Fennec Pharmaceuticals (FENC)
NASDAQ:FENC
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Fennec Pharmaceuticals
(NASDAQ:FENC)
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Rating:60Neutral
Price Target:
$9.50
▲(39.91% Upside)
Action:N/A
Date:06/17/26
The score is driven primarily by improving but still mixed fundamentals: strong revenue growth and exceptional gross margins are offset by ongoing losses and continued TTM cash burn, despite a notably de-risked (zero-debt) balance sheet. The earnings call adds support with accelerating sales and strong operational traction, while technicals are neutral overall and valuation remains pressured due to negative earnings.
Positive Factors
High gross margins & revenue growth
Sustained revenue scale with ~92% gross margins indicates very attractive product-level economics. High margins provide durable profit leverage as sales scale, enabling the company to absorb SG&A and R&D investments while moving toward operating profitability if commercial traction continues.
Negative Factors
Persistent cash burn
Ongoing negative operating and free cash flow is a structural constraint until sustained positive cash generation is achieved. Continued burn requires external financing, partnerships, or milestone receipts, which can dilute shareholders or force trade-offs in commercial investment pacing.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & revenue growth
Sustained revenue scale with ~92% gross margins indicates very attractive product-level economics. High margins provide durable profit leverage as sales scale, enabling the company to absorb SG&A and R&D investments while moving toward operating profitability if commercial traction continues.
Read all positive factors
Fennec Pharmaceuticals (FENC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$311.24M
Dividend YieldN/A
Average Volume (3M)329.74K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth64.98%
EPS Growth42.43%
CountryUS
Employees32
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.30
Shares Outstanding34,737,030
10 Day Avg. Volume214,140
30 Day Avg. Volume329,741
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)6.29
Price to Sales (P/S)4.94
P/FCF Ratio-15.03
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue4.23
Enterprise Value/Gross Profit4.59
Enterprise Value/Ebitda-37.88
Forecast
1Y Price Target
$15.50Price Target Upside128.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.27
Revenue Forecast (FY)$69.18M
Fennec Pharmaceuticals Business Overview & Revenue Model
Company Description
Fennec Pharmaceuticals Inc. operates as a biopharmaceutical firm. Its leading investigational drug in clinical development is PEDMARK, a specialized formulation of sodium thiosulfate. This treatment is designed to shield young cancer patients from...
How the Company Makes Money
Fennec makes money primarily by selling PEDMARK in the United States. Revenue is generated from product sales to customers in the pharmaceutical distribution and/or specialty pharmacy channel (and ultimately to treatment centers and hospitals), wi...
Fennec Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented multiple material commercial and clinical positives: strong top-line acceleration (+73% YoY), meaningful operational traction from the Fennec HEARS hub (48% QoQ infusion increase, 80% conversion and adherence), expanded commercial reach (prescriber targets expanded from ~1,300 to >5,000) and growing clinical momentum via ISTs and ASCO visibility. Counterbalancing these positives are higher near-term operating expenses (~$14M in Q1, ~$50M expected for 2026 with front-loaded spend), some near-term cash seasonality with Q2 expected to be lower than Q1, and a missed German milestone from partner Norgine. Overall, the highlights and catalysts materially outweigh the lowlights, with management emphasizing that cash plus projected revenues should fund operations and that commercial investments are already showing early returns.Positive Updates
Strong Revenue Growth
Net product sales of $15.1M in Q1 2026 versus $8.8M in Q1 2025, representing ~73% year-over-year growth and marking the sixth consecutive quarter of increased net product sales since the new commercial leadership.
Negative Updates
Rising Operating Expenses
Q1 OpEx (R&D and SG&A, excluding stock-based comp) was approximately $14M, a year-over-year increase of ~$6M (prior comparable quarter implied at ~$8M), driven primarily by increased SG&A, marketing investment and expanded commercial headcount. Company expects approximately $50M in cash OpEx for 2026 with over 60% of those expenses incurred in H1 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Net product sales of $15.1M in Q1 2026 versus $8.8M in Q1 2025, representing ~73% year-over-year growth and marking the sixth consecutive quarter of increased net product sales since the new commercial leadership.
