Organization

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

NovoCure Limited (including its consolidated subsidiaries, the "Company") was incorporated in the Bailiwick of Jersey and is principally engaged in the development, manufacture and commercialization of Tumor Treating Fields ("TTFields") devices, including Optune Gio and Optune Lua (collectively, its "Products"), for the treatment of solid tumor cancers. The Company currently markets its Products in the United States ("U.S."), Germany, Japan and certain other countries. The Company also has a License and Collaboration Agreement (the "Zai Agreement") with Zai Lab (Shanghai) Co., Ltd. ("Zai") to market the Company's Products in China, Hong Kong, Macau and Taiwan ("Greater China"). See Note 12.

During the year ended December 31, 2019, the Company implemented changes to its corporate entity operating structure, including transferring certain intellectual property to its Swiss subsidiary, primarily to align corporate entities with the Company’s evolving operations and business model. As of January 1, 2022, the effective place of daily management and control of the Company moved to Switzerland and the Company has become a Swiss tax resident.

In November 2023, the Company announced a series of actions to strengthen and optimize its business operations to support near-term growth drivers and long-term value creation. The plan included a reduction in headcount of approximately 200 employees or 13% of the Company's then current workforce. The Company expects to incur total one-time costs related to the workforce reduction of approximately $7,000 across the fourth quarter of 2023 and the first quarter of 2024. Restructuring costs (including severance pay, garden leave payments, etc.) in the amount of $6,231 were included in the financial statements for the year ended December 31, 2023, of which $262 are attributable to Cost of Goods Sold, $2,070 to Research and Development, $2,404 to Sales and Marketing and $1,495 to General and Administrative expenses. Of these amounts, $2,753 have been paid in 2023. The $6,231 is offset by forfeited equity-based compensation expense and accrual reversals in the amount of $9,313 and $3,041, respectively, which relate to the terminated employees' exits from the Company’s equity and cash incentive plans.