NVCR - Novocure to eliminate 13% of workforce in restructuring effort

2023-11-28 07:51:52 ET

Novocure ( NASDAQ: NVCR ) announced on Tuesday plans to lay off 13% of its current workforce as part of a strategic restructuring to cut down on expenses.

The Root, Switzerland-based oncology company outlined a series of actions to strengthen and optimize business operations to support near-term growth drivers and long-term value creation.

The actions will result in a planned reduction in headcount of around 200 colleagues, leading to an approximate $60M reduction in the firm's residual operating expenses. Field-based commercial and field-based medical employees are minimally affected by the move.

"Decisions like these are deeply personal and challenging, because of the impact on our employees and their families. To those departing Novocure, I want to express my sincere gratitude for your hard work. Your contributions have influenced the lives of many cancer patients and your legacy will forever be intertwined with Novocure," said Novocure's chief executive officer Asaf Danziger.

The firm expects to incur one-time costs related to the workforce reduction of ~$7M in the fourth quarter of 2023.

In conjunction with its restructuring, Novocure ( NVCR ) is looking at portfolio prioritization, with a focus on metastatic non-small cell lung cancer launch and R&D activities in areas of greatest anticipated value creation.

The firm will deliver two phase 3 randomized clinical trial readouts in brain metastases from non-small cell lung cancer and locally advanced pancreatic cancer anticipated in 2024.

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