Novocure announced a series of actions to strengthen and optimize business operations to support near-term growth drivers and long-term value creation. The plan includes an expected reduction in residual operating expenses of approximately $60 million, enabling the Company to fund future growth priorities without an associated increase in expected forward operating cash burn. Novocure continues to focus resources on its global commercial infrastructure and launch preparation ahead of its anticipated indication in metastatic non-small cell lung cancer and on high-potential research and development programs. Key elements of the plan include: Portfolio prioritization Novocure has taken a holistic review of operating expenses and has focused resources on the areas of greatest anticipated value creation, intended to balance near-term and long-term growth opportunities.
Novocure continues to invest in launch readiness, including field-based commercial and field-based medical team hiring, for the anticipated approval of Tumor Treating Fields therapy for the treatment of metastatic non-small cell lung cancer following progression on or after platinum-based therapies. Novocure 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 has prioritized development investments on a sharply focused list of randomized clinical trials ?
TRIDENT, KEYNOTE D58 and LUNAR-2 ? which have the potential to drive the greatest value in solid tumors where Tumor Treating Fields therapy has established efficacy. Strategic restructuring In conjunction with its portfolio prioritization, Novocure is streamlining its operational expenses.
Novocure?s plan to reduce residual operating expenses by approximately $60 million includes a planned reduction in headcount of approximately 200 colleagues, 13% of its current workforce. Field-based commercial and field-based medical employees are minimally affected. Novocure expects to incur one-time costs related to the workforce reduction of approximately $7 million in the fourth quarter of 2023.
The anticipated cost savings are expected to offset growth investments and accelerate Novocure?s path to profitability.