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Fennec Pharmaceuticals (TSE:FRX)
TSX:FRX
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Fennec Pharmaceuticals
(TSX:FRX)
57Neutral
Positive Factors
Commercialization
European commercial rollout advancing with Fennec's partner Norgine receiving positive guidance from NICE and launching PEDMARQSI in Germany.
Market Expansion
Fennec remains poised to reap benefits from market expansion to the adolescent and young adult (AYA) community with payor reimbursement, as well as product adoption within prominent academic centers, including Cedars-Sinai in Los Angeles, CA and Mount Sinai in New York, NY.
Reimbursement Success
Fennec surpassed 90% reimbursement in the AYA population for PEDMARK in 3Q24, indicating a strong position in this significant market segment.
Negative Factors
Financial Performance
Fennec Pharmaceuticals' 3Q24 financial results missed revenue and bottom-line forecasts, indicating challenges in meeting financial expectations.
Quarterly Revenue
The company recorded product revenue totaling only $7M, which actually represented a modest quarter-over-quarter decline vs. 2Q24.
Revenue Projections
The full-year 2025 total revenue estimate has been modestly reduced to $46.7M from the prior estimate of $48.4M.
Fennec Pharmaceuticals (FRX) vs. S&P 500 (SPY)
Market Cap
$254.14M
Dividend YieldN/A
Average Volume (3M)606.00
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth125.38%
EPS Growth99.20%
CountryCA
Employees32
SectorHealthcare
Sector Strength65
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.09
Shares Outstanding27,594,007
10 Day Avg. Volume592
30 Day Avg. Volume606
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.67
Price to Cash Flow (P/CF)-20.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.03Price Target Upside117.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Fennec Pharmaceuticals Business Overview & Revenue Model
Company DescriptionFennec Pharmaceuticals Inc. (FRX) is a biopharmaceutical company focused on the development and commercialization of innovative treatments for cancer patients. The company is primarily known for its efforts in developing PEDMARK™, a formulation aimed at preventing ototoxicity, or hearing loss, in pediatric patients undergoing chemotherapy with cisplatin, a widely used chemotherapy drug. Fennec Pharmaceuticals operates within the pharmaceutical sector, with an emphasis on oncology and pediatric care.
How the Company Makes MoneyFennec Pharmaceuticals generates revenue primarily from the commercialization and sales of its core product, PEDMARK™. The company makes money by marketing and distributing PEDMARK™ to healthcare providers and institutions that treat pediatric cancer patients. Revenue streams include direct sales to hospitals and clinics, as well as partnerships with distributors and other pharmaceutical companies that help in expanding the reach of their product. Fennec Pharmaceuticals may also engage in licensing agreements or collaborations with larger pharmaceutical firms to enhance the development and distribution of its products. Additionally, the company may receive funding through grants or milestone payments from strategic partnerships aimed at advancing their research and development efforts.
Fennec Pharmaceuticals Financial Statement Overview
Summary
Fennec Pharmaceuticals demonstrates strong revenue growth and improved cash flow generation, critical for its biotechnology operations. However, the company faces significant challenges with profitability and a weak balance sheet, marked by negative equity and high leverage.Income Statement
Fennec Pharmaceuticals has shown significant revenue growth, with a TTM revenue of $47.5M compared to $21.3M in the previous year, indicating a strong upward trajectory. However, the company continues to face profitability challenges, with a negative net profit margin of -0.9% despite improvements in gross profit and EBITDA margins. The EBIT margin remains low at 5.4%, reflecting operational inefficiencies that need addressing.65
Positive
Balance Sheet
The balance sheet is concerning, with negative stockholders' equity of -$5.9M, indicating potential financial instability. The debt-to-equity ratio is not meaningful due to the negative equity, but the high total debt of $19.3M suggests a leveraged position. The equity ratio is also negative, reflecting an imbalance in the company's capital structure.40
Negative
Cash Flow
The company has improved its operating cash flow significantly, with a TTM operating cash flow of $26.98M compared to negative figures in previous years. The free cash flow is positive at $26.98M, indicating good cash generation ability despite net losses. However, the reliance on financing activities in prior years highlights a potential risk if external funding becomes constrained.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 47.54M | 21.25M | 1.53M | 0.00 | 170.00K | 0.00 | Gross Profit |
| 44.35M | 19.99M | 1.45M | 0.00 | 170.00K | 0.00 | EBIT |
| 2.57M | -12.77M | -22.59M | -17.22M | -17.89M | -13.01M | EBITDA |
| 4.67M | -12.36M | -22.59M | -17.18M | -17.98M | -13.01M | Net Income Common Stockholders |
| -436.00K | -16.05M | -23.86M | -17.46M | -17.92M | -12.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 348.00K | 13.27M | 23.77M | 21.10M | 30.34M | 13.65M | Total Assets |
| 470.00K | 26.86M | 26.94M | 22.41M | 31.42M | 14.15M | Total Debt |
| 0.00 | 30.95M | 24.90M | 4.99M | 0.00 | 0.00 | Net Debt |
| -348.00K | 17.68M | 1.13M | -16.11M | -30.34M | -13.65M | Total Liabilities |
| 430.00K | 38.49M | 29.51M | 6.64M | 2.35M | 2.27M | Stockholders Equity |
| 40.00K | -11.62M | -2.57M | 15.77M | 29.07M | 11.88M |
| Cash Flow | Free Cash Flow | ||||
| 26.98M | -17.14M | -18.06M | -14.22M | -15.60M | -9.06M | Operating Cash Flow |
| 26.98M | -17.14M | -18.06M | -14.22M | -15.60M | -9.06M | Investing Cash Flow |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Financing Cash Flow |
| -13.62M | 6.64M | 20.73M | 4.98M | 32.29M | -71.00K |
Fennec Pharmaceuticals Technical Analysis
Neutral
9.21
Price Trends
9.34
Negative
8.67
Positive
8.14
Positive
Market Momentum
-0.03
Positive
46.29
Neutral
13.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FRX, the sentiment is Neutral. The current price of 9.21 is below the 20-day moving average (MA) of 9.40, below the 50-day MA of 9.34, and above the 200-day MA of 8.14, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:FRX.
