NovoCure Warns Of Potential $11 Million Tariff Hit If US Trade Pause Expires In 2025

Financial Performance - NovoCure Ltd NVCR reported a first-quarter 2025 loss of 31 cents, an improvement from the 36-cent loss reported a year ago, and it beat the consensus loss estimate of 46 cents [1] - Sales increased by 12% year over year to $155 million, surpassing the consensus estimate of$146.6 million [1] Tariff Impact - The global tariff environment is changing, with the U.S. temporarily delaying the implementation of new tariffs by 90 days, resulting in a 10% tariff for most countries [2] - If the current pause is extended through year-end, NovoCure could face an increase in import duties of up to $8 million in 2025 [2] - Should tariffs return to pre-April 9 rates, the potential increase in import duties could rise to$11 million in 2025 [3] Product Performance - As of March 31, 2025, there were 4,268 total active patients on TTFields therapy globally [3] - In the quarter, 1,608 prescriptions for Optune Gio for glioblastoma were received, reflecting a decrease of 1% from a year ago [3] - Optune Lua received a CE Mark for adult patients with metastatic non-small cell lung cancer (NSCLC) who have progressed on or after a platinum-based regimen [3] Revenue Contributions - Revenue contributions from key markets included the U.S. at $93.2 million, Germany at$18.7 million, France at $17.9 million, and Japan at$8.7 million, with other active markets contributing $11.9 million [6] - Revenue in Greater China from Novocure's partnership with Zai Lab totaled$4.6 million [6] - Recognized revenue from Optune Lua in the quarter was $1.5 million, with$0.8 million from malignant pleural mesothelioma and $0.7 million from metastatic NSCLC [6] Prescription Data - The U.S., Germany, France, and Japan contributed 908, 198, 207, and 118 prescriptions for Optune Gio, respectively, with 4,162 active Optune Gio patients on therapy, marking a 9% increase [7] - The U.S., Germany, France, and Japan contributed 2,157, 573, 463, and 445 active Optune Gio patients, respectively, with 524 active patients from other markets [7]