NovoCure (NVCR) Q4 2024 Earnings Call Transcript | The Motley Fool

Image source: The Motley Fool. DATE Thursday, Feb. 27, 2025, at 8 a.m. ET CALL PARTICIPANTS Executive Chairman - Bill Doyle Chief Executive Officer - Ashley Cordova Chief Financial Officer - Christoph Brackmann Chief Medical Officer - Nicolas Leupin President, U.S. Oncology - Frank Leonard TAKEAWAYS Revenue -- $161 million in Q4, up 21%; $605 million for the year, up 19%. Active Patient Growth -- Global active count grew 10%, surpassing 4,000 for the first time. Lung Cancer Launch -- 52 prescriptions received and 20 active patients on therapy from FDA approval to year-end; payer coverage milestones anticipated in 2025, with significant revenue from this indication expected in 2026. Clinical Pipeline Milestones -- METIS trial met primary endpoint with 21.9 months median intracranial progression (vs. 11.3 months control); PANOVA-3 met endpoint with 16.2 months median overall survival (vs. 14.2 months control). Gross Margin -- 79% in Q4; 77% for the year, both higher than 75% in 2023, driven by improved U.S. approval rates. Adjusted EBITDA -- $3 million in Q4, up $34 million from the preceding year’s Q4; $1 million for the year, up $107 million versus 2023. Net Loss -- $66 million in Q4 ($0.61 per share); $169 million for the year ($1.56 per share). Sales and Marketing Expenses -- $67 million in Q4 (up 14%); $239 million for the year (up 5%). G&A Expenses -- $72 million in Q4 (up 84%); $190 million for the year (up 16%), with full-year expenses excluding stock-based compensation decreasing $10 million due to prior restructuring. Research & Development -- $51 million in Q4 and $210 million annually, both down 6%. Cash Position -- $960 million at year-end; $561 million convertible note due in Q4 2025, with company stating current capital is adequate to pay in full and fund operations. Future Revenue Guidance -- 2025 growth expected to track with Optune Gio active patient rates; GBM business to grow at a low mid single-digit rate. Gross Margin Outlook -- Expected to decline to lower 70s in 2025 due to HFE array rollout and initial lung launch dynamics, with anticipated reversion after these headwinds abate. Addressable Market Expansion -- New indications could increase eligible patient population to 7x the size of the legacy GBM opportunity. Need a quote from a Motley Fool analyst? Email [email protected] RISKS Christoph Brackmann stated, "The gross margin in the quarter but also for the year was -- the quarter was 79%, year was 77%, benefited from the increased approval rates and specifically also from the benefit that we had from prior period claims. So for the full year, that was $22 million. If you adjust that on gross margin, you would be looking at gross margins in the mid-70s, and I think that's a good anchor. Now what we also said in 2025, we expect headwinds on gross margin from two sides. One is the rollout of new head array, which is lighter and thinner and more flexible. So a significant benefit to our patients, but it comes...

Preview: ~500 words