Read all positive updates
Company Guidance
On the call management gave specific 2026 financial and operational guidance: they expect roughly $50 million in cash OpEx for 2026 with >60% of those expenses in H1, reported Q1 net product sales of $15.1M (up ~73% YoY from $8.8M), Q1 OpEx (R&D + SG&A ex stock comp) of about $14M (up ~$6M YoY), cash & cash equivalents of $40.1M as of March 31, 2026, a Q1 net cash increase of $3.3M (including $2.3M operating cash flow and ~$1M from option exercises), and they expect Q2 ending cash to be lower, Q3 cash to be positive and to grow in H2; they also said cash + investments as of March 31 plus projected PEDMARK revenues should be sufficient to fund the business under the current plan. Operational KPIs cited include expansion of prescriber targets from ~1,300 to >5,000 (5,400 referenced), a 48% QoQ increase in completed infusions through Fennec HEARS, ~50/50 in-office vs. at-home infusion mix, HEARS conversion rates hitting an 80% benchmark, adherence ~80% (big improvement vs. a year ago), April HEARS demand >50% of Q1 HEARS demand with Q2 tracking to exceed Q1, and six consecutive quarters of net product sales growth; they do not expect the German milestone payment from partner Norgine but noted royalties will begin in the mid-teens as PEDMARQSI sales ramp and that further milestones (part of a >$200M program, ~half tied to sales) could be achievable by year-end.Fennec Pharmaceuticals Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.17M | 44.64M | 47.54M | 21.25M | 1.53M | 0.00 |
| Gross Profit | 47.19M | 40.88M | 44.35M | 19.99M | 1.45M | 0.00 |
| EBITDA | -5.72M | -7.45M | 4.80M | -12.65M | -22.74M | -17.18M |
| Net Income | -8.81M | -9.74M | -436.00K | -16.05M | -23.86M | -17.46M |
Balance Sheet | ||||||
| Total Assets | 71.64M | 70.07M | 44.95M | 26.86M | 26.94M | 22.41M |
| Cash, Cash Equivalents and Short-Term Investments | 40.08M | 36.72M | 26.63M | 13.27M | 23.77M | 21.10M |
| Total Debt | 0.00 | 0.00 | 19.34M | 30.95M | 24.90M | 4.99M |
| Total Liabilities | 34.06M | 35.02M | 50.82M | 38.49M | 29.51M | 6.64M |
| Stockholders Equity | 37.58M | 35.05M | -5.87M | -11.62M | -2.57M | 15.77M |
Cash Flow | ||||||
| Free Cash Flow | -7.86M | -14.67M | 26.98M | -17.14M | -18.06M | -14.22M |
| Operating Cash Flow | -7.86M | -14.67M | 26.98M | -17.14M | -18.06M | -14.22M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 25.62M | 25.01M | -13.62M | 6.64M | 20.73M | 4.98M |
Fennec Pharmaceuticals Risk Analysis
Fennec Pharmaceuticals disclosed 69 risk factors in its most recent earnings report. Fennec Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fennec Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $311.24M | -36.81 | -55.13% | ― | 64.98% | 42.43% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | C$164.36M | -1.76 | -51.42% | ― | ― | 6.61% | |
46 Neutral | C$554.79M | -8.41 | -50.81% | ― | ― | -34.19% | |
45 Neutral | C$114.57M | -34.25 | -66.34% | ― | ― | 77.30% |
* Healthcare Sector Average
FENC
Fennec Pharmaceuticals
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Fennec Pharmaceuticals Corporate Events
Executive/Board ChangesShareholder Meetings
Fennec Shareholders Approve Governance, Compensation and Equity Plans
Positive
Jun 10, 2026
On June 10, 2026, Fennec Pharmaceuticals Inc. held its annual meeting of shareholders, at which investors elected five directors to serve until the next annual meeting and ratified the appointment of Haskell White LLP as the company’s indep...
Business Operations and StrategyProduct-Related Announcements
Fennec Showcases New PEDMARK Data at ASCO 2026
Positive
May 22, 2026
On May 21, 2026, Fennec Pharmaceuticals announced that four independently led studies on PEDMARK will be featured at the 2026 American Society of Clinical Oncology Annual Meeting, expanding evidence for its use across multiple tumor types and broa...
Business Operations and StrategyProduct-Related Announcements
Fennec Showcases New PEDMARK Data at 2026 ASCO
Positive
Apr 22, 2026
On April 21, 2026, Fennec Pharmaceuticals announced that four abstracts evaluating its otoprotective therapy PEDMARK (sodium thiosulfate injection) were accepted for presentation or publication at the 2026 American Society of Clinical Oncology Ann...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.