"Fennec Pharmaceuticals: A Deep Dive into Q4 2024 Earnings and the Future of PEDMARK®"

Fennec Pharmaceuticals Inc. (NASDAQ: FENC; TSX: FRX) has just reported its financial results for the fiscal year ended December 31, 2024, and the numbers are nothing short of impressive. The company achieved a 40% year-over-year increase in PEDMARK® net product sales, reaching $29.6 million for the full year. This growth is a testament to the company's strategic investments and market penetration efforts, particularly in the Adolescent and Young Adult (AYA) segment and academic settings. But what does this mean for the future of Fennec Pharmaceuticals and its flagship product, PEDMARK®?



The Q4 2024 earnings call, held on March 10, 2025, provided a wealth of information that investors and industry watchers alike should pay close attention to. Let's break down the key takeaways and what they mean for the company's future.

A 40% Year-Over-Year Increase in PEDMARK® Net Product Sales

Fennec Pharmaceuticals reported a 40% year-over-year increase in PEDMARK® net product sales, from $21.3 million in 2023 to $29.6 million in 2024. This growth is particularly notable in the AYA segment and academic settings, where the company has made significant strategic investments to drive awareness of ototoxicity and the adoption of PEDMARK®. The company's efforts to have PEDMARK® added to the NCCN Drug and Biologics Compendium®, a key step in further expanding access and reimbursement pathways, further validates the company's strategic focus on market penetration and adoption.

Early Repayment of Convertible Debt Facility

One of the most significant financial moves made by Fennec Pharmaceuticals in Q4 2024 was the early repayment of $13 million of its convertible debt facility. This strategic action optimizes the company's balance sheet and overall capital structure, effectively saving approximately $1.5 million in future annual interest payments. By reducing its debt burden, Fennec Pharmaceuticals can allocate more resources towards research and development, marketing, and other growth initiatives. This move also eliminates potential dilutive shares, maintaining a stable share structure and potentially attracting more investors who value stability and growth potential.

Commercial Launch of PEDMARQSI® in the United Kingdom and Germany

The commercial launch of PEDMARQSI® in the United Kingdom and Germany is a significant milestone for Fennec Pharmaceuticals. PEDMARQSI® is the first and only approved therapy in the EU and U.K. for the prevention of ototoxicity, or hearing loss, induced by cisplatin chemotherapy in patients aged 1 month to 17 years. This unique position in the market can help Fennec Pharmaceuticals capture a significant share of the pediatric oncology market in these regions. The positive recommendation from the National Institute for Health and Care Excellence (NICE) in the UK further supports the commercial viability of PEDMARQSI®, driving adoption and reimbursement and contributing to increased revenue streams for Fennec Pharmaceuticals.

Challenges and Opportunities Ahead

While the commercial launch of PEDMARQSI® in the United Kingdom and Germany presents a significant opportunity for Fennec Pharmaceuticals, the company will need to navigate different regulatory environments and reimbursement systems. Additionally, the company will need to build awareness and drive adoption among healthcare providers and patients in these regions, which may require significant investment in marketing and educational initiatives. The potential for competition from other treatments or therapies that may enter the market in the future is also a challenge that the company will need to stay vigilant about.

Financial Performance and Future Outlook

Fennec Pharmaceuticals reported a cash position of $26.6 million as of December 31, 2024, with a $13.4 million increase in cash and cash equivalents between December 31, 2023, and December 31, 2024. The company's financial performance in 2024 was impressive, with revenue increasing by 123.69% compared to the previous year. Losses were -$70,000, -99.56% less than in 2023. The company's strong financial performance and strategic investments position it well for future growth and success.



Conclusion

Fennec Pharmaceuticals' Q4 2024 earnings call provided a wealth of information that investors and industry watchers should pay close attention to. The company's 40% year-over-year increase in PEDMARK® net product sales, early repayment of convertible debt facility, and commercial launch of PEDMARQSI® in the United Kingdom and Germany are all positive indicators of the company's future growth and success. However, the company will need to navigate different regulatory environments and reimbursement systems, build awareness and drive adoption among healthcare providers and patients, and stay competitive in the face of potential future competition. With a strong financial position and strategic investments, Fennec Pharmaceuticals is well-positioned to capitalize on these opportunities and continue to grow and succeed in the biopharmaceutical industry.