Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to the NovoCure's Q1 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today, Ingrid Goldberg. Please go ahead.

Ingrid Goldberg

everyone. morning, Good joining Performance. for review First NovoCure's Thank us XXXX Quarter you to I'm our Ashley morning Doyle; this on phone the with Asaf and our Danziger; Executive our CFO, Cordova. CEO, Bill Chairman, executive leadership for available Other members of team also call Q&A. on are and the our

slides earnings your website, be our release found Reports. reference, For on under the Quarterly can on www.novocure.com, Investor accompanying the Relations page

actual would of forward-looking discussions time include are involve beyond I to statements, start, statements. like by could and during law. except risks forward-looking conference to we We you these our our to from from our of Before that a in intend described filings. materially as SEC required will are this call statements and uncertainties, time in those results differ do remind number projected some statements any control publicly which not and update These

to EBITDA, removes interest, capital items; reflects Where amortization EBITDA rate financial of refer tax business, We believe it important measures non-GAAP is before to attributable earnings non-cash earnings impact our structure, and of adjusted the an adjusted our and appropriate, metric to financial taxes, generated share-based value by material measure compensation. as evaluate specifically the best and we our business. depreciation, a

are the from website. non-GAAP the accessed SEC with page filed in Reconciliations materials slides GAAP our also our Relations measures be of X-K Form and of included today. financial to press in release, earnings Investor can our These

line prepared Following for open we your remarks our questions. the today, will

to turn Chairman, now Doyle. Executive will call over our I the Bill

William Doyle

patients to forms mission cancer. extend morning. good and diagnosed At you, Thank our NovoCure, of is the aggressive of with lives Ingrid,

and to markets, multiple decades, international sustainable two XX,XXX business trials, most XX treated and strong manuscripts, over we've commercial published global last include clinical importantly built our successful a patients. XXX the model, Over completed expanded over footprint

are business people we proud helped. and we the built have We of have

cancer. we Chicago, Meeting in our results of will American LUNAR of Clinical the lung in at Oncology Phase Society month X cell present Next trial Annual pivotal the non-small

presentation with beginning tens the ASCO deadly with additional mark the the patients NovoCure's diagnosed to help of will chapter, next Our cancers in of years. coming thousands of intention

I grateful physicians. well for employees, all cannot and that wait courage as and dedication the of work patients as hard NovoCure's our for I XXXX. in lies am the prescribing for ahead

catalysts, On today's a clinical review call, we in discussion our our followed core of begin a of will with GBM. business by

the clinical our before will lung standard We for TTFields of in questions. non-small first call the the line X therapies pivotal cancer. Phase top LUNAR results announced Stage X of opening a close today's financial care Earlier together cell line with discussion results we of with year, quarter evaluating this trial

the advanced demonstrated X more met alone. therapy overall profound when in checkpoint LUNAR a first checkpoint primary TTFields cancer secondary valuating versus LUNAR benefit survival its years. endpoint, treated refractory endpoint, lung patients than immunotherapy TTFields a Stage inhibitor in and inhibitor combined cell was with with of non-small providing powered X a meeting

alone. LUNAR survival in docetaxel with docetaxel treated and overall demonstrated patients also TTFields trend versus positive for the

share findings annual session. Emory of to cancer Ticiana the the will next at non-small Chicago. will month the meeting University LUNAR be that ASCO present Dr. Leal the lung June pleased are Tuesday, data LUNAR We investigator lead On cell metastatic trial X, in presented during

non-small Dr. by since question-and-answer platinum cell following survival follow on will with improvements remind demonstrated at cancer session leadership. treatment LUNAR host Leal; Langer and [indiscernible] Tuesday, the overall lung University will Later in and you Corey in period with the LUNAR of XXXX. clinical failure investigator a Dr. NovoCure fellow no I the Pennsylvania improvement a presentation of

this a population year, multiple read we over each INNOVATE-X need. Later out to X the announce X in Phase results focused set high of ovarian pivotal platinum X.X first year, resistant to Phase trial from the cancer. expect trials top on line is unmet LUNAR the pivotal with

