Fennec Pharmaceuticals (FENC) Q1 2025 earnings summary

Executive summary

• Q1 2025 net product sales reached $8.8 million, up 18% year-over-year, driven by expanded PEDMARK adoption, especially in the AYA segment, and commercial launches in Germany, the UK, and SMC approval in Scotland.

• Enhanced commercial priorities and a sophisticated targeting model focused on high-volume cisplatin prescribers and the AYA segment, with increased adoption in academic and community institutions.

• The Fennec HEARS patient support program was revamped to improve provider and patient experience, supporting adherence and home administration.

• The STS-J01 trial in Japan completed enrollment, with results expected in H2 2025, supporting potential registration and partnering opportunities.

• The company operates in a single segment focused on PEDMARK production and commercialization.

Financial highlights

• Net product sales for Q1 2025 were $8.8 million, up from $7.4 million in Q1 2024; licensing revenue in Q1 2024 was $18.0 million from the Norgine deal, not repeated in 2025.

• Net loss for Q1 2025 was $1.2 million, compared to net income of $12.8 million in Q1 2024, reflecting the absence of licensing revenue.

• Selling and marketing expenses were $2.9 million, down from $5.2 million in Q1 2024, mainly due to the completion of European pre-commercialization activities.

• G&A expenses rose to $6.1 million in Q1 2025 from $5.9 million in Q1 2024, primarily due to higher non-cash stock-based compensation.

• Cash and cash equivalents stood at $22.6 million as of March 31, 2025, down from $26.6 million at year-end 2024, with a $4 million cash burn in Q1.

Outlook and guidance

• Most significant quarterly sales growth is anticipated in the second half of 2025 as foundational initiatives mature.

• Cash operating expenses are expected to be front-loaded in the first half of the year, with a step-down in the second half.

• Cash flow break-even targeted at $8.5–9 million in quarterly sales; company was close to this in Q4 2024.

• Management expects continued PEDMARK adoption growth, supported by targeted sales strategies and enhanced patient support.

• Current funds, including the Norgine upfront payment, are expected to support planned activities and commercialization for at least the next twelve months.