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Fennec Pharmaceuticals (TSE:FRX)
TSX:FRX

Fennec Pharmaceuticals (FRX) AI Stock Analysis

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TSE:FRX

Fennec Pharmaceuticals

(TSX:FRX)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
C$10.50
▲(2.34% Upside)
The score is primarily held back by mixed financial performance (TTM losses, renewed cash burn, and weak capitalization in the provided statements) and bearish technical signals (below key moving averages with negative MACD). Positive corporate events provide an offset through improved commercial momentum and clinical/financing progress, but not enough to outweigh the current financial and trend risks.

Fennec Pharmaceuticals (FRX) vs. iShares MSCI Canada ETF (EWC)

Fennec Pharmaceuticals Business Overview & Revenue Model

Company DescriptionFennec Pharmaceuticals Inc. operates as a biopharmaceutical company. Its product candidate in the clinical stage of development is PEDMARK, a formulation of sodium thiosulfate for the prevention of platinum-induced ototoxicity in pediatric cancer patients. The company was formerly known as Adherex Technologies Inc. and changed its name to Fennec Pharmaceuticals Inc. in September 2014. Fennec Pharmaceuticals Inc. was incorporated in 1996 and is based in Research Triangle Park, North Carolina.
How the Company Makes MoneyFennec Pharmaceuticals generates revenue primarily through the sale and distribution of its flagship product, PEDMARK. The company earns income by marketing this treatment to healthcare institutions, hospitals, and clinics specializing in pediatric oncology. Additionally, Fennec may enter into licensing agreements or partnerships with other pharmaceutical companies to expand the reach and accessibility of its products, thereby enhancing its revenue streams. The company may also receive milestone payments and royalties from such partnerships. Fennec's financial performance is heavily reliant on the successful commercialization of PEDMARK and its acceptance within the medical community.

Fennec Pharmaceuticals Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The call highlighted strong revenue growth and market adoption for PEDMARK, supported by strategic expansions and new accounts. However, increased operating expenses and dependency on market expansion present challenges. The momentum in PEDMARK's adoption and international expansion efforts suggest positive future prospects.
Q2-2025 Updates
Positive Updates
PEDMARK Revenue Growth
Revenue grew 33% year-over-year and 10% sequentially with net revenues of $9.7 million, marking the third consecutive quarter of growth.
Expanded Market Adoption
PEDMARK was added to the formulary of a large national oncology group for patients under 40, indicating broader market adoption.
Positive Quality Intervention Issued
NCODA issued a positive quality intervention (PQI) for PEDMARK, providing guidance to oncology care teams on its use.
International Expansion
PEDMARQSI launched in the UK and Germany, with further EU expansion planned, and positive traction reported.
New Accounts and Growth Strategy
Addition of 14 new accounts in Q2, including large community oncology groups, with continued activation expected in Q3.
Negative Updates
Increased Operating Expenses
Total cash operating expenses were approximately $11 million, an increase driven by marketing, headcount, and IP efforts.
Ongoing Litigation Costs
General and administrative expenses increased due to ongoing litigation and intellectual property expenses.
Dependency on Market Expansion
Significant reliance on EU expansion and pricing finalization in Germany for future milestone payments.
Company Guidance
During Fennec Pharmaceuticals' Second Quarter 2025 Earnings Call, the company provided optimistic guidance reflecting a strong growth trajectory. Revenue for the quarter reached $9.7 million, marking a 33% year-over-year increase and a 10% sequential growth, underscoring three consecutive quarters of growth. The company added 14 new accounts, signaling expanding adoption of PEDMARK, a therapy for preventing cisplatin-induced ototoxicity (CIO). CEO Jeff Hackman highlighted significant progress in awareness campaigns and payer-provider access, which are expected to drive future growth. Additionally, Fennec's partnership with Norgine in the EU, particularly in the UK and Germany, showed promising traction, with expectations of further milestones and royalty revenues. Operating expenses for the quarter were approximately $11 million, with a focus on marketing and intellectual property, and the company projected full-year operating expenses to align with the previous year’s $33 million. Overall, Fennec remains confident in achieving continued revenue growth and progressing towards cash profitability.

