NovoCure Limited (NASDAQ:NVCR) Q4 2023 Earnings Call Transcript

Frank Leonard: Thank you for the question, Jonathan. This is Frank Leonard [indiscernible] United States. Our focus has been on education and really direct engagement with potential prescribers through the advisory board process. And one of the main areas of focus is simply to work with the physicians to understand and acknowledge that there is a gap in the second-line treatment of non-small cell lung cancer. And we’ve seen this, or we’ve heard this very clearly now from physicians, that they are not satisfied with their options for treatment after platinum failure. And we think that working with physicians to align on this core mutual understanding is the first step. And from there, we begin to educate and introduce them to Tumor Treating Fields, which we acknowledge in the medical oncology community is a new modality and we do have to go through this education process to help them understand.

We’re really pleased with where we are today in terms of engaging the key KOLs and preparing the plan in the U.S. to pull through. I’d also note in Germany, we are also in the pre-launch phase where we are waiting for the CE Mark. And we’ve been able to engage in Germany with our key physicians through both pre-launch activities in non-small cell lung cancer, but also through the launch of Optune Lua for mesothelioma — engaged in the community in Germany to help through that education curve and ultimately to prepare the market for the launch.

Ashley Cordova: I mean, the one other thing, Jonathan, that I would just flag is that this is a medtech launch curve. And as we look to the models, as everybody is building this in, I would look to our GBM launch curve and not the stereotypical biotech curve in particular when it comes to the reimbursement dynamics.

Asaf Danziger: Yes, I think the other question you asked was with respect to our cash position for preparation for these launches, and we are prepared, and it’s part of our strategic plan to fully finance the non-small cell lung cancer launch that’s in the budget. And as we anticipate the METIS readout, again, there is overlap between our key prescriber groups there, too. So if you’ll recall, METIS is treating patients after stereotactic radio surgery. So the radiation oncologists that we engage in our GBM business is the radiation oncologist, principally, who is treating these patients, along with the primary medical oncologist who’s treating their non-small cell lung cancer. So we believe from a cash perspective, we’re well covered for the non-small cell lung cancer launch and a potential launch pending the outcome of medicine.

Jonathan Chang: Understood. Thanks for taking the questions.

Operator: Thank you. One moment for our next question. And our next question comes from Larry Biegelsen of Wells Fargo.

Unidentified Analyst: Hi, good morning. It’s Lynn [ph] calling in for Larry. Can you hear me okay?

Ingrid Goldberg: We can Lynn.

Unidentified Analyst: Thanks for taking that. Thanks for taking the question. The first one is, actually, you guys don’t provide guidance, but you did give some color on how to think about 2024, using 2023 as a base. Can you give some more detail as far as how to think about the pace of active patient growth through 2024? Should we think about relatively balanced growth? Is there some sort of acceleration we should think about? And related to that, should we expect prescription growth as well in GBM in 2024 and any contribution from the lung that we should look for in 2024? And I have a follow-up.

Ashley Cordova: Yes. Thanks, Lynn. I mean, I will reiterate, what you said, and I said earlier, is that we do think 2023 is a clean baseline upon which we will grow in 2024. And that those levers of growth fundamentally will be active patient growth, which can come from prescription growth, can come from better conversion from scripts to starts, and can come from increasing duration and we are focused on all of those levers. Transparently, we’re not going to be able to give additional detail on what to expect there, other than to say that we do expect to see growth there. We are incentivizing our teams to grow there, and we are doing everything we can to grow there in all geographies. I do think as we look to France, there is room to continue to grow off of the strong Q4. I don’t think we’re done seeing kind of what a mature France markets looks like, but I would just say, yes, clean 2023 baseline, and yes, we are looking ahead to 2024 growth.

Unidentified Analyst: Got it. And anything on lung as far as contribution in 2024?

Ashley Cordova: Yes. I know, so this is one where we would guide you to be very conservative in your 2024 model. We would expect material revenue contribution in 2025 because of the reimbursement dynamics. So we will begin on an aimed patient basis, but there it does take a couple of quarters to get through those first appeal cycles. So your leading indicator of adoption there will be first prescriptions and then active patients, but really, revenue will begin to materially creep in 2025.