Phase of top early patient cancer. metastases clinical the of non-small the These completion last line cancer readout treatment of enrolled, follow-up NovoCure's we In stage for expect XXXX, top And pivotal foundation of METIS the from we evaluating TTFields lung trial, growth. from line will in of pancreatic in anticipate next pivotal the following cell the results the brain X XXXX. provide the locally PANOVA-X the trial of for the the XX-month pivotal X advanced use Phase trials

to trials indication alone, diagnoses and In the The XXx of annual tens patients which benefit to TTFields is commercial of diagnoses glioblastoma, every diagnosed the the from with sustainable enable forms these U.S have continues us could of the of lives promise That number pivotal these to cancer, day. of of therapy. aggressive we strong patients business. an drive thousands outcomes treated in of extend nearly in cancers trials the of a

to patients closer you step our I soon, in we forward believe you more month updating next seeing thousands, of many to are treat and this exciting to time. look potential we the achieving many to Chicago throughout mission. With one

over With to I business. to that, will our commercial turn Asaf, discuss the call

Asaf Danziger

Thank you, Bill.

NovoCure. X to I excitement studies set out, what years. read it With amazing time in is GBM, share like an coming turning commitment at the be would Before my also to multiple to and to to is next pivotal

to We our ahead of of to bring rewarding patients. have us a work many lot therapy new

key to NovoCure's strength growth to One commercial to return of the to this future. active for financial the provide invest is in areas our year GBM. focus patient continues business of

on of multiple Our commercial launches the the been has never foundation with more important horizon. possibility commercial

resilient the could of that TTFields from proud there patients are benefit GBM know more therapy. business are we many but built, we have We

penetration new education our to markets, markets, patients and on patients current therapy increase in We help remain are and in reach determined innovation. through product longer

to our providers organization and better in more commercial business. essential and market XX% leverage of In the we approximately health resources, restructured current our is to care have markets, Increasing footprint growth patients. market our share where months, engage we improved captured to penetration our GBM recent digital

X,XXX we US, the the single received most In we in ever QX, have received in a quarter. prescriptions

does systemic occur are results. that change we by health While we recognize U.S not appreciate the and care, overnight, in encouraged

So reimbursement though, new and approvals. Germany, in steady recovery seeing in both we patient are starts,

While greater are in we indicators, show that to future. believe the they penetration contribute progress early will these

to markets. dedicated markets, entering to will in a also to the execution largest the more our in we are enabling entering in received opportunity key and France. for country many Earlier We France year, present EU, milestone in new reach new therapy. second this GBM our patients France effort is patients reimbursement access

in X approval months begun less second in of Canada opening than following in first have in market We prescriptions treating Optune is our our the have France and received patients. new November. France

markets, access with goal care with patients are teams market of additional it. of health Our in number more a GBM in the engaged authorities reaching potential

Finally, that research arrays. generation to to on important we small many new a the better to our to Optune possible. we end, continue enable on day to launch of want focus as as shows one TTFields of leads therapy outcomes. To serve this patients. is patients initiatives improving hours technology per time Clinical better And most of for wear our

lighter new current and flexible use. are Our in thinner, arrays than those more

we are sleep. experience, The to both with improved and more proving very seeing are rates. successful a last reported are now results arrays during daily rolling pleased Sweden, be a and date. high the during activity Austria and in treatment patient to new have Following we pilot year, out we are in much Patients launch materially usage comfortable

Our U.S. approval next steps are to the PMA submit to Germany FDA the a market and in for launch in supplement to

experience in for supplement to PMA committed a submit of enhancements year. the the to further years and expect patients ahead. the expect remain We We the second improving loan TTFields product half in to

know the over year. colleagues first is as months the the Before thank patients to continue work of This hand as like driving call to help ready exciting hard I to an I part to of you're we as possible. would the all And to Ashley, NovoCure. are many time X be our I for

discuss I now the call Ashley financial will results. to our hand to

Ashley Cordova

began to you, in for investing expand progress a spur with launches the and product We year to across growth and time on GBM of multiple potential execution clinical future resources a to Thank and programs quarter our solid strategically a focus indications. development Asaf. and solid and foundation

$XXX the revenue, X,XXX million quarter therapy. in active we generated net with and patients first ended the on quarter, In

impact headwind in collections million a expected, from quarter. As the of claims U.S slowing previously $X the caused denied and age

focused While active franchise. green CNS patients seeing promising to on are QX, business. In high remain down watermark year-over-year, were a restructured our prescriptions, we return growth our GBM a we shoots and U.S established in quarterly we in from

