NovoCure Ltd (NVCR), a leading oncology treatment company, saw its stock price plunge by 6.4% during pre-market trading on Thursday morning. This decline was driven by the company's mixed fourth-quarter earnings report, where it reported a wider net loss compared to the previous year, despite revenue growth meeting analyst expectations.
The key factor contributing to the stock's decline was NovoCure's reported net loss of $0.61 per diluted share for the fourth quarter of 2024, significantly worse than the expected loss of $0.34 per share. While the company's revenue rose 21% year-over-year to $161.3 million, matching analyst estimates, higher expenses weighed heavily on its profitability.
Notably, NovoCure's general and administrative expenses surged by a staggering 84% compared to the prior year, primarily due to a $36.1 million one-time stock-based compensation charge related to FDA approvals. This substantial increase in costs overshadowed the company's revenue growth, leading to a wider net loss and disappointing investors.
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