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Dec 31, 2021

Novocure Q4 2021 Earnings Report

Novocure's financial performance declined in Q4 2021 due to lower revenues and increased operating expenses.

Key Takeaways

Novocure reported a decrease in total net revenues for the quarter, with $133.2 million compared to $143.953 million in the same quarter of the previous year. The company experienced a net loss of $26.5 million, or $0.25 per share, compared to a net income of $4.917 million, or $0.05 per share, in Q4 2020. Despite the decrease in revenues, the company invested significantly in research and development, with expenses totaling $56.9 million for the quarter.

Total net revenues for the quarter were $133.2 million, a decrease compared to the previous year.

Net loss for the quarter was $26.5 million, with a loss per share of $0.25.

Adjusted EBITDA for the quarter was $1.7 million.

As of December 31, 2021, there were 3,587 active patients on therapy, an increase of 5% year-over-year.

Total Revenue
$133M
Previous year: $144M
-7.5%
EPS
-$0.25
Previous year: $0.04
-725.0%
Active Patients
3.59K
Previous year: 3.41K
+5.2%
Prescriptions Received
1.43K
Previous year: 1.41K
+1.3%
Gross Profit
$104M
Previous year: $116M
-10.6%
Cash and Equivalents
$209M
Previous year: $235M
-11.0%
Free Cash Flow
$130K
Previous year: $47.7M
-99.7%
Total Assets
$1.14B
Previous year: $1.05B
+8.3%

Novocure

Novocure

Forward Guidance

The company expects to achieve active patient growth between 2% to 5% in 2022, in-line with the growth rate experienced in the fourth quarter of 2021. Longer term, the company continues to expect further adoption in its core GBM business.

Positive Outlook

  • Data from phase 2 pilot EF-31 study in gastric cancer (2022)
  • Data from phase 2 pilot EF-33 study with high-intensity arrays in recurrent GBM (2022)
  • Last patient enrollment in phase 3 pivotal METIS study in brain metastases (2022)
  • Data from phase 3 pivotal LUNAR study in NSCLC (2022)
  • Last patient enrollment in phase 3 pivotal PANOVA-3 study in locally advanced pancreatic cancer (2023)

Challenges Ahead

  • Data from phase 3 pivotal INNOVATE-3 study in recurrent ovarian cancer (2023)
  • Data from phase 3 pivotal METIS study in brain metastases (2023)
  • Data from phase 3 pivotal PANOVA-3 study in locally advanced pancreatic cancer (2024)