Fennec Pharmaceuticals Financial Statement Overview

Summary
Strong revenue scale and growth with very high gross margins (~93%), but TTM profitability deteriorated to a net loss (~-$6.9M) and cash flow reversed from strong 2024 generation to TTM cash burn (~-$8.0M). Balance-sheet risk remains elevated due to negative equity in the provided statements, despite debt reduction.
Income Statement
44
Neutral
Revenue scaled meaningfully from 2022–2024, and TTM (Trailing-Twelve-Months) revenue remains strong ($38.8M) with healthy growth versus the prior year (+16.5%). Gross margins are consistently very high (~93%), indicating strong product-level economics. However, profitability has been volatile: the company moved from modest positive operating profit in 2024 to operating and net losses in TTM (Trailing-Twelve-Months) (net loss of $6.9M; net margin ~-17.9%), which weakens earnings quality and visibility.
Balance Sheet
28
Negative
The balance sheet shows elevated financial risk due to negative shareholders’ equity in 2022–TTM (Trailing-Twelve-Months) (TTM equity ~- $4.5M) while carrying debt (TTM total debt ~$18.1M). Total assets increased versus 2023, but the capital structure remains pressured, and negative equity limits flexibility and makes leverage metrics less informative/less favorable. A key positive is that debt has come down from 2023 levels, but the overall solvency profile is still weak.
Cash Flow
36
Negative
Cash generation is inconsistent. 2024 delivered strong positive operating and free cash flow (~$27.0M), but TTM (Trailing-Twelve-Months) swung back to cash burn (operating and free cash flow of about -$8.0M), with free cash flow down sharply versus the prior period (growth ~-31.7%). This reversal suggests the business is not yet consistently self-funding, increasing reliance on financing or balance sheet resources.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue38.79M47.54M21.25M1.53M0.00170.00K
Gross Profit36.12M44.35M19.99M1.45M0.00170.00K
EBITDA-3.71M4.80M-12.65M-22.74M-17.18M-17.98M
Net Income-6.94M-436.00K-16.05M-23.86M-17.46M-18.11M
Balance Sheet
Total Assets49.21M44.95M26.86M26.94M22.41M31.42M
Cash, Cash Equivalents and Short-Term Investments21.93M26.63M13.27M23.77M21.10M30.34M
Total Debt18.09M19.34M30.95M24.90M4.99M0.00
Total Liabilities53.70M50.82M38.49M29.51M6.64M2.35M
Stockholders Equity-4.49M-5.87M-11.62M-2.57M15.77M29.07M
Cash Flow
Free Cash Flow-7.99M26.98M-17.14M-18.06M-14.22M-15.60M
Operating Cash Flow-7.99M26.98M-17.14M-18.06M-14.22M-15.60M
Investing Cash Flow0.000.000.000.000.000.00
Financing Cash Flow-10.39M-13.62M6.64M20.73M4.98M32.29M

Fennec Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.26
Price Trends
50DMA
10.76
Negative
100DMA
11.46
Negative
200DMA
11.06
Negative
Market Momentum
MACD
-0.07
Negative
RSI
41.89
Neutral
STOCH
46.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FRX, the sentiment is Negative. The current price of 10.26 is below the 20-day moving average (MA) of 10.53, below the 50-day MA of 10.76, and below the 200-day MA of 11.06, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 46.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
C$468.81M-15.49-790.82%2.22%
52
Neutral
C$172.61M-27.57-66.34%59.00%
52
Neutral
C$601.22M-9.34-59.46%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
$350.28M-30.88-19.08%-451.99%
46
Neutral
$226.32M-6.88-89.10%27.53%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FRX
Fennec Pharmaceuticals
10.26
0.81
8.57%
TSE:MSCL
Satellos Bioscience
1.26
0.48
61.54%
TSE:HBP
Helix BioPharma
2.28
1.36
147.83%
TSE:NGEN
NervGen Pharma
5.60
2.74
95.80%
TSE:EPRX
Eupraxia Pharmaceuticals
11.35
6.99
160.32%
TSE:METX
ME Therapeutics Holdings, Inc.
2.20
-5.80
-72.50%

Fennec Pharmaceuticals Corporate Events

Other
Southpoint Trims Stake in Fennec Pharmaceuticals to 8%
Neutral
Dec 26, 2025

Southpoint Capital Advisors LP has reduced its stake in Fennec Pharmaceuticals Inc., selling 1 million common shares at USD$7.50 each, a block representing about 2.93% of Fennec’s fully diluted outstanding shares. Following the transaction, Southpoint now controls roughly 2.7 million common shares, or about 8% of Fennec’s fully diluted share base, and indicated that its holdings may continue to change over time based on market conditions and other factors, signaling potential ongoing institutional trading activity in the stock.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Fennec Pharmaceuticals Supports New Trial for Hearing Loss Prevention in Cancer Treatment
Positive
Dec 9, 2025

