NovoCure Ltd. (NVCR), a leading oncology treatment company, saw its stock price plummet by 8.38% in the pre-market trading session on Thursday, following the release of its mixed fourth-quarter 2024 earnings report.
While the company reported a 21% year-over-year increase in revenue, reaching $161.3 million and matching analyst expectations, its profitability took a hit due to higher expenses. NovoCure reported a wider net loss of $0.61 per diluted share for the quarter, significantly worse than the expected loss of $0.34 per share.
The primary factor contributing to the larger-than-anticipated loss was a substantial 84% surge in general and administrative expenses compared to the prior year. This increase was largely driven by a $36.1 million one-time stock-based compensation charge related to FDA approvals for the company's Tumor Treating Fields (TTFields) therapy.
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