NovoCure Limited Annual Report 2017

← All annual reports

FY2017 Annual Report · NovoCure Limited

Loading PDF…

building a global
oncology platform

NOVOCURE 2017 ANNUAL REP ORT

NOVOCURE 2017 ANNUAL REPORT

explore our world

letter to our shareholders

company highlights
CONSOLIDATED STATEMENT OF OPERATIONS

driving commercial adoption
EXPANDING REIMBURSEMENT

NIKKI WOOLFOLK, OPTUNE USER

MATT LOZANO, SENIOR DEVICE SUPPORT SPECIALIST

advancing our clinical pipeline
WE CAN LEVERAGE PHYSICS TO FIGHT CANCER

PROFESSOR IGNACE VERGOTE, CLINICAL TRIAL INVESTIGATOR

ORI FARBER, SENIOR MEDICAL MANAGER

building long-term shareholder value
POSITIONED FOR FUTURE GROWTH

SIGNIFICANT UNMET MEDICAL NEED

TOMOE KAMATA, SPECIAL PROJECT MANAGER

PRITESH SHAH, SENIOR VICE PRESIDENT OF THE AMERICAS

Novocure leadership

Sophie Blösch
Optune user

3explore
our world

Novocure Jersey

Novocure Switzerland

Novocure Germany

ST. HELIER, JERSEY

LUCERNE, SWITZERLAND

MUNICH, GERMANY

CORPORATE HEADQUARTERS

GLOBAL SUPPLY CHAIN AND EMEA

GERMAN COMMERCIAL OPERATIONS

COMMERCIAL OPERATIONS

Novocure Canada

VANCOUVER,
BRITISH COLUMBIA

CANADIAN CLINICAL TRIAL

MANAGEMENT

Novocure New York

NEW YORK CITY

U.S. COMMERCIAL OPERATIONS

Novocure New Hampshire

PORTSMOUTH, NEW HAMPSHIRE

U.S. OPERATIONS

Novocure Pennsylvania

MALVERN, PENNSYLVANIA

GLOBAL FINANCE, LEGAL AND

INFORMATION TECHNOLOGY

OPERATIONS

Novocure Japan

TOKYO, JAPAN

JAPANESE OPERATIONS

Novocure Israel

HAIFA, ISRAEL

GLOBAL RESEARCH AND

DEVELOPMENT OPERATIONS

45to our
shareholders

In 2017, Novocure’s efforts were focused on three objectives. First, bring Optune® to
adult patients with glioblastoma (GBM) in our active markets. Second, advance our
clinical pipeline for a range of solid tumor cancers in which we believe Tumor Treating
Fields can help patients. Finally, operate in a way that is fiscally responsible and
begin to realize leverage within our organization. We are happy to report to you, our
shareholders, that we made measurable progress toward these objectives in 2017.

Last year marked a year of solid performance in our
commercial business. We expanded the number of active
patients on treatment by 68 percent and grew the number
of prescriptions written for Optune by 47 percent
compared to 2016. We improved patient access to our
therapy by continuing to sign contracts with private payers
in the United States and by gaining national reimbursement
approvals in Austria and Japan. We started the formal
process toward national reimbursement in Germany.

In December 2017, we published the final analysis of our
EF-14 phase 3 pivotal trial in newly diagnosed GBM in the
Journal of the American Medical Association (JAMA).
These results demonstrated that more than one in eight
patients with newly diagnosed GBM who were treated with
a combination of Optune and temozolomide survived for
five years versus one in twenty patients who were treated
with temozolomide alone.

In November 2017, we presented data from a post-hoc
subgroup analysis of our EF-14 trial that demonstrated a
statistically significant extension of survival starting at 12
hours a day of Optune use. In EF-14, 43 patients who wore
Optune 90 percent or more of the time had an estimated
30 percent chance to survive five years.

We also made progress in our research and development
efforts in 2017. At year-end, we had three phase 3 pivotal
trials open to study Tumor Treating Fields in combination
with standard of care treatments versus standard of care
treatments alone in brain metastases from non-small cell
lung cancer, non-small cell lung cancer and pancreatic
cancer. We successfully scaled our clinical teams in 2017
to run multiple clinical trials, and we are poised to continue
progressing our clinical pipeline.

