- Net Revenue Growth $159 million, up 6% year-over-year, driven by 7% active patient growth in GBM franchise.
- Optune Lua Performance Generated $2.4 million in net revenues, with $1.1 million from non-small cell lung cancer.
- Gross Margin Decline 74% gross margin, down from 77% in Q2 2024, due to HFE array rollout and NSCLC launch.
- Commercial Expansion 121 NSCLC prescriptions (106 in U.S., 15 in Germany) and 137 Optune Lua patients globally.
- Clinical Trial Success PANOVA-3 trial showed 16.2 months median overall survival, a 2-month improvement over control arm.
Financial Performance
The company's commercial business grew, with 121 prescriptions for non-small cell lung cancer, 106 in the U.S. and 15 in Germany. There were 137 Optune Lua patients globally, 94 from non-small cell lung cancer and 43 from MPM. The company received positive feedback from physicians on Optune Lua, with 75 unique prescribers, 41 new to Tumor Treating Fields therapy. Novocure's R&D expenses were $63 million, a 2% increase from Q2 of 2024. Sales and marketing expenses were $57 million, a 1% increase from Q2 of last year. G&A expenses were $44 million, a 17% increase from Q2 of 2024, driven by higher share-based compensation expenses and personnel costs.
Clinical Developments
Recent clinical developments include the PANOVA-3 trial, which demonstrated a median overall survival of 16.2 months, 2 months greater than the control arm, in unresectable locally advanced pancreatic cancer patients treated with TTFields therapy, gemcitabine, and nab-paclitaxel. The company expects to file the PMA with the FDA in the third quarter for pancreatic cancer and has submitted the first two PMA modules for brain metastases from non-small cell lung cancer. The METIS trial met its primary endpoint, demonstrating a statistically significant improvement in time to intracranial progression for patients treated with TTFields therapy.
Valuation and Outlook
Novocure's valuation metrics suggest that the stock is trading at a discount. The P/S ratio is 2.07, and the EV/EBITDA is -16.72. According to analysts, the stock has a potential upside, with estimated revenue growth at 7.2% for next year. The company is positioning Optune Lua as a treatment option for patients with non-small cell lung cancer who have progressed beyond platinum-based therapy. With a cash and investment balance of $912 million and $560 million in convertible notes due later this year, Novocure has a solid financial position to execute on its growth strategy.