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1. Company Snapshot

1.a. 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 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.

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1.b. Last Insights on FENC

Fennec Pharmaceuticals' recent performance was driven by a strong Q1 2025 earnings release, which topped revenue estimates. The company reported a quarterly loss of $0.04 per share, narrower than the Zacks Consensus Estimate of a loss of $0.12. Additionally, Fennec Pharmaceuticals announced the election of its nominees as directors at the Annual General and Special Meeting of Shareholders, indicating a positive development in the company's governance. The company's PEDMARK net product sales also showed a 40% year-over-year increase in full-year 2024, reaching $29.6 million.

1.c. Company Highlights

2. Fennec Pharmaceuticals' Q2 2025 Earnings: A Deeper Dive

Fennec Pharmaceuticals reported a revenue of $9.7 million for Q2 2025, representing a 33% year-over-year and 10% sequential growth, driven by the addition of 14 new accounts and expanded PEDMARK adoption. The company's EPS came in at -$0.11, worse than the estimated -$0.06. With a current P/S Ratio of 7.0, the market is pricing in significant growth expectations.

Publication Date: Sep -23

📋 Highlights
  • Revenue Growth:: Q2 2025 reported $9.7M net revenue (33% YoY, 10% sequential), driven by 14 new accounts and PEDMARK adoption.
  • Strategic Momentum:: PEDMARK secured formulary inclusion in a major oncology group, supported by NCODA peer-reviewed PQI and multidisciplinary engagement with ENTs and pharmacists.
  • Financial Position:: Operating expenses reached $11M, with $18.7M in cash reserves as of Q2, and projected H2 cost reductions to drive cash profitability.
  • EU Expansion:: Norgine partnership targets EU5 and Nordic markets by late 2025–2026, with Germany pricing approvals as a critical milestone.

Financial Performance

The company's operating expenses stood at $11 million, with a cash balance of $18.7 million as of Q2 2025. The financials indicate a significant investment in marketing and IP, which is expected to decrease in the second half of the year, potentially leading to cash profitability. The Norgine partnership is expected to contribute to future growth, with royalties and milestones expected to drive revenue.

Strategic Updates

Jeffrey S. Hackman highlighted the progress made in Q2 2025, including the addition of PEDMARK to a large oncology group's formulary, advisory board insights, and expanded patient access via the Fennec HEARS program. The company's focus on provider education, patient advocacy, and partnerships like Norgine's EU launch is expected to drive long-term adoption.

Valuation Metrics

With a P/E Ratio of -19.51 and an EV/EBITDA of -26.26, the company's valuation metrics indicate a high level of expectation for future growth. The ROE of 200.45% and ROIC of -27.37% suggest a complex financial situation. The Net Debt / EBITDA ratio of -0.07 indicates a relatively healthy debt position.

Future Expectations

The company is expected to continue its growth trajectory, driven by the Norgine partnership, expanded patient access, and increased adoption of PEDMARK. The EU launch and Japan trial results are expected to be key milestones in the coming quarters. With a focus on disciplined execution and patient impact, Fennec Pharmaceuticals is poised for significant growth.

3. NewsRoom

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Pedmark Delivers In Japan Study — Less Hearing Loss, Same Cancer-Fighting Power

Dec -02

Source: feeds.benzinga.com

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Fennec Pharmaceuticals Announces Positive Topline Results From Investigator-Initiated Clinical Study of PEDMARK® in Japan to Reduce Cisplatin-Induced Hearing Loss

Dec -02

Source: globenewswire.com

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Brokerages Set Adherex Technologies Inc. (NASDAQ:FENC) Price Target at $13.33

Nov -30

Source: defenseworld.net

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Fennec Pharmaceuticals to Participate in Piper Sandler 37th Annual Healthcare Conference

Nov -26

Source: globenewswire.com

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Fennec Pharmaceuticals Announces Completion Of Full Debt Redemption

Nov -19

Source: globenewswire.com

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Fennec Pharmaceuticals Announces Closing of Offering of Common Shares

Nov -17

Source: globenewswire.com

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Fennec Pharmaceuticals Announces Pricing of Offering of Common Shares

Nov -14

Source: globenewswire.com

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Adherex Technologies Inc. (FENC) Reports Q3 Loss, Tops Revenue Estimates

Nov -13

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Sodium Thiosulfate

Expected Growth: 8.5%

Fennec Pharmaceuticals Inc.'s Sodium Thiosulfate growth is driven by increasing adoption in chemotherapy-induced hearing loss treatment, expanding pediatric patient pool, and growing demand for ototoxicity prevention. Additionally, strategic partnerships, regulatory approvals, and investments in R&D are expected to fuel growth, resulting in an 8.5% growth rate.

7. Detailed Products

FX-322

FX-322 is a proprietary, patented formulation of otic gel that is designed to treat hearing loss and tinnitus.

FX-345

FX-345 is a novel, patented formulation of oral tablets that is designed to treat tinnitus.

FX-427

FX-427 is a novel, patented formulation of otic gel that is designed to treat Meniere's disease.

8. Fennec Pharmaceuticals Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Fennec Pharmaceuticals Inc. operates in a highly competitive industry, and there are several substitutes available for its products. However, the company's strong brand recognition and customer loyalty mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Fennec Pharmaceuticals Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Fennec Pharmaceuticals Inc. relies on a few key suppliers for raw materials and services. While the company has some bargaining power due to its size and reputation, suppliers still have some leverage in negotiations.

Threat Of New Entrants

The pharmaceutical industry is highly regulated, and new entrants face significant barriers to entry. However, the threat of new entrants is still high due to the potential for new technologies and business models to disrupt the industry.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players competing for market share. Fennec Pharmaceuticals Inc. faces intense competition from rivals, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 164.17%
Debt Cost 6.23%
Equity Weight -64.17%
Equity Cost 6.23%
WACC 6.23%
Leverage -255.83%

11. Quality Control: Fennec Pharmaceuticals Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Fennec Pharmaceuticals

A-Score: 6.0/10

Value: 8.2

Growth: 8.6

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Synlogic

A-Score: 4.8/10

Value: 7.2

Growth: 5.6

Quality: 4.8

Yield: 0.0

Momentum: 8.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Mersana Therapeutics

A-Score: 3.4/10

Value: 9.2

Growth: 4.8

Quality: 5.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Genelux

A-Score: 3.2/10

Value: 6.0

Growth: 4.2

Quality: 3.6

Yield: 0.0

Momentum: 4.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
SAB Biotherapeutics

A-Score: 3.1/10

Value: 8.8

Growth: 1.2

Quality: 6.9

Yield: 0.0

Momentum: 1.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Enanta Pharmaceuticals

A-Score: 2.8/10

Value: 7.2

Growth: 1.2

Quality: 3.9

Yield: 0.0

Momentum: 4.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.62$

Current Price

7.62$

Potential

-0.00%

Expected Cash-Flows