Asaf Danziger, CEO (left)

William Doyle, Executive Chairman

Novocure’s next data readout will be in mesothelioma, the
lung cancer associated with asbestos exposure. We
enrolled the last patient in our STELLAR phase 2 pilot trial
in March of 2017 and received a Humanitarian Use Device
designation for Tumor Treating Fields for the treatment of
patients with pleural mesothelioma in May 2017. This
opens up the possibility to apply for a Humanitarian Device
Exemption (HDE) based on strong phase 2 pilot data.

We finished 2017 in a strong cash
position with $183.3 million in cash on
our balance sheet as of December 31,
2017, providing us with the financial
stability and flexibility to continue to
execute on our core objectives.

In February 2018, we further strengthened our cash
position when we entered into a new $150 million term
loan agreement to replace our existing $100 million term
loan debt. Moving forward, we remain focused on the
disciplined management of gross margin and SG&A
expenses in order to build a profitable business.

NOVOCURE 2017 ANNUAL REPORT
NOVOCURE 2017 ANNUAL REPORT
NOVOCURE 2016 ANNUAL REPORT

GROWING COMMERCIAL
BUSINESS WITH MORE THAN

7,000

PATIENTS TREATED AS OF
DECEMBER 31, 2017

PROPRIETARY PLATFORM TECHNOLOGY
WITH PRECLINICAL DATA IN

INDICATIONS

Novocure is a global oncology company with a proprietary
platform technology, a growing commercial business and
significant upside potential. Looking ahead, we are focused
on two clear priorities. First, drive commercial adoption of
Optune. Second, advance our clinical pipeline. We enter
2018 well positioned to execute on both fronts.

We are committed to building long-term shareholder value
and investing responsibly for our future growth. Thank you
for your continued support of Novocure.

Asaf Danziger,
CEO

William Doyle,
Executive Chairman

67company
highlights

Optune, our first Tumor Treating
Fields delivery system, is approved for
the treatment of adults with GBM and
has demonstrated unprecedented
five-year survival results when used
in combination with temozolomide in
a large, randomized, phase 3 pivotal
trial for patients with newly
diagnosed GBM.

We believe that GBM represents just
the beginning of our journey. In our
preclinical work and clinical work to
date, Tumor Treating Fields has
shown a consistent anti-mitotic
effect. Our clinical pipeline includes a
range of solid tumor cancers with
significant unmet medical need.

NOVOCURE 2017 ANNUAL REPORT

“We delivered record revenue
of $177.0 million in 2017,
representing 114 percent
growth year-over-year.
Importantly, our GBM business
has begun to fund the pipeline.”

—Wilco Groenhuysen

Chief Financial Officer

active patients
at period end

1,834

1,683

1,460

1,266

1,091

985

891

797

605

469

425

372

FY 2015

FY 2016

FY 2017

U.S. active patients

EMEA and Japan active patients

$38.1

MILLION

INVESTED IN RESEARCH &
DEVELOPMENT DURING 2017

$183.3

MILLION

IN CASH, CASH EQUIVALENTS,
AND SHORT-TERM INVESTMENTS
AS OF DECEMBER 31, 2017

global net revenues
(USD thousands)

$53,661

$50,109

consolidated statement
of operations

$38,376

$34,880

$30,242

$21,674

$17,919

$12,383 $13,053

$8,953

$6,543

$5,208

$33,087

FY 2015

$82,888

FY 2016

$177,026

FY 2017

U.S. net revenues

EMEA and Japan net revenues

USD thousands

Net revenues

Cost of revenues

Impairment of field equipment

Gross profit

Operating costs and expenses:

Research, development and clinical trials

Sales and marketing

General and administrative

Total operating costs and expenses

Operating loss

Financial expenses, net

Loss before income taxes

Income taxes

Net loss

Year ended December 31,

2017

2016

2015

177,026

82,888

33,087

55,609

—

121,417

38,103

63,528

59,114

160,745

(39,328)

(9,169)

(48,497)

13,165

39,870

6,412

36,606

41,467

59,449

51,007

151,923

(115,317)

(6,147)

(121,464)

10,381

20,610

—

12,477

43,748

38,861

33,864

116,473

(103,996)

