Fennec Pharmaceuticals Q2 2024 Financial Results and Business Update

Fennec Pharmaceuticals Inc., a specialty pharmaceutical company, reported its second-quarter financial results for the period ending June 30, 2024, with total net revenues amounting to $7.3 million. The company also appointed Jeffrey S. Hackman as its new Chief Executive Officer and a member of the Board of Directors. Fennec Pharmaceuticals holds approximately $43 million in cash, cash equivalents, and investment securities.

In his first statement as CEO, Jeff Hackman expressed enthusiasm about joining Fennec and highlighted the ongoing momentum of PEDMARK® within community oncology and the adolescent and young adult (AYA) sectors. Hackman emphasized the need to expand outreach to these groups to drive growth and improve patient outcomes.

Recent developments for the company include Hackman's appointment as CEO, which is expected to drive Fennec's strategic direction. The NCCN Adolescent and Young Adult (AYA) Guidelines have also been updated to remove specific pediatric wording. This change is crucial for expanding PEDMARK's accessibility to a broader patient base, enhancing its standing with payers and providers.

Fennec actively participated in several key scientific meetings in the second quarter, including the American Society of Clinical Oncology (ASCO), the Advanced Practice Providers Oncology Summit (APPOS), and the Oncology Nursing Society (ONS) annual meetings. These engagements reflect the company's commitment to advancing oncology care and fostering strong relationships within the healthcare community.

Financially, Fennec reported net product sales of $7.3 million for the three months ending June 30, 2024, which is a significant increase from the $3.3 million recorded in the same period in 2023. The company's cash reserves stood at $43.1 million on June 30, 2024, bolstered by the Norgine transaction and net sales.

Selling and marketing expenses rose to $4.7 million in the second quarter of 2024, compared to $2.3 million in the same period in 2023. This increase is attributed to additional efforts to expand the company's focus on the AYA and community oncology sectors. General and administrative expenses also saw a rise, increasing by $1.4 million to $6.9 million. This was due to higher consulting and professional costs related to pre-commercialization activities in Europe, which are expected to decrease following the Norgine transaction announced in March 2024.

The company reported a net loss of $5.6 million for the quarter ending June 30, 2024, a slight increase from the $5.4 million loss recorded in the same quarter in 2023. 

Fennec will host a conference call to discuss these results and provide further insights into their financial performance and strategic direction.

Financial Highlights:

- Net Sales: $7.3 million for Q2 2024, up from $3.3 million in Q2 2023.
- Cash Position: $43.1 million in cash and equivalents as of June 30, 2024.
- Selling and Marketing Expenses: Increased to $4.7 million from $2.3 million in the previous year.
- General and Administrative Expenses: Rose by $1.4 million to $6.9 million.
- Net Loss: $5.6 million for Q2 2024, compared to $5.4 million in Q2 2023.

Balance Sheet Data (in thousands):

- Total Assets: $63,161 as of June 30, 2024.
- Total Liabilities: $64,518 as of June 30, 2024.
- Shareholders' Deficit: $(1,357) as of June 30, 2024.

About PEDMARK®:

PEDMARK® is the first FDA-approved therapy aimed at reducing the risk of ototoxicity associated with cisplatin treatment in pediatric patients with localized, non-metastatic solid tumors. It is a unique formulation of sodium thiosulfate, available in single-dose, ready-to-use vials for intravenous use. PEDMARK has shown efficacy and safety across two Phase 3 clinical studies, COG ACCL0431 and SIOPEL 6.

About Fennec Pharmaceuticals:

Fennec Pharmaceuticals is focused on developing and commercializing treatments to mitigate platinum-induced ototoxicity in pediatric patients. PEDMARK® received FDA approval in September 2022 and European Commission approval in June 2023. The company aims to continue its efforts to improve oncology care and patient outcomes through innovative therapies.

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