NovoCure Limited (NASDAQ:NVCR) Q3 2023 Earnings Call Transcript

Emily Bodnar: Thanks. And on the METIS readout?

Bill Doyle: So, on the METIS market, so again, I think we do have an advantage in that we will be using the same commercial infrastructure. So, the same oncologists who treat glioblastoma, even though it’s a different disease, it’s non-small cell lung cancer that has metastasized to the brain. These are the same clinicians. And so we would expect to leverage the same commercial infrastructure that’s already in place, and that will clearly be a benefit for us when we launch that indication.

Emily Bodnar: Okay. Thank you.

Operator: Thank you. [Operator Instructions] And our next question comes from Jason Bednar of Piper Sandler. Please proceed. Jason if your line is muted, please un-mute. [Operator Instructions] And our next question comes from Vijay Kumar of Evercore ISI. Please proceed.

Unidentified Analyst: Hi. This is Kevin for Vijay. Noticed that you called out $14.5 million of denied payments, just curious on what this means going forward? Is this a change? Are payers becoming more stringent? Any color there would be helpful. And were there any denied payment trends historically? Thank you.

Ashley Cordova: Kevin, yes, this is Ashley. I appreciate the question because it is really important that everybody understands this one. So, this is not a change. This is not a reflection of any more stringent coverage criteria. And in fact, this is consistent with our messaging here over the prior three quarters, in that we had a significant amount of claims from – I mean of revenue from aged claims in our 2022 baseline number to the tune of over $40 million year-to-date in the first nine months, and as you noted, about $15 million in this quarter. So, that is revenue that was at our year-over-year comparison in the baseline and is not in the actual for 2023. We would not expect it to be moving forward, because we are now in a position where revenue reflects the base drivers of our business, which is our current Optune patient volumes and the net revenue that we are able to collect on those patients.

So, to be very clear, this is not more stringent coverage criteria and in fact, is a factor more of an elevated baseline than it is in the 2023 trend.

Unidentified Analyst: Thank you. And if I can follow-up, how should we think about the METIS trial as it relates to your GBM business especially given its focus on the same region. Do you see any potential impact or change in physician perspectives on Optune positive or negative from those trial results on your GBM business? Thanks.

Bill Doyle: Kevin, another important question. Thank you. Simple answer is no. These are two distinct diseases, even though they may be treated by the same clinicians. Our GBM business is now well established and stable, and we have resounding clinical evidence and commercial experience. In the script, in fact, we called out recent reports of real-world evidence and in particular, Ballo’s analysis of nine separate real-world papers, and these are all coming in at exactly the same place supporting the results of our original clinical trial. And we have reached a point in the world where clinicians also have their office experience. They have substantial – the prescribers have substantial numbers of patients. They see the benefits. They see the extension and survivals in their own practices. So, plus or minus, I don’t think there is going to be an effect either way.

Operator: Thank you. At this time, I would like to turn the conference back to Bill Doyle for closing remarks.