Fennec Pharmaceuticals Announces Q1 2024 Financials and Business Update

Fennec Pharmaceuticals Inc., a specialty pharmaceutical company based in Research Triangle Park, North Carolina, reported impressive financial results and strategic advancements in the first quarter of 2024. The company achieved total net revenues of $25.4 million, including $18.0 million from a licensing deal with Norgine, and $7.4 million from net product sales of PEDMARK®. This marked a significant increase from the same period in 2023 when their total net revenues stood at $1.7 million.

The company executed an exclusive licensing agreement with Norgine, enabling the commercialization of PEDMARQSI™ in Europe, Australia, and New Zealand. Under this agreement, Fennec received an upfront payment of approximately $43.2 million, with the potential for an additional $230 million in commercial and regulatory milestones, and double-digit tiered royalties. The firm has also seen its cash and cash equivalents swelling to $51.2 million by the end of March 2024, up from $13.3 million at the end of December 2023.

A critical milestone for Fennec has been the amendment of the permanent J-code for PEDMARK on April 1, 2024. This amendment specifies the non-interchangeability of PEDMARK with other sodium thiosulfate formulations, reinforcing its unique position in the market.

Fennec's CEO, Rosty Raykov, highlighted the strategic focus on the outpatient oncology community, particularly the adolescent and young adult (AYA) population where PEDMARK use has been endorsed by the National Comprehensive Cancer Network (NCCN). The company's participation in several key oncology conferences has further bolstered its market presence.

Financially, the company recorded significant growth in product sales and licensing revenue, posting net product sales of $7.4 million and $18.0 million in licensing revenue for the first quarter of 2024. This is a stark contrast to the first quarter of 2023, which saw net product sales of just $1.7 million.

The company's operational expenses also reflected its growth trajectory. Selling and marketing expenses more than doubled from $2.5 million in the first quarter of 2023 to $5.2 million in the same period of 2024. General and administrative expenses rose to $5.8 million, compared to $4.3 million in the previous year, driven by increased consulting and professional costs associated with European pre-commercialization activities.

Fennec's net income for the quarter stood at $12.8 million, a significant turnaround from a net loss of $6.1 million in the first quarter of 2023. This translates to basic earnings per share of $0.47 and diluted earnings per share of $0.41, compared to a loss per share of $0.23 in the previous year.

The company remains well-capitalized, with a strong cash position expected to fund operations for at least the next twelve months. This financial stability is critical as Fennec continues to invest in the commercialization and further development of PEDMARK®.

PEDMARK® holds a unique position as the first FDA-approved therapy to reduce the risk of ototoxicity associated with cisplatin in pediatric patients with localized, non-metastatic solid tumors. This condition, resulting from chemotherapy, can lead to permanent hearing loss. The formulation of PEDMARK, administered intravenously, has been proven effective in clinical trials.

The company’s robust financial health, coupled with strategic partnerships and endorsements, positions Fennec Pharmaceuticals well for future growth. The recent licensing agreement with Norgine and the amendment of the J-code represent significant steps forward, ensuring that PEDMARK remains a critical therapeutic option for pediatric cancer patients facing the risk of hearing loss due to chemotherapy. Fennec's continued focus on strategic initiatives and financial prudence sets a strong foundation for sustained success in the specialty pharmaceutical market.