Novocure Inc. (NASDAQ:NVCR) saw its shares decline 12% on Thursday after the Centers for Medicare & Medicaid Services (CMS) revoked the company’s billing privileges effective retroactively to December 17, 2025. The company disclosed the development in a Securities and Exchange Commission filing.
In the filing, Novocure said the revocation arose 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." The company has submitted a Corrective Action Plan to CMS and indicated it expects its billing privileges to be reinstated, though it cannot predict the timing of any reinstatement.
While the billing privileges remain suspended, Novocure will continue to provide services to existing patients and accept new patients. However, the company is unable to bill Medicare, Medicare Advantage and other CMS-related programs during the suspension period.
Novocure estimated it will be unable to recognize approximately $13 million in monthly revenue from CMS payors until billing privileges are restored. The company said that once privileges are reinstated it plans to attempt billing for services rendered during the suspension, but it acknowledged uncertainty about how much of those charges will ultimately be recoverable.
The company, which develops tumor treating fields devices for cancer therapy, cautioned in its SEC filing that "the ultimate outcome, timing of resolution and financial impact cannot be determined at this time." The disclosure underscores both the operational continuity of patient care and the financial ambiguity tied to the administrative action.
Investors reacted to the announcement by selling shares, with the 12% decline reflecting concern about the potential revenue shortfall tied to the pause in CMS billings and the uncertain timeline for resolution.
Clear summary
CMS has revoked Novocure's Medicare billing privileges retroactively to December 17, 2025, citing an administrative re-validation issue. Novocure has filed a Corrective Action Plan and continues to serve patients but cannot bill CMS-related payors, which it says will cost roughly $13 million in revenue each month until privileges are reinstated. Recoverability of suspended charges is uncertain.
Key points
- Novocure stock fell 12% following CMS's revocation of billing privileges.
- The revocation is attributed to "an administrative process issue" tied to triannual re-validation, not a substantive qualification failure.
- The company estimates about $13 million per month in revenue from CMS payors will not be recognized until billing rights are restored.
Risks and uncertainties
- Timing risk - The company cannot predict when CMS billing privileges will be reinstated, creating uncertainty for near-term revenue recognition.
- Recoverability risk - Although Novocure plans to bill for services provided during the suspension once privileges are restored, the company stated it is uncertain how much of those charges will be recoverable.
- Revenue impact - The suspension effectively pauses billing to Medicare, Medicare Advantage and other CMS-related programs, affecting the healthcare and medical device sectors' exposure to CMS payment flows.