$X In following year-over-year a as decrease payer expected, million saw net negotiations. revenues Germany, XXXX in we

XX%. and towards and Margin approved of increase launches, in recovery Germany, array. to in of ongoing potential active preparation mix first the quarter impacted future the launch support continue was margin signs capacity a patients patient by Gross for for as patient coverage. shifts new planned We our see was grow as well as

SG&A quarter $XX expenses for million. the were

We Tumor activities in geographies. increase we sales Fields have awareness and intended Treating marketing to increased enter new as

growth. chain technology increased information spend expanded and We also enable our to on supply have enhancements future

expenses first and completed million. trials. $XX our Research X the the METIS In and pivotal for PANOVA-X Phase we both of development totaled enrollment past quarter months, X

expect of these As trials near Phase pipeline solid X other to cancer. with and our tumor replenish completion, we variety across our trials a clinical new

initiatives and ease designed optimize therapy. will we patient product addition, In our use, fund development continue to to of enhance

of as XX, XXXX. Cash and $XXX investments million March short-term totaled

Our million. a for was $XX per adjusted the net negative share, was loss first $XX $X.XX and or quarter EBITDA million

our patient treating our approval. growth tumor We and strategically are initiatives in investing capabilities, larger in anticipation to commercial populations, awareness treat to of enhance future to of increase fields capacity expand

All are our GBM. commercial foundation in stable supported provided strong of by by these business investments the

go throughout NovoCure about Mike's explore old determined He highlighting treatment like on is extend and needed an to a wife XX literature happens they year researcher I'd Wellington, the the Mike be of GBM in today Treating manager updating by his a medical The our Vanessa, Florida. essential CNS device his one therapy Optune we our progress future industry. Mike could diagnosed years Mike forward bright of is users. for a be options. clinical you year. treatment. to with sales life to the look Hugo to Fields Tumor close ago. Together, was his that into to part of and and and

legendary asking Facebook Bridget the McGraw in player a on song After Mike's record his weddings XXXX. father, of have died and impacted song goal been the country to summer, Last a of future to started singer turned out GBM. His using daughters, McGraw Tug was GBM baseball Brooke. with of It by at Mike also two he played duet McGraw, had them. posted Girl My Tim Little he diagnosis, Mike's video the Optune.

Grand the Ole arranged Tim fly cameras There to icon. duet message, for daughters Mike's to sang his with family When Nashville the Opry. with heard at danced Hugo and country entire meet and Mike the he the rolling, a with him

of and are to of be thousands Mike's We honored those journey, patients him. like a part of

to will of continue families. of our meaningful to therapy patients making the tirelessly We drive forward impact work innovative many and their goal more in the lives a with

will the it I questions. back that, turn to With for operator

Ingrid Goldberg

Hi everyone.

I please? a think having Operator, technological you there problem. we're

Operator

And of Yes. [Operator Truist is Securities. Instructions] Fraser our Greg from question first

Greg Fraser

folks. morning, taking for Good Thanks the questions.

you prescription for the And near-term? double-digit On about quarter growth U.S. growth? growth the Can while active in growing? talk strong more Is GBM, that should the the to in first prescribers had drive prescription in base the the you prescriptions, [indiscernible] in decline. of patients Optune expect a U.S. bit growth investors market

Frank Leonard

is her very Greg, encouraged hit They pull the thank Ashley that of component where the growth. we revenue the speaking. -- on Frank in prescription are question. we QX to noted in as in that -- This are results seeing we a high have this overall indicator. to remarks, ultimately will the Leonard drive U.S. prescriptions you leading by we're record order say metrics I through for are first, the Yes,

at encouraged in But just do we prescriptions we results. first think activities QX. demand quarter QX looking by reflects, see in and We part, are the and indicators, -- it

place with right people incentives the commercial to customers where that the focused and the on to made front right putting right upgrades investments tools our prescription. of in to in the the we U.S. the and we've pull First, through organization,

come has we've dynamic events. in to seen Second, where overall in-person oncology the the macro environment back

