Novocure (NASDAQ: NVCR), a Switzerland-based developer of Tumor Treating Fields (TTFields) cancer therapeutic technology that uses electric fields to target and eliminate cancer cells, is undergoing a strategic restructuring and portfolio prioritization. The company plans to release 200 staff members, representing approximately a 13% reduction in its workforce, with the expectation of achieving USD 60 million in operating cost savings. Novocure is also streamlining its pipeline to concentrate resources on its global commercial infrastructure and prepare for the upcoming launch of its treatment for metastatic non-small cell lung cancer (NSCLC), which is anticipated to receive regulatory approval soon.
These changes are aimed at “prioritizing growth and maintaining financial health” and “positioning for future profitability,” according to Novocure’s Chief Financial Officer, Ashley Cordova. The company faced a setback in August when TTFields did not significantly improve overall survival (OS) in combination with chemotherapy in a Phase III trial for platinum-resistant ovarian cancer. However, Novocure is on track to add NSCLC as a new indication after TTFields demonstrated a median OS of 13.2 months compared to 9.9 months for the standard of care alone in the Phase III LUNAR study. The final stages of the NDA filing in the US for NSCLC are expected to be completed later this year.
Novocure currently markets Optune and Optune Lua for the treatment of glioblastoma (GBM) and malignant pleural mesothelioma (MPM), respectively, in global markets. The company has partnered with China’s Zai Lab Ltd since 2018, with Zai securing approval for the TTFields product in GBM in 2020.
In Q3 of this year, Novocure reported a 3% decrease in total net revenues to USD 127.3 million, with Zai generating USD 6.8 million in China sales for the therapy. Net losses for the quarter were USD 49.5 million, while the company held USD 921 million in cash or equivalent holdings.- Flcube.com
