NovoCure Ltd. ((NVCR)) has held its Q3 earnings call. Read on for the main highlights of the call.
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NovoCure Ltd. recently held its third-quarter earnings call, which painted a mixed picture of the company’s current standing and future prospects. The sentiment was generally positive, highlighting strong growth in the glioblastoma multiforme (GBM) segment and international markets, as well as regulatory advancements for new indications. However, these positives were counterbalanced by challenges in launching treatments for non-small cell lung cancer, stagnant growth in the U.S. market, and financial hurdles such as reduced gross margins and net losses.
GBM Patient Growth
The GBM segment remains a cornerstone of NovoCure’s business, showing resilience and consistent growth. Over the past nine quarters, the number of active GBM patients has increased by 5% to 12% year-over-year. As of the end of Q3 2025, the company reported 4,277 GBM patients on therapy, marking a significant milestone.
International Expansion
NovoCure has made notable strides in expanding its international footprint, with substantial growth in key markets such as France, Japan, and Germany. These countries reported growth rates of 27%, 8%, and 7% respectively. Furthermore, a positive national coverage decision from the Spanish Ministry of Health is anticipated to further bolster international growth.
Regulatory Progress in Japan
A significant regulatory achievement was the approval from Japanese authorities for the use of Optune Lua in conjunction with checkpoint inhibitors for advanced or recurrent non-small cell lung cancer. This approval is expected to lead to strong adoption by physicians, enhancing NovoCure’s market presence in Japan.
PANOVA-3 Progress
NovoCure has made substantial progress with its PANOVA-3 trial, having submitted data to the FDA for the treatment of pancreatic cancer. The company anticipates receiving approval by mid-next year, which could open new avenues for growth.
Financial Performance
The company reported net revenues of $167 million for the quarter, an 8% increase compared to the same period last year. This growth was primarily driven by the strong performance of GBM franchises in France, Germany, and Japan.
Challenges in Non-Small Cell Lung Cancer Launch
The launch of treatments for non-small cell lung cancer has not met expectations, with only 100 patients on therapy in Q3. Challenges include the poor overall health status of patients and stiff competition from new targeted drug therapies.
Flat Growth in the U.S. Market
In the U.S., the GBM active patient count remained flat compared to Q3 2024. This stagnation is attributed to academic centers prioritizing pharmaceutical trials over device-based therapies, presenting a hurdle for NovoCure.
Gross Margin Reduction
The gross margin for the third quarter was reported at 73%, a decline attributed to the global rollout of HFE arrays, ongoing expenses from the lung cancer launch, and increased tariffs.
Net Loss
NovoCure reported a net loss of $37 million for the quarter, with a loss per share of $0.33. The adjusted EBITDA was negative $3 million, reflecting the financial challenges the company faces.
Forward-Looking Guidance
Looking ahead, NovoCure aims to expand its treatment offerings to include four cancer indications by the end of 2026. The company is also focused on reaching profitability and making strategic investments to enhance its product portfolio. Key metrics include a target revenue range of $700 million to $750 million and achieving a sustainable adjusted EBITDA breakeven by 2027.
In summary, NovoCure’s earnings call highlighted a blend of growth and challenges. While the company is making significant strides in international markets and regulatory approvals, it faces hurdles in the U.S. market and financial performance. The forward-looking guidance suggests a strategic focus on expanding treatment indications and achieving financial sustainability, offering a cautiously optimistic outlook for stakeholders.