(3,151)

(107,147)

4,434

(61,662)

(131,845)

(111,581)

89driving
commercial
adoption

Optune plus temozolomide offers the best chance
for long-term survival in newly diagnosed GBM

FIVE-YEAR SURVIVAL
INTENT-TO-TREAT ANALYSIS

p=0.029

73%

65%

Optune® + TMZ (n=466)

TMZ alone (n=229)

)

(
e
t
a
r

l
a
v
i
v
r
u
S

p=0.001

43%

31%

p=0.004

26%

16%

p=0.0002

20%

3
Year from randomization

Stupp R, Taillibert S, Kanner A, et al. Effect of Tumor-Treating Fields Plus
Maintenance Temozolomide vs Maintenance Temozolomide Alone on
Survival in Patients With Glioblastoma: A Randomized Clinical Trial.
JAMA. 2017;318(23):2306–2316.

p=0.004

13%

NOVOCURE 2017 ANNUAL REPORT

global active markets

12,500 GBM
CASES DIAGNOSED ANNUALLY
IN THE UNITED STATES

1,500 GBM
CASES DIAGNOSED
ANNUALLY IN JAPAN

330 GBM
CASES DIAGNOSED ANNUALLY
IN SWITZERLAND

3,600 GBM
CASES DIAGNOSED
ANNUALLY IN GERMANY

340 GBM
CASES DIAGNOSED
ANNUALLY IN AUSTRIA

325 GBM
CASES DIAGNOSED
ANNUALLY IN ISRAEL

Our first core strategic priority is to drive commercial
adoption of Optune for the treatment of GBM. We ended
2017 with 12 consecutive quarters of active patient and
revenue growth and more than 1,800 patients on therapy.
Active patient growth is our principal revenue driver, and
we delivered $177 million in net revenues in 2017.

therapy, and we bear the financial risk of securing payment
from patients and third-party payers in all markets except
for Japan. In Japan, we distribute our product through
hospitals. We made significant strides in 2017 to secure
formal coverage and consistent reimbursement from
payers in all three regions in which we operate.

We have established commercial operations in six markets
across three regions – the United States, Germany, Austria,
Switzerland, Israel and Japan – and have certified
prescribers at more than 1,100 centers globally to treat
patients with Optune. Within each of our active markets,
we focus first on generating awareness of Optune and our
unprecedented five-year survival data in newly diagnosed
GBM. Once awareness is established, our focus shifts to
increasing the percentage of physicians who routinely
discuss Optune with their patients and who confidently
position Optune plus temozolomide as the treatment for
newly diagnosed GBM that offers the best chance to live
longer compared to temozolomide alone.

We believe approximately 14,000 people are eligible for
treatment with Optune in our currently active markets
and we estimate our penetration rate was 20 percent in
2017. Optune is the first treatment in more than 10 years
to increase median overall survival in newly diagnosed
GBM, and we believe there are many more patients who
could benefit from treatment with Optune than are
currently on therapy.

expanding
reimbursement

We provide Optune directly to patients following receipt of
a prescription order and a signed patient service
agreement. We bill payers a single fee each month for

As of December 31, 2017, more than 210 million Americans
had coverage of Optune for newly diagnosed and/or
recurrent GBM, representing more than 96 percent of
privately insured lives in the United States. In August 2017,
we secured reimbursement for Optune in Austria for
patients with newly diagnosed GBM. In December 2017,
the Japanese Ministry of Health, Labour and Welfare
approved national reimbursement for Optune for the
treatment of newly diagnosed GBM in Japan.

We continue to work on expanding access to Optune in
our active markets and to define pathways to
reimbursement in additional markets. In the United States,
we remain engaged in active discussions with the Centers
for Medicare & Medicaid Services administration regarding
Medicare fee-for-service reimbursement for Optune. In
Germany, we are able to bill healthcare payers for
individual cases and have started the formal process to
secure national reimbursement through a clinical trial. We
are pursuing reimbursement for Optune in Switzerland
and Israel.

We believe there is an opportunity to increase the average
reimbursement per patient in our currently active markets
and expect future reimbursement decisions to drive
revenue growth.

