NovoCure (NVCR) Morgan Stanley 24th Annual Global Healthcare Conference summary

Strategic initiatives and business evolution

• Shifted focus to disciplined investment, prioritizing growth in glioblastoma (GBM) and launches in pancreatic and non-small cell lung cancer, especially in Japan.

• Implemented cost controls, particularly in R&D, and began issuing financial guidance for the first time.

• Achieved 8% year-over-year volume growth in GBM through improved patient identification and expanded sales coverage.

• Diversified revenue streams and expanded global footprint, with significant progress in Europe and Japan.

• Emphasized the need for nimble clinical trial strategies to adapt to rapidly evolving oncology landscapes.

Product development and clinical pipeline

• Ongoing phase III KEYNOTE D58 trial in GBM aims to combine Tumor Treating Fields with pembrolizumab, with enrollment completion expected by year-end and readout in about two years.

• Optune Pax program targets locally advanced, non-resectable pancreatic cancer, showing enhanced local control and pain-free survival.

• Preclinical data supports combining Tumor Treating Fields with KRAS inhibitors; a clinical trial with daraxonrasib is planned.

• Exploring additional pancreatic cancer trials and combination strategies with both approved and investigational agents.

• Optune Lua for non-small cell lung cancer faces challenges in the U.S. but shows promise in Japan due to more flexible treatment guidelines.

Financial performance and outlook

• Three-step profitability plan: adjusted EBITDA breakeven by year-end, followed by cash flow and net income breakeven.

• Guidance indicates at least breakeven adjusted EBITDA by year-end, with $50 million potential upside.

• Disciplined OpEx management, with minimal growth expected in R&D and G&A, and moderate increases in sales and marketing.

• $440 million in cash (including $200 million debt) on the balance sheet; no near-term need to access capital markets.