Novocure Stock Dips As Q1 Earnings Miss Estimates, Higher Costs Hurt Bottom Line

• Novocure Ltd NVCR first quarter of FY23 net revenues slumped 11.2% year over year to $122.18 million, missing the estimate of $127.28 million.
• The oncology company registered an adjusted loss of $(0.50), missing the consensus of $(0.32).
• Higher operating expenses(+38.1% Y/Y) weighed on the quarter under review. Costs rose on increased investments associated with geographic expansion, supply chain expansion, and information technology enhancements.
• Gross profit in Q1 plunged 15.7% to $92.57 million, while margins slid 408 basis points to nearly 76%.
• As of March 31, 2023, there were 3,467 active patients in therapy. 
• In Q1, 1,496 prescriptions were received, +8% Y/Y. The Company said it received "the most prescriptions in its history in the U.S." 
• "We look forward to a promising 2023 and the opportunity to reach many more patients who can benefit from the use of Tumor Treating Fields therapy", said Novocure CEO Asaf Danziger.
• Price Action: NVCR shares are trading lower by 2.7% at $64.14 premarket on the last check Thursday.

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