Novocure stock falls after CMS revokes billing privileges

Investing.com -- Novocure (NASDAQ: NVCR) stock fell 12% Thursday after the Centers for Medicare & Medicaid Services (CMS) revoked the company’s billing privileges for its products retroactive to December 17, 2025.

The medical device company disclosed in an SEC filing that the revocation stemmed from "an administrative process issue relating to the Company’s triannual re-validation and not due to a substantive failure on the Company’s part to qualify for re-validation."

While Novocure has filed a Corrective Action Plan with CMS and expects billing privileges to be reinstated, the company cannot predict when this will occur. During this period, Novocure continues to provide services to existing patients and accept new patients, but cannot bill Medicare, Medicare Advantage, and other CMS-related programs.

The company estimates it will be unable to recognize approximately $13 million in monthly revenue from CMS payors until its billing privileges are restored. Once reinstated, Novocure plans to attempt billing for services rendered during the suspension period, though it remains uncertain how much of these charges will be recoverable.

Novocure, which develops tumor treating fields devices for cancer therapy, emphasized in its filing that "the ultimate outcome, timing of resolution and financial impact cannot be determined at this time."

The stock decline reflects investor concern about the potential revenue impact and uncertainty regarding the timeline for resolving the administrative issue with CMS.

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