What's driving NVCR's EPS growth in 2024?

Novocure's EPS growth in 2024 is primarily driven by strong revenue growth and improved approval rates in key markets, despite significant investment in research and development and sales and marketing expenses.

1. **Revenue Growth**: Novocure's total revenue for 2024 reached $605.22 million, with notable contributions from the United States, Germany, Japan, and other international markets. This growth is a result of successful product launches, such as Optune Gio and Optune Lua, and improved approval rates in key regions.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|NVCR|NVCR.O|Novocure|2024 Q1|13.357941431634773|1.38503E8|185|
|NVCR|NVCR.O|Novocure|2024 Q2|19.281877970028006|1.50356E8|185|
|NVCR|NVCR.O|Novocure|2024 Q3|21.81415477415352|1.55095E8|185|
|NVCR|NVCR.O|Novocure|2024 Q4|20.542067810799498|1.61266E8|185|

2. **Market Expansion**: The company has seen a 22% year-over-year increase in net revenues for Q3 2024, driven by active patient growth and improved approval rates in the US. Additionally, Novocure has achieved FDA approval for Optune Lua to treat non-small cell lung cancer, further expanding their therapeutic options.
3. **Cost Management**: Despite the revenue growth, Novocure faced challenges with gross margin, reporting a net margin of -27.86%. This indicates that while revenue is increasing, the company is still facing significant costs that impact profitability. The company's research and development expenses decreased by 1% to $55.0 million, and sales and marketing expenses decreased by 3% to $56.6 million compared to the same period in 2023. However, the overall expenses are still substantial, which affects the net profit margin.

|code|Ticker|Name|Date|Net Profit Margin YoY|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|
|NVCR|NVCR.O|Novocure|2024 Q1|35.5597106001225|-27.985|185|
|NVCR|NVCR.O|Novocure|2024 Q2|43.8900647550229|-24.9724|185|
|NVCR|NVCR.O|Novocure|2024 Q3|45.6868439525662|-23.1342|185|
|NVCR|NVCR.O|Novocure|2024 Q4|31.457536888613358|-27.8621|185|

4. **Strategic Transitions**: Novocure is undergoing significant executive transitions, including the retirement of the long-time CEO, which may impact strategic continuity. These transitions could potentially affect the company's operational efficiency and profitability.

In conclusion, Novocure's EPS growth in 2024 is driven by successful product launches, market expansion, and improved approval rates, despite the challenges posed by high research and development and sales and marketing expenses, and the impact of strategic transitions.