Novocure Is the Latest Medtech Company to Cut Jobs

This has been a challenging time for some medical device companies. Novocure is the latest firm to make cuts during 2023’s turbulent economy.

The Root, Switzerland-based company said it was cutting 13% of its workforce or 200 positions in an effort to reduce residual operating expenses of about $60 million. The firm said the anticipated cost savings are expected to offset growth investments and accelerate Novocure’s path to profitability.

The company said field-based commercial and field-based medical employees are minimally affected. The firm expects to incur one-time costs related to the workforce reduction of approximately $7 million in 4Q23.

“The initiatives announced today prioritize growth and maintain financial health and flexibility as we position our company for future profitability,” said Novocure’s CFO, Ashley Cordova. “These decisions were difficult, yet essential. With a more focused organization, we are confident that these initiatives will bolster Novocure’s position, enabling us to unlock our long-term potential and fulfill our mission.”

Novocure said its goal is to extend survival in some of the most aggressive forms of cancer through the development and commercialization of its therapy, Tumor Treating Fields therapy.

Novocure is in the middle of clinical trials.

The firm said it will deliver two phase 3 randomized clinical trial readouts in brain metastases from non-small cell lung cancer (METIS) and locally advanced pancreatic cancer (PANOVA-3) anticipated in 2024.

Novocure added that it has prioritized development investments on a sharply focused list of randomized clinical trials – TRIDENT, KEYNOTE D58, and LUNAR-2.

The layoffs come a few months after Novocure’s therapy failed in a late-stage trial to meet the main goal of improving survival rates in patients with a type of ovarian cancer, according to a report from Reuters. As a result, shares of the company hit a five-year low.