1011

Nikki Woolfolk
Optune user

Kansas, United States

Nikki Woolfolk, of
Lawrence, Kansas, used
Optune from March 2017
to January 2018.

After her second son was born, Nikki Woolfolk began
experiencing panic-like anxiety. Despite medical care and
therapy, her symptoms persisted. Her primary care
physician referred her to a neurologist, who ordered an
MRI. The results showed a tumor in her brain.

After having surgery to remove the tumor, Nikki learned
she had GBM. Despite the severity of her diagnosis, she felt
relieved to know the cause of her anxiety, which turned
out to be minor seizures.

Nikki, 32, of Lawrence, Kansas, felt helpless when she
didn’t know what was causing her anxiety — having a
diagnosis gave her a sense of control.

“Now we can take action,” she said, recalling the moment
she received the diagnosis. “I was in go mode. Keep going,
take action and do what my doctors tell us to do.”

Nikki works part time at a local hospital as a physician
recruiter. She decided to work part time before her
diagnosis to spend more time with her children, Eli, 5, and
Beau, 2. On her days off, Nikki sometimes takes her boys to
gymnastics classes. The Woolfolks also enjoy bicycling and
boating. Her husband, Chess, runs his own business and
has some flexibility, which helps him prioritize time with his
family as well.

“The scariest part of my
whole experience thus far
was when I didn’t know
what was going on.”

“The scariest part of my whole experience thus far was
when I didn’t know what was going on,” she said.

Nikki is grateful that her part-time work schedule affords
her more time with her children.

Nikki doesn’t view herself as a patient. After she was
diagnosed, she started dressing up more to improve
her confidence.

“I want my kids to remember this time, no matter what
happens long term,” she said. “We have a really close family,
and we’re going to take care of each other no matter what.”

“I need to face this anyway,” she said. “I can try to make it a
little bit better.”

NOVOCURE 2017 ANNUAL REPORT

Matt Lozano
senior device support specialist
Texas, United States

Prior to joining Novocure in 2012, Matt Lozano worked as
a project manager in clinical trials and cancer research. In
that role, he often observed the life-altering side effects
cancer patients endured when receiving chemotherapy
and radiation therapy.

“When I learned about the mechanism of action,
technology and mild side effect profile of Tumor Treating
Fields, I knew right away that I wanted to be a part of
Novocure,” he said.

In his role as a device support specialist at Novocure, Matt
works with cancer patients and their caregivers every day.
Novocure’s device support specialists (DSSs) provide
technical training on Optune to GBM patients and their
caregivers. They start new patients on therapy and follow
up with them often in the first month of treatment as
patients learn to incorporate the treatment into their lives.
DSSs then connect with patients monthly to create a
treatment compliance report for the patient and their
health care provider, and to provide technical tips or
address any concerns.

Working with patients is one of Matt’s favorite parts
of his job.

“You have to be patient and understanding of where
they’re coming from,” Matt said. “I always walk in with a
big smile on my face. When you create a welcoming
environment for the patients, they often better
understand the device and become more accepting of
the treatment.”

When interacting with patients, he enjoys being
supportive and seeing GBM patients who are able to
continue with their daily activities while on Optune. He
recalled working with a patient who drove the entire
Route 66 and another who continued his hobby of
hunting. Seeing patients accomplish their goals gives
Matt a sense of meaning from his job.

“I feel like my face is glowing,” he said. “I feel so
incredible that our company is able to provide this
treatment to them.”

1213advancing
our clinical
pipeline

enrollment in our STELLAR trial, a phase 2 pilot trial in
mesothelioma, and secured a Humanitarian Use Device
designation for Tumor Treating Fields in mesothelioma.

We saw a growing interest in Tumor Treating Fields among
researchers and clinicians throughout the world with 19
investigator-sponsored trials open and recruiting at year-
end and more than 100 posters or presentations with
external lead authors at major medical conferences
throughout the year. We also expanded our preclinical
knowledge of the multi-pronged mechanism behind
Tumor Treating Fields. We published preclinical research
demonstrating that Tumor Treating Fields delays DNA
damage repair following radiation, induces autophagy in
certain cell lines and reduces cell migration and invasion.

With an ongoing commitment to research and
development investments, we believe there is a range of
solid tumor cancers where Tumor Treating Fields may be
able to help patients.

