NovoCure Limited Ordinary Shares Morgan Stanley 24th Annual Global Healthcare Conference

Yeah, absolutely. Kelly, thanks for having us here today. We have had a great day at the Morgan Stanley conference. NovoCure as a company was founded a little bit over 25 years ago in Israel, and it was a classic story of innovation where a founder had a unique insight into how to disrupt cancer cell division using electric fields. The technology, over the course of 25 years, was advanced through multiple phase III programs, roughly $1 billion worth of research and development, and has really been shown, especially in glioblastoma, to have definitively changed long-term survival for cancer patients.

The way that I like to think about NovoCure at this stage is that we have spent the first 25 years taking a really novel approach to killing cancer cells, and again, it is electric fields, which we can talk more about, applied in a way that they have not been used before, such that it is very low toxicity, no systemic toxicity effectively, but the ability to target multiple different types of cancer. We have kind of crossed from the startup phase of the company to now where we have built out a global, sustainable business. The question now is where can we best apply Tumor Treating Fields to help extend survival?

Yeah, thank you. I have been joined through this process by Christoph, who we have really been side by side in that we came in to a really promising technology, and an engaged and wonderful team at NovoCure. What we lacked coming into the start of this year was really the focus and the discipline on where are we going to invest, where are we not going to invest, and moreover, for our existing business treating glioblastoma, how are we going to return that franchise to growth? I think, coming into this year, our major priorities were, one, find a way to grow the number of patients using the device to treat glioblastoma. Two is finding the best way to launch in our new indications treating pancreatic cancer and non-small cell lung cancer, specifically non-small cell lung cancer in Japan.

Then three, we also needed to take a hard look at some of our operating expenses and make sure, particularly on the R&D line, that we were investing in a way that would lead to an appropriate return on capital. I am pleased to say that we have accomplished all three of those initiatives through the first half of the year. Moreover, I think one of the other major changes we have made is that we have begun issuing guidance for the first time in company history so that we can really have a much more streamlined conversation with our investors.

Thank you. Well, I am happy to talk about it. Optune, as Kelly noted, Optune Geo was approved for newly diagnosed glioblastoma in the U.S. in 2015 and reached, at the time of peak market penetration, around early 2021. We more recently, starting end of last year and through the first two quarters of this year, have returned the business to growth, where it was this 8% year-over-year volume growth. We have done that through a couple of key initiatives. Number one, first and foremost, we have invested heavily into how we develop patient identification, segmentation, and targeting tools. Glioblastoma is thankfully a very rare disease. We are the only branded product in that disease, and so we do not have the luxury of having off-the-shelf tools. We really had to pioneer how do you find GBM patients.

Then the second area that we benefit from is that as we've launched our other products in non-small cell lung cancer and pancreatic cancer, we've effectively doubled our sales team. So we're able now to cover the practices that are high volume for GBM that we've covered for years and expand into the community practices that may only see one or two GBM patients each year.

We do think that as we get to the end of the year, the year-over-year comps will begin to get more challenging. But on an absolute basis, we are committed to continuing to grow GBM as a single-digit growth franchise. To put it in perspective, in the U.S., we think our penetration rate is about 35%-40% of the eligible patients. And for a product that has shown durable median overall survival, two-year survival, and really good patient tolerance, we don't see any reason why we can't continue to push that for several years.

Absolutely. Our current approval in glioblastoma is with what's known as the Stupp protocol. A patient will be diagnosed with glioblastoma, would receive surgery, roughly 90% of the patients receive surgery, followed by chemoradiation with temozolomide, and then maintenance temozolomide. Tumor Treating Fields from our clinical data set in EF14 was added at the time of the maintenance chemotherapy and showed an improvement in survival. What we're now studying is, in addition to building off the Stupp protocol, is adding pembrolizumab on top of Tumor Treating Fields to see if we can extend survival even farther. We view this as meaningful in 2 ways. One, any improvement in survival is still needed. Median overall survival is still now hovering around 21 months when patients are treated with Tumor Treating Fields, which is a great improvement, but there's more to be done.

The second part of this is that immune checkpoint inhibitors have consistently failed when applied in all brain neoplasms, and specifically glioblastoma. We think there's a secondary scientific clinical validation that Tumor Treating Fields does lead to a modulation of the tumor microenvironment, which leads to a better response to immune checkpoint inhibitors. That's a signal that we've seen in pilot studies, animal studies. We've seen it in our non-small cell lung cancer data. If we can replicate that in GBM, it's, I think, a tremendous win for us.