Novocure Ltd (NVCR) saw its loss narrow to $18.04 million, or $0.21 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $35.44 million, or $0.42 a share. Revenue during the quarter surged 167.22 percent to $34.88 million from $13.05 million in the previous year period. Gross margin for the quarter expanded 2771 basis points over the previous year period to 66.56 percent.
Operating loss for the quarter was $13.37 million, compared with an operating loss of $31.94 million in the previous year period.
“Our growth continued in the first quarter 2017. It was the ninth consecutive quarter of active patient growth since the first presentation of our EF-14 data in newly diagnosed glioblastoma (GBM). At the end of the quarter, we had more than 1,260 active patients on therapy,” said Asaf Danziger, Novocure’s chief executive officer. “Our 167% year-over-year revenue growth was driven by an expanding global base of active patients as well as coverage and contracting success in the U.S.”
Working capital declines
Novocure Ltd has witnessed a decline in the working capital over the last year. It stood at $211.55 million as at Mar. 31, 2017, down 9.68 percent or $22.67 million from $234.21 million on Mar. 31, 2016. Current ratio was at 7.63 as on Mar. 31, 2017, down from 8.96 on Mar. 31, 2016. Days inventory outstanding has decreased to 100 days for the quarter compared with 171 days for the previous year period. At the same time, days payable outstanding went down to 122 days for the quarter from 201 for the same period last year.
Debt increases substantially
Novocure Ltd has witnessed an increase in total debt over the last one year. It stood at $96.49 million as on Mar. 31, 2017, up 316.04 percent or $73.30 million from $23.19 million on Mar. 31, 2016. Novocure has witnessed an increase in long-term debt over the last one year. It stood at $96.49 million as on Mar. 31, 2017, up 316.04 percent or $73.30 million from $23.19 million on Mar. 31, 2016. Total debt was 36.46 percent of total assets as on Mar. 31, 2017, compared with 8.31 percent on Mar. 31, 2016. Debt to equity ratio was at 0.75 as on Mar. 31, 2017, up from 0.11 as on Mar. 31, 2016.
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