Our second core strategic priority is to advance our
clinical pipeline to study Tumor Treating Fields in multiple
solid tumor indications beyond GBM. Throughout more
than a decade of preclinical research in 18 different cancer
cell lines, Tumor Treating Fields has demonstrated a
consistent anti-mitotic effect.

Although currently only approved for the treatment of
GBM, we believe Tumor Treating Fields may be broadly
applicable to solid tumors and may not be limited to a
specific tumor type or genetic marker. Tumor Treating
Fields is intended principally for use in combination with
other standard of care cancer treatments. In addition to
unprecedented survival results in newly diagnosed GBM,
we have what we believe to be promising phase 2 pilot
data in non-small cell lung cancer, pancreatic cancer and
ovarian cancer. In our clinical research and commercial
experience to date, Tumor Treating Fields has exhibited no
known systemic toxicity, with mild to moderate skin
irritation being the most common side effect.

We made significant progress in 2017 to advance our
clinical pipeline. At year-end, we were recruiting for three
randomized phase 3 pivotal trials – our METIS trial in brain
metastases from non-small cell lung cancer, our LUNAR
trial for non-small cell lung cancer and our PANOVA 3 trial
for locally advanced pancreatic cancer. We completed

NOVOCURE 2017 ANNUAL REPORT

By using physics to influence biology, Novocure
discovered another way to treat cancer. Tumor
Treating Fields utilizes the natural electrical
properties of dividing cancer cells.

Tumor Treating Fields is a cancer therapy that uses
electric fields tuned to specific frequencies to
disrupt cell division, inhibiting tumor growth and
causing affected cancer cells to die. An electric
field is a field of force. Electric fields surround all
charged objects. An electric field exerts forces on
other charged objects within it. Tumor Treating
Fields uses alternating electric fields specifically
tuned to target cancer cells. Once the electric
fields enter the cancer cell, they attract and repel
charged proteins during cancer cell division.

we can leverage physics to fight cancer

AN ELECTRIC FIELD EXERTS
FORCES ON CHARGED OBJECTS

TUMOR TREATING
FIELDS DESCRIBES
ELECTRIC FIELDS THAT
ALTERNATE 100,000
TO 300,000 TIMES PER
SECOND TO TARGET
CANCER CELLS

TUMOR TREATING FIELDS USES ELECTRIC FIELDS
TO DISRUPT CELL DIVISION

MISALIGNED
TUBULINS
INTERFERE
WITH
FORMATION
OF MITOTIC
SPINDLE

ALTERNATING
ELECTRIC FIELDS
DISRUPT CANCER
CELL DIVISION

MISALIGNED
SEPTINS
INTERFERE
WITH
FORMATION
OF
CONTRACTILE
RING

CANCER CELL DEATH

Tumor Treating Fields utilizes the natural
electrical properties of dividing cancer cells.

Cellular proteins such as tubulin and septin are
strongly affected by Tumor Treating Fields because
they are highly polar, containing both positive and
negative charges. During cell division, tubulin and
septin must position themselves in a particular
way in order for the cell to divide. Tumor Treating
Fields exerts forces on tubulin and septin,
preventing them from moving to their correct
locations and disrupting cancer cell division.
Tumor Treating Fields does not stimulate or heat
tissue and targets dividing cancer cells of a
specific size. We believe Tumor Treating Fields
causes minimal damage to healthy cells. Mild to
moderate skin irritation is the most common side
effect reported.

1514NOVOCURE 2017 ANNUAL REPORT

ongoing
clinical trials

BRAIN METASTASES

NON-SMALL CELL
LUNG CANCER

PANCREATIC CANCER

PRE-
CLINICAL

PHASE II
PILOT

PHASE III
PIVOTAL

EXPECTED NEXT MILESTONE

METIS TRIAL LAST PATIENT IN 2019 WITH FINAL DATA
COLLECTION IN 2020

LUNAR TRIAL LAST PATIENT IN 2019 WITH FINAL DATA
COLLECTION IN 2021

PANOVA 3 TRIAL LAST PATIENT IN 2020 WITH FINAL DATA
COLLECTION IN 2022

OVARIAN CANCER

PHASE THREE PIVOTAL TRIAL OPEN IN 2H 2018

MESOTHELIOMA

STELLAR TRIAL FINAL DATA COLLECTION IN MID-2018

Trial ongoing

Trial complete

we also have pre-clinical
data for Tumor Treating
Fields in these areas:

