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Fennec Pharmaceuticals (TSE:FRX)
TSX:FRX
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Fennec Pharmaceuticals
(TSX:FRX)
Rating:58Neutral
Price Target:―
Positive Factors
European Commercial Rollout
European commercial rollout advancing with the acceptance of PEDMARQSI for use in Scotland and launches in Germany, England, and Wales.
Intellectual Property and Orphan Drug Status
Pedmark has IP protection until 2039 and orphan drug status until 2029, providing a competitive advantage in the market.
Market Expansion
Fennec remains poised to reap benefits from market expansion to the adolescent and young adult (AYA) community with payor reimbursement, along with accelerating product adoption at key academic centers.
Negative Factors
Financial Performance
Fennec Pharmaceuticals' 3Q24 financial results missed the revenue and bottom-line forecasts.
Revenue Decline
The company recorded product revenue totaling only $7M, which actually represented a modest quarter-over-quarter decline vs. 2Q24.
Revenue Forecast Reduction
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
$312.92M
Dividend YieldN/A
Average Volume (3M)413.00
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth125.38%
EPS Growth99.20%
CountryCA
Employees32
SectorHealthcare
Sector Strength42
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.06
Shares Outstanding27,618,744
10 Day Avg. Volume260
30 Day Avg. Volume413
Financial Highlights & Ratios
PEG Ratio-1.61
Price to Book (P/B)-29.81
Price to Sales (P/S)0.00
P/FCF Ratio6.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.68Price Target Upside58.45% 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:May 13, 2025
(Q1-2025)
| % Change Since: 36.14%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong revenue growth, successful international expansion, and strategic advancements in targeting and adoption. However, challenges remain in managing cash burn and improving patient adherence.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Fennec Pharmaceuticals reported net product sales of approximately $8.8 million for Q1 2025, reflecting an 18% growth compared to the same period last year and an 11% increase over Q4 2024.
Expansion of PEDMARK
PEDMARK is now launched commercially in Germany and the UK, with recent acceptance for use in Scotland. This marks important steps for Fennec's mission to expand access in the European Union and the UK.
Strategic Targeting and Adoption
The implementation of a sophisticated targeting model led to early traction with tier 1 targets and expanded PEDMARK's adoption into key institutions like Tampa General Hospital and City of Hope.
Positive Momentum in AYA Segment
Significant adoption and interest in the adolescent and young adult (AYA) segment, with 20,000 cisplatin chemotherapy patients treated annually in key tumor types.
Reduction in Selling and Marketing Expenses
Selling and marketing expenses decreased to $2.9 million in Q1 2025, down from $5.2 million in Q1 2024, due to the elimination of European pre-commercialization activities.
Negative Updates
Cash Burn and Operating Expenses
The company burned approximately $4 million in cash in Q1 2025, maintaining high cash operating expenses.
Challenges in Patient Adherence
Patient adherence in the AYA segment is around 50%, indicating room for improvement in ensuring full treatment courses.
Increased General and Administrative Expenses
G&A expenses increased to $6.1 million in Q1 2025 from $4.1 million in Q4 2024, largely due to noncash-based stock compensation.
Company Guidance
During the first quarter of 2025, Fennec Pharmaceuticals reported net product sales of approximately $8.8 million, marking an 18% growth compared to the same period in 2024 and an 11% increase over the fourth quarter of 2024. The company focused on enhancing field execution and supporting sustainable growth in key PEDMARK segments, achieving early traction in top-tier targets such as Tampa General Hospital and City of Hope. Fennec estimates that approximately 20,000 cisplatin chemotherapy patients are treated annually in the AYA segment, a market larger than the pediatric segment. Operating expenses were detailed with selling and marketing expenses at $2.9 million and G&A expenses at $6.1 million for the quarter. Cash and cash equivalents stood at $22.6 million, with an expected full-year cash operating expense of approximately $33 million. The company also highlighted progress in international markets, with recent PEDMARK launches in Germany, the UK, and Scotland, and ongoing trials in Japan.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
Positive
11.79
Price Trends
8.89
Positive
9.09
Positive
8.22
Positive
Market Momentum
0.79
Negative
73.09
Negative
90.40
Negative
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 11.79 is above the 20-day moving average (MA) of 10.52, above the 50-day MA of 8.89, and above the 200-day MA of 8.22, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 73.09 is Negative, neither overbought nor oversold. The STOCH value of 90.40 is Negative, 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 1 New Risks
1.
We have entered into, and may in the future enter into, strategic transactions for the research, development and commercialization of PEDMARK. If any of these transactions are not successful, then we may not be able to capitalize on the market potential of such product candidates. Further, we may not be able to enter into future transactions on acceptable terms, if at all, which could adversely affect our ability to develop and commercialize our potential future product candidates and former lead product candidate, impact our cash position, increase our expense, and present significant distractions to our management. Q3, 2024
Fennec Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $312.92M | ― | 21.91% | ― | 125.38% | 99.20% | |
54 Neutral | $5.31B | 3.29 | -45.39% | 2.79% | 16.77% | -0.07% | |
| $70.80M | ― | -64.18% | ― | ― | ― | ||
26 Underperform | C$122.59M | ― | 90.17% | ― | ― | -78.59% | |
| $177.29M | ― | -248.14% | ― | ― | ― | ||
48 Neutral | C$271.08M | ― | -11.21% | ― | ― | 86.45% | |
45 Neutral | C$199.90M | ― | -108.05% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
TSE:FRX
Fennec Pharmaceuticals
11.79
2.04
20.92%
MSCLF
Satellos Bioscience
0.41
<0.01
2.50%
TSE:ARCH
Arch Biopartners
1.86
0.11
6.29%
NGENF
NervGen Pharma
2.42
0.72
42.35%
TSE:DRUG
Bright Minds Biosciences
38.27
36.78
2468.46%
TSE:EPRX
Eupraxia Pharmaceuticals
5.31
1.63
44.29%
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.