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
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Performance Comparison
TSE:FRX
Fennec Pharmaceuticals
9.21
-5.83
-38.76%
TSE:MDNA
Medicenna Therapeutics Corp
0.97
-0.89
-47.85%
Fennec Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -6.21% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, successful international launches, and strong financial management. However, increased operating expenses and challenges in awareness and adoption of PEDMARK, particularly in the AYA segment, were noted.Highlights
Significant Revenue Growth
Fennec Pharmaceuticals grew revenues by approximately 40% year-over-year, reaching $29.6 million in net product sales for fiscal year 2024, compared to $21.3 million in 2023.
PEDMARK Market Expansion
PEDMARK is gaining traction in select major academic centers across the U.S. and expanding into the adolescent and young adult (AYA) segment, with institutions such as UCLA, Fred Hutchinson Cancer Center, Mount Sinai, and Henry Ford Cancer Institute integrating PEDMARK into their treatment plans.
International Launch Success
The commercial launch of PEDMARQSI in Germany and the U.K. has been successful with promising initial revenue streams expected. The U.K. set a list price of £8277, and Germany's public price is more than €10,500 per vial.
Strong Financial Position
Cash and cash equivalents were $26.6 million as of December 31, 2024, with a strategic early repayment of $13 million of the Company's convertible debt, saving approximately $1.5 million in future annual interest payments.
Lowlights
Increased Operating Expenses
Selling and marketing expenses increased to $18.4 million in fiscal year 2024 from $12.1 million in fiscal year 2023, largely due to increased payroll and marketing expenses focusing on the AYA population.
Challenges in Awareness and Adoption
Despite progress, there are challenges in awareness and adoption of PEDMARK, particularly in the AYA segment where many physicians are still not aware of the availability of PEDMARK for preventing cisplatin-induced ototoxicity.
Company Guidance
During Fennec Pharmaceuticals' fourth quarter and full year 2024 earnings call, the company provided guidance indicating a strong growth trajectory for 2025, driven by the PEDMARK strategy to address cisplatin-induced ototoxicity (CIO). Key metrics shared included a 40% revenue growth in 2024, with $29.6 million in net product sales, and a cash burn of only $0.6 million in Q4 2024. The company highlighted the expansion of PEDMARK's market, targeting the adolescent and young adult (AYA) segment, which represents approximately 20,000 cisplatin patients annually in the U.S., and has a favorable reimbursement profile. The product has been integrated into treatment plans at major centers like UCLA and Mount Sinai, signaling broader market acceptance. Internationally, Fennec initiated PEDMARQSI sales in the UK and Germany, with prices set at £8,277 and over €10,500 per vial, respectively. The company anticipates a decision on expanding PEDMARK's NCCN guidelines by mid-2025, which could further boost access and reimbursement pathways. Additionally, the company reported its cash position at $26.6 million by the end of 2024, following a $13 million debt repayment, and outlined expectations for operating expenses to remain similar in 2025, focusing on increased marketing and headcount to support growth.Fennec Pharmaceuticals Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Fennec Pharmaceuticals Achieves Strong Growth and Expands Market Reach in 2024
Positive
Mar 26, 2025
Fennec Pharmaceuticals reported a 40% increase in full-year net product sales for PEDMARK® in 2024, reaching $29.6 million, with significant growth in the adolescent and young adult segment. The company has made strategic moves to strengthen its financial position, including early repayment of $13 million of its convertible debt, and expanded its market reach with the commercial launch of PEDMARQSI® in the UK and Germany, positioning itself for further growth in 2025.
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Fennec Pharmaceuticals Reports Strong 2024 Financials and Expands Global Reach
Positive
Mar 10, 2025
Fennec Pharmaceuticals reported a 40% increase in full-year net product sales for 2024, driven by the adoption of PEDMARK in the adolescent and young adult segment and its commercial launch in the UK and Germany. The company also completed an early repayment of $13 million of its convertible debt, optimizing its balance sheet and saving on future interest payments. With ongoing clinical trials in Japan and strategic partnerships in Turkey and the Gulf Cooperation Council countries, Fennec is poised for further international expansion. These developments are expected to enhance shareholder value and solidify the company’s position in the pharmaceutical industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.