PRE-CLINICAL

BREAST CANCER

CERVICAL CANCER

COLORECTAL CARCINOMA

EPENDYMOMA

GASTRIC ADENOCARCINOMA

GLIOSARCOMA

HEPATOCELLULAR CARCINOMA

MALIGNANT MELANOMA

MEDULLOBLASTOMA

MENINGIOMA

RENAL ADENOCARCINOMA

SMALL CELL LUNG CANCER

URINARY TRANSITIONAL CELL CARCINOMA

Ori Farber
senior medical manager

Haifa, Israel

Before joining Novocure in 2012, Ori Farber had recently
completed his medical studies and was working in the
emergency department of a hospital considering the next
steps of his career. He wanted to do something
completely different with his training. Instead of selecting
a residency, he chose to work at Novocure.

“I was looking for something that would still be connected
to medicine and patient care,” Ori said. “I wanted to make
an impact on patients’ lives. And then I found Novocure.”

The company’s cancer treatment also combined two of
his interests: medicine and bioengineering.

Ori, a Senior Medical Manager on Novocure’s Clinical
Operations Team, works on all Novocure-sponsored
clinical trials. He takes part in the development,
preparation and execution of clinical trials. He provides
medical input to his Novocure colleagues, contract
research organizations and investigators throughout the
clinical trials.

Ori said there is lot of work done behind the scenes in
order to conduct clinical trials.

“There are many parts, details and people involved,” he
said. “It’s like an orchestra. It’s a huge effort in the
planning, creation and execution of the study.”

Ori said the Clinical Operations Team contributed to some
of Novocure’s major accomplishments in 2017. Those
accomplishments include the publication of the final EF-14
phase 3 pivotal trial data in GBM in JAMA, enrolling the first
patient in the phase 3 pivotal trial in non-small cell lung
cancer, and completing the preparations for opening the
phase 3 pivotal trial in unresectable locally advanced
pancreatic cancer.

When looking toward the future, he is most excited about
Novocure’s evolving pipeline and the potential to help
more cancer patients.

“Lung cancer is a good example,” Ori said. “There are so
many people affected by this disease and there is so much
room for improvement in the outcome and prognosis of
these patients. There is a great potential to have an effect
on a large patient population.”

Although Ori and the Clinical Operations Team do not treat
patients, patients are always at the forefront of the work
they do. Reflecting on his decision to join Novocure versus
begin a residency in medicine, Ori feels he made the right
choice and that he may have the opportunity to impact a
larger number of patients in his role at Novocure than he
would as a clinician.

“This company exists for patients,” he said. “They are
always on our mind.”

1617NOVOCURE 2017 ANNUAL REPORT
NOVOCURE 2017 ANNUAL REPORT

Novocure’s INNOVATE trial examined Tumor Treating
Fields in combination with standard of care chemotherapy
in patients with recurrent platinum-resistant ovarian
cancer. The data suggested that Tumor Treating Fields in
combination with weekly paclitaxel is tolerable and safe.
The data also suggested more than doubling of the
progression free survival and an improvement in overall
survival among patients who received Tumor Treating
Fields with paclitaxel compared with historical controls.

Based on these results, Novocure plans to start a phase 3
trial in recurrent ovarian cancer in 2018. Professor Vergote
said he plans to participate.

“I’ve always been very interested in innovation and trying to
find new treatment modalities to help our patients,” he
said. “I’ve always done that from the start of my career.”

Professor Ignace Vergote
Novocure clinical trial investigator

Leuven, Belgium

Professor Ignace Vergote, Chairman
of the Department of Obstetrics and
Gynaecology and Gynaecologic
Oncology at the Catholic University
of Leuven, European Union

Professor Ignace Vergote has dedicated his 32-year
career to investigating treatment options and striving to
improve survival in gynecologic cancers. Among
gynecologic cancers, ovarian cancer is the deadliest,
representing the fifth most common cause of cancer
death among women in the United States. Five-year
survival in ovarian cancer has slowly increased from 34
percent in 1975 to 47 percent today.

