Lee

Lee asked about the expected prescription patterns for Optune Pax based on its approved label and what lessons from the Optune Lua (lung cancer) launch will be applied to ensure the success of Optune Pax.

Answer

CEO Frank Leonard highlighted that Optune Pax is approved for first-line, locally advanced pancreatic cancer, concurrent with nab-paclitaxel plus gemcitabine, targeting a highly motivated patient population with limited treatment options. CFO Christoph Brackmann added that the total addressable market for locally advanced pancreatic cancer in the U.S. is estimated at 15,000 patients annually.

Lee, calling in for Larry Biegelsen, congratulated Novocure on the Optune Pax approval and asked how the device would be prescribed based on the approved label, specifically inquiring about lessons learned from the Optune Lua lung launch that could ensure success for Optune Pax.

Answer

CEO Frank Leonard expressed satisfaction with the Optune Pax label and timing, highlighting its approval for locally advanced pancreatic cancer in a first-line setting with nab-paclitaxel plus gemcitabine. He emphasized targeting this highly motivated patient population with limited options. CFO Christoph Brackmann added that the estimated Total Addressable Market (TAM) for locally advanced pancreatic cancer in the U.S. is 15,000 patients annually.

Lee, on behalf of Larry Biegelsen, asked about XIIDRA's expected performance in 2026, considering the 2025 base-setting, recent payer changes, and anticipated net price improvement, specifically if mid-single-digit sales growth is expected with price offsetting volume decline. Lee also inquired about the company's confidence in achieving the 600 basis points of EBITDA margin expansion through 2028 to reach approximately 23%, and if margin improvement would occur in fairly equal steps over the next couple of years.

Answer

Chairman and CEO Brent Saunders confirmed expectations for mid-single-digit growth for XIIDRA. President of Global Pharmaceuticals and International Consumer Andrew Stewart discussed stable coverage and balancing affordability. CFO Sam Eldessouky clarified that slower TRX growth would be offset by better net pricing, with gross-to-nets expected to step down to the low 70s from the mid-70s. Mr. Saunders expressed increased confidence in achieving EBITDA margin expansion, citing Q4 2025 execution and foundational changes. He highlighted the company's 'full court press' with disciplined project teams across commercial and supply chain focused on margin improvement, aiming to meet or exceed goals.