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Fennec Pharmaceuticals (TSE:FRX)
:FRX
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Fennec Pharmaceuticals
(NASDAQ:FRX)
Rating:58Neutral
Price Target:―
Positive Factors
International Expansion
European commercial rollout advancing with the acceptance of PEDMARQSI for use in Scotland and launches in Germany, England, and Wales.
Market Opportunity
PEDMARK represents a potential >$300M market opportunity in the US at the current pricing.
Product Adoption
Pedmark continues to gain traction in its adolescent-young adult (AYA) target population with accelerating growth driven by adoption in large community and academic centers.
Negative Factors
Profitability Concerns
The outlook appears to be improving gradually, with a forecasted net loss for 2025 being less than previously projected, and the potential to achieve sustainable profitability in late 2025.
Revenue Forecast
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. iShares MSCI Canada ETF (EWC)
Market Cap
C$332.31M
Dividend YieldN/A
Average Volume (3M)603.00
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-29.70%
EPS Growth-546.01%
CountryCA
Employees32
SectorHealthcare
Sector Strength47
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.15
Shares Outstanding27,831,697
10 Day Avg. Volume1,066
30 Day Avg. Volume603
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
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$19.37Price Target Upside62.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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: -4.56%|
Next Earnings Date:Nov 06, 2025
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
Fennec Pharmaceuticals demonstrates strong revenue growth and improved cash flow, crucial for biotechnology operations. However, significant challenges remain with profitability and a weak balance sheet, marked by negative equity and high leverage. Addressing these issues is essential for sustainable growth and financial health.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 47.54M | 21.25M | 1.53M | 0.00 | 170.00K |
| Gross Profit | 44.35M | 19.99M | 1.45M | 0.00 | 170.00K |
| EBITDA | 4.80M | -12.65M | -22.74M | -17.18M | -17.98M |
| Net Income | -436.00K | -16.05M | -23.86M | -17.46M | -18.11M |
Balance Sheet | |||||
| Total Assets | 44.95M | 26.86M | 26.94M | 22.41M | 31.42M |
| Cash, Cash Equivalents and Short-Term Investments | 26.63M | 13.27M | 23.77M | 21.10M | 30.34M |
| Total Debt | 19.34M | 30.95M | 24.90M | 4.99M | 0.00 |
| Total Liabilities | 50.82M | 38.49M | 29.51M | 6.64M | 2.35M |
| Stockholders Equity | -5.87M | -11.62M | -2.57M | 15.77M | 29.07M |
Cash Flow | |||||
| Free Cash Flow | 26.98M | -17.14M | -18.06M | -14.22M | -15.60M |
| Operating Cash Flow | 26.98M | -17.14M | -18.06M | -14.22M | -15.60M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -13.62M | 6.64M | 20.73M | 4.98M | 32.29M |
Fennec Pharmaceuticals Technical Analysis
Positive
11.94
Price Trends
11.56
Positive
10.30
Positive
9.47
Positive
Market Momentum
>-0.01
Positive
53.84
Neutral
26.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FRX, the sentiment is Positive. The current price of 11.94 is above the 20-day moving average (MA) of 11.58, above the 50-day MA of 11.56, and above the 200-day MA of 9.47, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 26.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FRX.
Fennec Pharmaceuticals Risk Analysis
Fennec Pharmaceuticals disclosed 66 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 |
|---|---|---|---|---|---|---|---|
58 Neutral | C$332.31M | ― | 21.91% | ― | -29.70% | -546.01% | |
51 Neutral | $7.88B | -0.12 | -39.83% | 2.18% | 21.38% | -1.56% | |
| ― | $75.19M | ― | -76.26% | ― | ― | ― | |
26 Underperform | C$109.08M | ― | 90.17% | ― | ― | -37.72% | |
| ― | $187.55M | ― | -248.14% | ― | ― | ― | |
48 Neutral | C$414.79M | ― | -30.79% | ― | ― | -43.64% | |
45 Neutral | C$267.52M | ― | -158.24% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
TSE:FRX
Fennec Pharmaceuticals
11.94
4.27
55.67%
MSCLF
Satellos Bioscience
0.43
0.03
7.50%
TSE:ARCH
Arch Biopartners
1.65
0.19
13.01%
NGENF
NervGen Pharma
2.54
0.53
26.37%
TSE:DRUG
Bright Minds Biosciences
58.56
56.54
2799.01%
TSE:EPRX
Eupraxia Pharmaceuticals
7.32
3.81
108.55%
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
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.