“We are making progress little by little, step by step,” said
Professor Vergote, Chairman of the Department of
Obstetrics and Gynaecology and Gynaecologic Oncology
at the Catholic University of Leuven, European Union.

Although more women are living longer with ovarian
cancer today than several decades ago, 70 percent of
patients will have a recurrence and most will eventually
die from the disease.

“As an oncologist, you mean a lot to patients,” he said.
“Many times, you can’t cure them, but you can give them
a longer life with acceptable quality of life.”

To date, Professor Vergote has authored more than 800
papers in gynecologic cancer research and his work was
cited more than 40,000 times. He conducts 20 clinical
trials in ovarian cancer per year and was an investigator in
Novocure’s phase 2 pilot study in recurrent ovarian
cancer, INNOVATE.

“There are few possibilities to treat these patients,” he
said. “We must continue to investigate treatment options
that may potentially improve survival in this difficult to
treat disease.”

Professor Vergote became interested in Tumor Treating
Fields as a potential treatment for ovarian cancer after
seeing the data of Novocure’s EF-14 phase 3 pivotal trial
in newly diagnosed glioblastoma and learning about the
treatment’s side effect profile. In Novocure’s clinical
research and commercial experience to date, Tumor
Treating Fields has exhibited no known systemic toxicity,
with mild to moderate skin irritation being the most
common side effect.

“I’ve always been very
interested in innovation
and trying to find new
treatment modalities to
help our patients.”

1819building long-term
shareholder value

Our proprietary platform technology — Tumor Treating
Fields — is based upon a unique mechanism of action that
utilizes electric fields tuned to specific frequencies to
disrupt cancer cell division. In our preclinical and clinical
research to date, Tumor Treating Fields has shown a
consistent anti-mitotic effect. We have unprecedented
five-year survival results in newly diagnosed GBM,
promising phase 2 pilot data in non-small cell lung
cancer, pancreatic cancer and ovarian cancer, and pre-
clinical evidence in 18 different cancer cell lines.

We own all commercialization rights to Tumor Treating
Fields in oncology. Our robust global patent and
intellectual property portfolio consists of over 140 issued
patents, with a number of additional patent applications
pending worldwide. We believe we will maintain
exclusive rights to market Tumor Treating Fields for all
solid tumor indications in our key markets through the
life of our patents.

positioned for
future growth

We have near-term opportunities to increase penetration
and average reimbursement per patient within our six
currently active markets for the treatment of GBM.
Medium-term, our goal is to strategically expand into
additional markets for GBM. Our 2017 national

reimbursement decisions in Japan and Austria
demonstrate our commitment to expand access to
Optune globally. For each new market we enter, we first
evaluate a potential pathway to reimbursement and then,
once defined, work to increase adoption. Also in the
medium-term, we will work to progress mesothelioma
toward commercialization.

Long-term, we believe that our proprietary platform
technology may be applicable to multiple additional solid
tumor indications that may provide significant market
opportunities. Despite meaningful advances in cancer
treatment, we believe a critical unmet need remains to
improve survival and quality of life for patients. The five-
year survival rates for many of the most common cancers
today are simply unacceptable. We believe that, in time,
Tumor Treating Fields will sit side by side with the other
cancer treatment modalities of surgery, radiation therapy
and pharmacology.

With more than $180 million of cash on hand to invest in
our future growth, we remain focused on the prudent
allocation of capital in order to realize the potential of our
platform technology. Novocure enters 2018 poised to
both improve the lives of cancer patients around the globe
and to build long-term value for our stakeholders.

NOVOCURE 2017 ANNUAL REPORT

a significant unmet need in
cancer survival remains

Medical advancements have led to dramatic
improvements in cancer survival in the last 50
years. In the United States, five-year survival for all
cancers rose from 49 percent in the 1970s to 69
percent in this decade. However, increases in
long-term survival are not universal across cancer
type. People diagnosed with some of the most
aggressive forms of cancer are significantly less
likely to live five years or longer. For many people
diagnosed with such cancers, traditional
treatments aren’t enough.

PANCREATIC CANCER

223,000