Fennec Pharmaceuticals announced an investigator-sponsored trial by City of Hope to evaluate PEDMARK® for preventing hearing loss in adult men with metastatic testicular germ cell tumors undergoing cisplatin-based chemotherapy. This study highlights the increasing clinical interest in mitigating the long-term quality-of-life impacts of chemotherapy-induced hearing loss, potentially expanding the use of PEDMARK® into metastatic disease contexts.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Fennec Pharmaceuticals Reports Positive Results for PEDMARK® in Japan
Positive
Dec 2, 2025

Fennec Pharmaceuticals announced positive results from a Phase 2/3 clinical trial in Japan, demonstrating that PEDMARK® significantly reduces cisplatin-induced hearing loss in pediatric and adolescent patients without affecting the drug’s antitumor efficacy. With a high tumor response rate and no adverse interactions observed, the company plans to pursue registration in Japan and explore partnering opportunities, potentially enhancing its market presence and offering a solution to a significant unmet medical need.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Fennec Pharmaceuticals Completes Full Debt Redemption, Strengthening Financial Position
Positive
Nov 19, 2025

Fennec Pharmaceuticals has successfully completed the full redemption of its outstanding convertible notes issued to Petrichor Opportunities Fund, using proceeds from a recent public offering and private placement. This move leaves the company with no outstanding debt, potentially strengthening its financial position and operational flexibility. The redemption involved a total payment of over $21 million, covering principal, accrued interest, and a redemption fee. This strategic financial maneuver could enhance Fennec’s market positioning and stakeholder confidence.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Fennec Pharmaceuticals Closes $5M Private Offering in Canada
Positive
Nov 18, 2025

Fennec Pharmaceuticals announced the successful closing of a non-brokered private offering of common shares in Canada, raising approximately US$5,025,000. This move is part of their strategy to strengthen their financial position and support the commercialization of their flagship product, PEDMARK®. The offering was conducted under specific Canadian securities exemptions, allowing the shares to be free from a hold period, thus enhancing liquidity. This development is expected to bolster Fennec’s market presence and operational capabilities, potentially benefiting stakeholders by increasing the company’s resources for further growth and expansion.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

Private Placements and Financing
Fennec Pharmaceuticals Prices Public Offering to Raise $35 Million
Neutral
Nov 14, 2025

Fennec Pharmaceuticals announced the pricing of its public offering of 4,666,667 common shares at $7.50 per share, expecting to raise approximately $35 million. The proceeds will be used to repurchase and redeem certain indebtedness and for general corporate purposes, potentially impacting the company’s financial stability and market positioning.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Fennec Pharmaceuticals Announces Private Offering to Bolster Financial Position
Positive
Nov 14, 2025

Fennec Pharmaceuticals announced a non-brokered private offering of its common shares in Canada, aiming to raise up to US$5,025,000. The offering, targeted at existing institutional shareholders, is expected to close on November 17, 2025, pending necessary approvals. This strategic move could enhance Fennec’s financial position and support its market operations, particularly in the commercialization of its flagship product, PEDMARK®, across various regions.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Fennec Pharmaceuticals Achieves Record Sales and Profitability in Q3 2025
Positive
Nov 13, 2025

Fennec Pharmaceuticals reported a record-breaking third quarter in 2025, with net product sales reaching $12.5 million, marking a 79% year-over-year growth. The company achieved its first profitable quarter from operations, reflecting the success of its strategic initiatives to strengthen its commercial organization and expand PEDMARK® adoption. Preliminary results from a clinical trial in Japan are expected in the fourth quarter, which could lead to further market expansion and partnerships.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Fennec Pharmaceuticals Announces Public Offering to Bolster Financial Strategy
Neutral
Nov 13, 2025

Fennec Pharmaceuticals announced a proposed public offering of its common shares, with plans to use the proceeds to repurchase and redeem certain debts and for general corporate purposes. This move is expected to impact the company’s financial strategy and market positioning, as it seeks to strengthen its capital structure and support its ongoing operations.

The most recent analyst rating on (TSE:FRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Fennec Pharmaceuticals stock, see the TSE:FRX Stock Forecast page.

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.Date of analysis: Dec 30, 2025