AACR, with presence. is at we incredible an with neuro-oncologists. strong where incredibly then and conference main which had our had the in with point first main the engagement Same again team quarter, at So presence fourth in oncologist Astra, our radiation scientific quarter snow an

the wouldn't point encouraged reflect -- got dynamics overall, that that wouldn't to to first can I we think results, that mixes we've we sending progress. right the than We think or So the I go of say now we that message are is we by team continue we're changes. the specific actual think noting quarter they make any to other

Greg Fraser

helpful. very the presentation. then just That's on Great. LUNAR a question And

early questions there there following the have the you was for clearly, are stats, won't patients, whether expect for large of a Some data been on you the questions whether PD-LX the be an address the that the unknown results that percentage presentation do will IO about imbalance, such groups or stats ambiguity PD-LX these ASCO? of

William Doyle

Yes. Yes, so morning. This Bill. good is

we very during an announce at pleased session ASCO. So the have to cancer were presentation metastatic we will lung that oral

foremost, So everybody seeing looking are and we in to first forward June.

at with to status an time. will personnel. will have as And that investor meeting that address would the respect KOLs, to issues Following NovoCure we we expect and the balance presentation, well also PD-LX as include investigators all

Greg Fraser

Great.

back Just important with time one determinant on expect is a average presentation? The data the investors time ASCO and to jump TTFields. more the at of to on Thanks queue. on I'll very therapy quick much. therapy very see Should one,

Ashley Cordova

I'll Yes, everybody LUNAR? is to ask this that in that will anchor get the until the expect therapy. time X Phase data, And I remind PFS you For to would trial. include we actually the data set average on you that

Greg Fraser

Great. you. Thank

Operator

you. Thank Bodnar from of comes for next first question. question And our our moment Wainwright. Emily H.C. -- next One

open. Your is line

Emily Bodnar

in trials And of are with first follow-up quarter from there. on make late of cancer there the lung we Hi, maybe as should expand year? taking for besides kind the questions. Thanks or a combining Do where they'll of clinical GBM? can other now can on a whether you of early on stage? immunotherapy this any first base? expect in kind initiate to you here Maybe bit rest year, increases Thanks. you sales the the what think U.S. to And for the kind you sales view and indications stage plan And sense question. be

Ashley Cordova

Emily, of per say map when with this need is the to need revenue. revenue, the the I at deliver because look to core that active we anchor price leading the able is GBM was business, Frank Ashley. months times on the time, indicators. color give period you're everybody would I'll we to we the to consistent number month patients up prescriptions in expectations, of net and start what When on which modeling ultimately

year. X months or So XX months that the would the be quarter for for

at And performance seen no QX we the we've reflects age would claims, our that not longer years had expectation so from that as in that XXXX. pace tailwind continue and it prior in is the those

think to to that would core core and map. an map like That's important we I reflects anchor So do that you QX base.

I Germany prescriptions takes we against green that and We've U.S. about this. Now have for note talked shoots puts the expected. recovery in the in progressing as the will do also is

that. to that's But anchor to to see on we do time core global a and in over continue your to price is what expect likely it map would benefit model. in so that we And to at the level net some important

William Doyle

and I question will I this is Bill part with -- will second of again. -- take to So trials. the clinical the your respect take

other here. all aspects are we platform We therapy their we're here cancer And targets exciting the our modality to than a all so because use just that new therapies. are electrical cells with pioneering many there rather the properties therapy chemical So properties. of can

So we chemotherapies. radiation, see either synergy or with additivity

we a we've TOP with And cold and the We we've in, a with great tumor", present combined course, seeing we improvement. cell and results. alluded in in and non-small of GBM, of combined are routinely where And ASCO at to advancements been Treating Tumor Fields IOs. most for now Tumor see has that instance, when when IOs what one a we cancer, we've we'll IOs "cold two pembrolizumab trial where with Tumor what we combine Treating Fields the see the cancer used profound of lung see Treating in exciting what are Fields

And are deliver regions to those Treating We can the know torso these cancers targets. head, in our neck, -- Fields difficult we all and the Tumor of abdomen.

is answer the so And yes.

working. You expect which additional the trials to in should indications already we're in see

and So for as cell additional areas like see very say to cancer, expect I begun, trials hepatocellular and we've trials in would Phase you'll lung disclosed non-small well there promising instance, we've carcinoma, as just gastric X data. where

Emily Bodnar

Great. Thank you.

