Fennec Pharmaceuticals (TSE:FRX)
NASDAQ:FRX
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Fennec Pharmaceuticals
(NASDAQ:FRX)
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Rating:58Neutral
Price Target:
C$14.00
▲(48.94% Upside)
Action:Reiterated
Date:05/18/26
The score is driven primarily by mixed fundamentals: strong revenue growth and very high gross margins with a strengthened, debt-free balance sheet, but ongoing losses and renewed negative TTM cash flow. Technicals are supportive (uptrend) but overbought readings add pullback risk, while valuation is a headwind given the very high P/E. The latest earnings call was constructive with strong sales growth and improving KPIs, partially offset by elevated, front-loaded 2026 spending and near-term cash variability.
Positive Factors
Sustained revenue acceleration
Repeated quarterly sales gains and a 73% YoY jump in Q1 demonstrate durable commercial traction for PEDMARK. Consistent growth across multiple quarters implies expanding prescriber adoption and repeat utilization, which supports predictable revenue scaling as the company broadens reach and converts target prescribers.
Negative Factors
Negative operating and free cash flow
Renewed negative operating and free cash flow drains reserves and raises the probability of future financing if profitability does not improve. Persistent cash burn undermines long-term self‑funding assumptions and increases dependency on timing of revenues, partner milestones, or capital markets to sustain commercial expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue acceleration
Repeated quarterly sales gains and a 73% YoY jump in Q1 demonstrate durable commercial traction for PEDMARK. Consistent growth across multiple quarters implies expanding prescriber adoption and repeat utilization, which supports predictable revenue scaling as the company broadens reach and converts target prescribers.
Read all positive factors
Fennec Pharmaceuticals (FRX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$441.46M
Dividend YieldN/A
Average Volume (3M)1.65K
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth63.54%
EPS Growth41.84%
CountryCA
Employees32
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.30
Shares Outstanding34,737,030
10 Day Avg. Volume1,746
30 Day Avg. Volume1,653
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)6.29
Price to Sales (P/S)4.86
P/FCF Ratio-15.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$21.36Price Target Upside127.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.36
Revenue Forecast (FY)C$94.15M
Fennec Pharmaceuticals Business Overview & Revenue Model
Company Description
Fennec 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 ...
How the Company Makes Money
Fennec makes money primarily by selling PEDMARK in the United States. Revenue is generated from product sales to the healthcare channel (e.g., specialty distributors/wholesalers and/or specialty pharmacy networks depending on the commercial arrang...
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
44
Neutral
Balance Sheet
71
Positive
Cash Flow
36
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.17M | 45.42M | 47.54M | 21.25M | 1.53M | 0.00 |
| Gross Profit | 47.19M | 41.59M | 44.35M | 19.99M | 1.45M | 0.00 |
| EBITDA | -5.72M | -6.86M | 4.80M | -12.65M | -22.74M | -17.18M |
| Net Income | -8.81M | -10.27M | -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 Technical Analysis
Positive
9.40
Price Trends
10.31
Positive
10.52
Positive
11.08
Positive
Market Momentum
0.96
Positive
61.74
Neutral
37.83
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 9.4 is below the 20-day moving average (MA) of 12.52, below the 50-day MA of 10.31, and below the 200-day MA of 11.08, indicating a bullish trend. The MACD of 0.96 indicates Positive momentum. The RSI at 61.74 is Neutral, neither overbought nor oversold. The STOCH value of 37.83 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 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 |
|---|---|---|---|---|---|---|---|
58 Neutral | C$441.46M | -37.55 | -55.13% | ― | 63.54% | 41.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | C$173.11M | -1.76 | -51.42% | ― | ― | 6.61% | |
46 Neutral | C$120.68M | -28.58 | -66.34% | ― | ― | 69.04% | |
46 Neutral | C$550.52M | -8.73 | -51.05% | ― | ― | -34.19% |
* Healthcare Sector Average
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Fennec Pharmaceuticals Corporate Events
Business Operations and StrategyProduct-Related Announcements
Fennec Backs New PEDMARK Study Expanding Cisplatin Ototoxicity Research to Adult Cancers
Positive
Apr 7, 2026
Fennec Pharmaceuticals has announced that the University of Arizona Cancer Center will conduct an investigator-sponsored Phase I/II trial of PEDMARK in adolescent, young adult and adult patients with head and neck and testicular cancers receiving ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Fennec Posts Record PEDMARK Sales in 2025 as Clinical and Commercial Momentum Builds
Positive
Mar 27, 2026
Fennec Pharmaceuticals reported record 2025 net PEDMARK sales of $44.6 million, up 50% year over year, with fourth-quarter sales rising 75%, driven by higher patient enrollments, improved conversion rates, and accelerating adoption at key accounts...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Fennec Pharmaceuticals Posts Record PEDMARK Sales and Broadens Clinical Footprint in 2025
Positive
Mar 24, 2026
Fennec Pharmaceuticals reported record 2025 results, with PEDMARK net product sales rising 50% year over year to $44.6 million and fourth-quarter sales up 75% to $13.8 million, underscoring accelerating adoption across key accounts and patient seg...
Business Operations and StrategyFinancial Disclosures
Fennec to Report 2025 Results as Global Rollout of PEDMARK Advances
Positive
Mar 18, 2026
Fennec Pharmaceuticals will release its full-year and fourth-quarter 2025 financial results before U.S. markets open on March 24, 2026, followed by a management-hosted conference call and webcast for investors and analysts. The scheduled disclosur...
Business Operations and StrategyLegal Proceedings
Fennec Secures PEDMARK Market Protection With Cipla Patent Litigation Settlement
Positive
Mar 16, 2026
Fennec Pharmaceuticals has reached a settlement with Cipla Limited and Cipla USA over litigation related to Cipla’s bid to market a generic version of PEDMARK. Under the agreement, the case will be dismissed with each side covering its own c...
Business Operations and StrategyProduct-Related Announcements
Fennec Showcases Real-World Data Backing PEDMARK Use in Adult Head and Neck Cancer
Positive
Feb 20, 2026
Fennec Pharmaceuticals reported new real-world data indicating that PEDMARK can be safely administered at least six hours after cisplatin in adults with head and neck cancers and integrated smoothly into routine care without disrupting curative tr...
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.