Fennec Pharmaceuticals’ Earnings Call Highlights Growth and Expansion

Fennec Pharmaceuticals ((TSE:FRX)) has held its Q1 earnings call. Read on for the main highlights of the call.

Fennec Pharmaceuticals’ recent earnings call conveyed a positive sentiment, highlighting strong revenue growth and successful international expansion. The company made significant strides in strategic targeting and adoption, although it continues to face challenges in managing cash burn and improving patient adherence.

Strong Revenue Growth

Fennec Pharmaceuticals reported net product sales of approximately $8.8 million for the first quarter of 2025. This reflects an impressive 18% growth compared to the same period last year and an 11% increase over the fourth quarter of 2024. This growth underscores the company’s robust performance in the market.

Expansion of PEDMARK

PEDMARK, Fennec’s flagship product, has been successfully launched commercially in Germany and the UK, with recent acceptance for use in Scotland. These developments mark crucial steps in Fennec’s mission to broaden access across the European Union and the UK, enhancing its international footprint.

Strategic Targeting and Adoption

The implementation of a sophisticated targeting model has led to early traction with tier 1 targets, expanding PEDMARK’s adoption into key institutions such as Tampa General Hospital and City of Hope. This strategic approach is pivotal for the company’s growth in key segments.

Positive Momentum in AYA Segment

There is significant adoption and interest in the adolescent and young adult (AYA) segment, with approximately 20,000 cisplatin chemotherapy patients treated annually in key tumor types. This segment presents a substantial market opportunity for Fennec.

Reduction in Selling and Marketing Expenses

The company successfully reduced its selling and marketing expenses to $2.9 million in Q1 2025, down from $5.2 million in Q1 2024. This reduction is attributed to the elimination of European pre-commercialization activities, reflecting efficient cost management.

Cash Burn and Operating Expenses

Fennec burned approximately $4 million in cash in Q1 2025, maintaining high cash operating expenses. This remains a challenge for the company as it seeks to optimize its financial operations.

Challenges in Patient Adherence

Patient adherence in the AYA segment stands at around 50%, indicating significant room for improvement in ensuring patients complete their full treatment courses. Addressing this issue is crucial for maximizing treatment efficacy.

Increased General and Administrative Expenses

General and administrative expenses rose to $6.1 million in Q1 2025 from $4.1 million in Q4 2024, largely due to noncash-based stock compensation. This increase highlights the need for careful management of administrative costs.

Forward-Looking Guidance

Fennec Pharmaceuticals provided forward-looking guidance emphasizing its focus on enhancing field execution and supporting sustainable growth in key PEDMARK segments. The company estimates that approximately 20,000 cisplatin chemotherapy patients are treated annually in the AYA segment, a market larger than the pediatric segment. With cash and cash equivalents at $22.6 million, Fennec expects full-year cash operating expenses to be around $33 million. The company also noted progress in international markets, with ongoing trials in Japan.

In summary, Fennec Pharmaceuticals’ earnings call reflected a positive outlook with strong revenue growth and successful international expansion. While the company faces challenges in managing cash burn and improving patient adherence, its strategic advancements in targeting and adoption position it well for future growth. The forward-looking guidance underscores Fennec’s commitment to sustaining its momentum and expanding its market presence.