Operator

moment Thank you. One for our question. next

Our next question Jessica JPMorgan. from Fye comes of

Your line open. is

Na Sun

me. Good on A morning, Sun Jessica Fye. guys. couple This from is Na for

look. it still INNOVATE-X, anything, of mention an data announcement line in was this And back was anticipate in other you the interesting the what, in was? this Thank outcome we nearly active PANOVA-X XXXX? top in a was -- year? that are And then in And the half to later completed interim say quarter when markets the full to the incremental $X that So if Germany And on lastly, France EMEA the of a the overall out terms if then did presentation million enrollment, quarter? interim there from there breaking happened the then say data you. a NovoCure that Is mid has of million. for was revenue Can track revenue was yet? $XX markets quarter? And contributing and any

Asaf Danziger

It's PANOVA. start will -- with So I hi. Asaf.

think on [ph] the We do planning are as soon. still to the of track. Ashley rest question is, we And So interim the I [indiscernible].

Ashley Cordova

also been no structure. just half item end under period, line mean I year, change patient talk I'll would international we INNOVATE our simply its always line expectations to in No own we EMEA, on out. standalone. out When in that with market an back its was this internal broken about data now expect Germany revenue, change. very in and expected. the track as has come that year, in And enrollment. that progressing in So to it's follow-up to This should mid broken are out franchise are this item the own reiterate I be also we're of Things adjustment has clear. that those

There currently in so that you in are EMEA outside only no can others U.S., our market, Qs. is Japan to non-EMEA of active in the prior other. EMEA tie markets other

So have not that France. will revenue that do in note I yet I question. we appreciate

We are treating patients.

this and active couple we cycle. market, us will administrative conclusion have the see a in take collection material successful ramp that through we go up a patients you come as but revenue see of before through quarters it of So look to just

Operator

Instructions] question from comes of our next [Operator you. Kumar And Vijay Thank Evercore ISI.

open. is line Your

Unidentified Analyst

Thanks. This is [indiscernible] for Vijay.

the on remind ASCO, you get to OpEx say, back be on GBM? status expression How like hires increase Just of in this new And the indications second, can specifically topic much new SG&A. There seems and new of markets large markets learn focused existing we of current quarter, to again, a us on will patients on PD-X then? Thanks. versus increase. were,

William Doyle

provide I'm everybody be of And during all question. underlying in with Q&A will PD-LX parameters will the your lung for cancer. that and respect we cell the that to X, presentation repeat, that to non-small going the afternoon. session Tuesday, take And thanks metastatic yes, Ashley? from And just I'll the presentation data the and morning June held to LUNAR Good be data trial in our XX:XX for later at

Ashley Cordova

in hopefully pancreatic for would business our for at geographic lung, expansion I to related we ovarian future. SG&A, growth the commercial in almost in or exclusively the growth existing launches our its preparation GBM on whether SG&A, And that's markets, there's say and Yes. look as in

they resourced. would say feel GBM markets like today, existing active we but do our business we I resource of appropriately in adequately are So our

commercial opening and in up focused and are early And opening so there increments up on lung opportunities beyond. fronts

Unidentified Analyst

Thanks.

Operator

for like to to Thank Doyle remarks. now turn you. conference back closing would the I Bill

William Doyle

morning It's be at the your everyone So I exciting this phone us joining NovoCure. over is of convey to and thank hard it continued to what an time want support for NovoCure. to

very are next-generation of are we scripts. our are thrilled fruit, in we're beginning about way really important. seeing of We talk our this in market terms with is this didn't it increases arrays. both launch bear We think but the We what our geographic call, in much thrilled on the efforts expansion, with to with

And Sweden is and we here out the we're in U.S. roll the new and early getting that PMA following Austria out this on supplement read great is the And regulatory this rolling across the product so then, of indications. focused from approval. and a now course, Europe can

We are modality. pioneering this new

broad we're and now application it the based years threshold We on have on been talking to bringing of XX patients. R&D our about really of the

So thank you all.

Operator

now you. concludes This for Thank call. you may today's Thank disconnect. conference participating, you and

NovoCure Limited (NVCR) 4 May 232023 Q1 Earnings call transcript