursuant to which Zai is commercializing Optune in China, Hong Kong, Macau and Taiwan (“Greater China”). For additional information, see Note 12 to the Consolidated Financial Statements in our 2018 10-K.

Cash, Cash Equivalents and Sh_3

Cash, Cash Equivalents and Short-Term Investments - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Cash And Cash Equivalents [Abstract]
Cash	$ 9,104	$ 9,197
Money market funds	142,963	131,425
Total cash and cash equivalents	$ 152,067	$ 140,622

Cash, Cash Equivalents and Sh_4

Cash, Cash Equivalents and Short-Term Investments - Summary of Amortized Cost And Recorded Basis of T-bills in Short Term Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Short-term investments	$ 104,535	$ 105,256

Cash, Cash Equivalents and Sh_5

Cash, Cash Equivalents and Short-Term Investments - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Estimated fair value of short-term investments	$ 104,547	$ 105,266

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 1,526	$ 870
Work in progress	8,176	8,667
Finished products	14,436	13,018
Total	$ 24,138	$ 22,555

Commitments, Rights of Use and

Commitments, Rights of Use and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Operating lease expiration description	The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2029.
Operating lease, extistence of option to extend	true
Increase in right-of-use assets obtained in exchange for lease obligations	$ 15,733
Lease and rental payments	1,740
Deferred rent	863
Pledged bank deposits	1,134	$ 1,143
Operating lease and other contractual commitments	$ 1,294	$ 1,299
Motor Vehicles
Loss Contingencies [Line Items]
Operating lease expiration description	The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2022.
Maximum
Loss Contingencies [Line Items]
Operating lease agreements, expiration year	2029
Maximum | Motor Vehicles
Loss Contingencies [Line Items]
Operating lease agreements, expiration year	2022

Commitments, Rights of Use an_2

Commitments, Rights of Use and Contingent Liabilities - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Lease (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Future minimum lease payments:
2019 (excluding the three months ended March 31, 2019)	$ 3,216
2020	3,766
2021	3,475
2022	2,503
2023	1,655
Thereafter	3,258
Total future minimum lease payments	17,873
Less imputed interest	(3,090)
Net present value of future minimum lease payments	14,783
Short-term lease liabilities	3,768
Long-term lease liabilities	11,015	$ 0
Net present value of future minimum lease payments	$ 14,783
Weighted average of remaining operating lease term	6 years 4 months 17 days
Weighted average of operating lease discount rate	7.46%

Share Capital - Additional Info

Share Capital - Additional Information (Details)	3 Months Ended
	Mar. 31, 2019shares
Share Capital [Line Items]
Options exercised	2,047,421
Ordinary shares issued upon option exercise	2,047,421
ESPP
Share Capital [Line Items]
Ordinary shares available for grants	3,122,410
Shares issued under plan	347,193
2015 Plan
Share Capital [Line Items]
Ordinary shares available for grants	12,649,222
2015 Plan | Option
Share Capital [Line Items]
Stock awards granted, vesting period	4 years
Stock awards granted, expiration period	10 years
2015 Plan | RSUs
Share Capital [Line Items]
Stock awards granted, vesting period	3 years

Share Capital - Schedule of Sto

Share Capital - Schedule of Stock Option Plan (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Number of options
Number of options, Outstanding at beginning of year | shares	14,438,215
Number of options, Granted | shares	751,471
Number of options, Exercised | shares	(2,047,421)
Number of options, Forfeited and cancelled | shares	(40,258)
Number of options, Outstanding at ending of year | shares	13,102,007
Number of options, Exercisable options | shares	5,852,344
Weighted average exercise price
Weighted average exercise price, Outstanding at beginning of year | $ / shares	$ 13.56
Weighted average exercise price, Granted | $ / shares	47.04
Weighted average exercise price, Exercised | $ / shares	8.38
Weighted average exercise price, Forfeited and cancelled | $ / shares	14.47
Weighted average exercise price, Outstanding at end of year | $ / shares	16.29
Weighted average exercise price, Exercisable options | $ / shares	$ 12.79

Share Capital - Schedule of RSU

Share Capital - Schedule of RSU's (Details) - RSUs	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Number of RSUs
Number of RSUs, unvested at beginning of year | shares	1,613,197
Number of RSUs, granted | shares	486,506
Number of RSUs, vested | shares	(391,191)
Number of RSUs, forfeited and cancelled | shares	(3,837)
Number of RSUs, unvested at ending of year | shares	1,704,675
Weighted average grant date fair value price
Weighted average grant date fair value price, unvested at beginning of year | $ / shares	$ 14.04
Weighted average grant date fair value price, granted | $ / shares	47.04
Weighted average grant date fair value price, vested | $ / shares	12.09
Weighted average grant date fair value price, forfeited and cancelled | $ / shares	21.15
Weighted average grant date fair value price, unvested at ending of year | $ / shares	$ 23.89

Share Capital - Schedule of Fai

Share Capital - Schedule of Fair Value Assumptions Used Only for Equity Based Awards Estimated Using Black-Scholes Option Pricing Model (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Stock Option Plans
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 years 2 months 23 days	6 years 3 months
Expected volatility	55.00%	55.00%
Expected volatility, minimum			52.00%
Expected volatility, maximum			55.00%
Risk-free interest rate	2.40%	2.77%
Risk-free interest rate, minimum			2.70%
Risk-free interest rate, maximum			2.99%
Dividend yield	0.00%	0.00%	0.00%
Stock Option Plans | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)			5 years 6 months
Stock Option Plans | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)			6 years 3 months
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 months	6 months	6 months
Expected volatility	62.00%	53.00%
Expected volatility, minimum			45.00%
Expected volatility, maximum			53.00%
Risk-free interest rate	2.51%	1.61%
Risk-free interest rate, minimum			1.61%
Risk-free interest rate, maximum			2.14%
Dividend yield	0.00%	0.00%	0.00%

Share Capital - Schedule of Non

Share Capital - Schedule of Non-cash Share-Based Compensation Expenses Related to Company's Equity-Based Awards (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 9,649	$ 8,520	$ 39,846
Cost of Revenues
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	426	164	1,261
Research, Development and Clinical Trials
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	1,188	906	4,709
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	1,962	1,436	7,393
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 6,073	$ 6,014	$ 26,483

Supplemental Information - Sche

Supplemental Information - Schedule of Long-Lived Assets by Location (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 15,687	$ 15,366
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	7,973	8,289
Switzerland
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	2,939	2,513
Israel
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	2,428	2,236
Germany
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	958	1,054
Others
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 1,389	$ 1,274

Supplemental Information - Sc_2

Supplemental Information - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 73,309	$ 52,125	$ 248,069
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	46,604	37,802	168,414
EMEA
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	22,520	13,874	72,485
Japan
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	3,370	$ 449	6,351
Greater China
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 815		$ 819

Supplemental Information - Sc_3

Supplemental Information - Schedule of Revenues by Geographic Region (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 73,309	$ 52,125	$ 248,069
Germany
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 21,287	$ 13,358	$ 67,849