Stock Markets February 25, 2026

Novocure Shares Rise After CMS Restores Medicare Billing Privileges

CMS rescinds earlier revocation tied to administrative re-validation; company says revenue recognition should be unaffected

By Jordan Park NVCR
Novocure Shares Rise After CMS Restores Medicare Billing Privileges
NVCR

Novocure Ltd. stock climbed 4.3% in premarket action Wednesday following a decision by the Centers for Medicare & Medicaid Services to reinstate the company's Medicare billing privileges for its U.S. unit. The restoration, communicated in a letter to Novocure Inc. on Monday, rescinded a prior revocation that had been applied retroactively. Novocure said the earlier revocation stemmed from an administrative issue related to triannual re-validation rather than a substantive failure to qualify, and the company continues to provide services to existing and new patients throughout the period in question.

Key Points

  • Novocure shares rose 4.3% in premarket trading on the CMS announcement reinstating Medicare billing privileges.
  • CMS rescinded a prior revocation and stated the company’s billing privileges are reinstated retroactively to December 17, 2025.
  • The revocation had been attributed to an administrative issue related to the company’s triannual re-validation; Novocure continued serving existing and new patients during the ineligibility period.

Novocure Ltd. (NASDAQ: NVCR) saw its shares trade higher in premarket activity Wednesday after the Centers for Medicare & Medicaid Services (CMS) told the company that its Medicare billing privileges have been reinstated. The notice, delivered to Novocure's U.S. subsidiary, Novocure Inc., was issued on Monday and rescinded an earlier revocation.

CMS noted that the reinstatement of Medicare billing privileges will be retroactive to December 17, 2025. That same effective date had been attached to the prior revocation, which CMS enacted on January 29, 2026. According to statements from the company, the revocation resulted from an administrative process issue tied to the firm’s triannual re-validation and was not the consequence of a substantive failure to qualify for re-validation.

During the interval in which Medicare billing privileges were listed as revoked, Novocure maintained patient care operations. The company continued to provide services for existing patients and also accepted new patients. Novocure has indicated that it believes there will ultimately be no impact to its ability to recognize revenue for services delivered during the period when billing privileges were in question.

The CMS action removes a source of ambiguity around the company’s capacity to bill Medicare for its tumor treating fields therapy, a modality used in cancer treatment. By restoring billing privileges and making that restoration retroactive to December 17, 2025, the agency effectively reversed the previously announced revocation that had created short-term operational uncertainty.

Novocure’s public comments framed the earlier revocation as administrative rather than substantive. The company’s position is that continued patient care during the period of ineligibility and the retroactive reinstatement should prevent disruption to revenue recognition tied to those services. The CMS letter and Novocure’s subsequent statements together conclude the immediate regulatory uncertainty around Medicare billing for the therapy.

Risks

  • The initial revocation highlights administrative and regulatory process vulnerabilities that can create operational uncertainty for companies relying on Medicare reimbursement - affecting the healthcare and medical device sectors.
  • Novocure’s statement that it "believes there will ultimately be no impact" to revenue recognition leaves room for continued uncertainty until accounting and payer reconciliation are fully resolved - relevant for investors and reimbursement stakeholders.
  • The episode underscores how procedural compliance around re-validation can affect billing privileges, with implications for cash flow and payer relations in the oncology treatment market.

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