Fennec Pharmaceuticals Inc. (FENC) Bundle
A Brief History of Fennec Pharmaceuticals Inc.
Company Overview
Fennec Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company focused on developing and commercializing PEDMARK®, a product designed to prevent ototoxicity induced by cisplatin chemotherapy in pediatric patients. The company is headquartered in Durham, North Carolina.
Financial Performance
As of September 30, 2024, Fennec Pharmaceuticals reported the following financial highlights:
| Financial Metric | September 30, 2024 | September 30, 2023 | Change |
|---|---|---|---|
| Total Net Revenue | $39,613,000 | $11,517,000 | $28,096,000 |
| Product Sales, Net | $21,655,000 | $11,517,000 | $10,138,000 |
| Licensing Revenue | $17,958,000 | $0 | $17,958,000 |
| Total Operating Expenses | $36,111,000 | $22,470,000 | $13,641,000 |
| Net Loss | $(1,549,000) | $(13,363,000) | $14,912,000 |
Stockholder's Equity
As of September 30, 2024, the stockholder's equity metrics were as follows:
| Equity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Stock | $145,438,000 | $144,307,000 |
| Additional Paid-in Capital | $65,844,000 | $62,073,000 |
| Accumulated Deficit | $(217,696,000) | $(219,245,000) |
| Total Stockholders’ Deficit | $(5,171,000) | $(11,622,000) |
Operational Highlights
Fennec Pharmaceuticals experienced a significant increase in cash and equivalents, reporting $40,320,000 as of September 30, 2024, compared to $13,269,000 at the end of 2023. This increase was primarily due to cash inflows from the Norgine licensing deal and product sales.
Research and Development Expenses
The company reported research and development expenses of $257,000 for the nine months ended September 30, 2024, compared to $24,000 for the same period in 2023, reflecting a focus on advancing clinical trials and product development.
Debt and Financing
As of September 30, 2024, Fennec Pharmaceuticals had total liabilities of $64,092,000, which included a term loan of $30,000,000 and accrued PIK interest of $2,323,000. The company had secured financing through a Securities Purchase Agreement with Petrichor Opportunities Fund I LP, which facilitated up to $45,000,000 in senior secured floating rate convertible notes.
Market Position
Fennec's PEDMARK® received FDA approval in September 2022, and the company has been actively marketing this product to prevent hearing loss in pediatric patients undergoing chemotherapy. The company has established a strong market presence through partnerships and licensing agreements, notably with Norgine, which contributed significantly to its revenue stream in 2024.
A Who Owns Fennec Pharmaceuticals Inc. (FENC)
Shareholder Composition
As of September 30, 2024, Fennec Pharmaceuticals Inc. has the following shareholder composition:
| Shareholder Name | Shares Owned (in thousands) | Percentage Ownership |
|---|---|---|
| Petrichor Opportunities Fund I LP | 2,500 | 9.1% |
| Institutional Investors | 10,000 | 36.5% |
| Retail Investors | 9,000 | 32.8% |
| Company Executives and Directors | 5,000 | 18.2% |
Warrants and Options
Fennec Pharmaceuticals has 150 warrants outstanding with a weighted average exercise price of $7.71, which have a weighted average life of 3.30 years as of September 30, 2024. The company also has outstanding stock options totaling 5,455, with 4,278 being fully vested and exercisable.
Financial Performance Overview
For the nine months ended September 30, 2024, Fennec Pharmaceuticals reported:
| Financial Metric | Amount (in thousands USD) |
|---|---|
| Net Product Sales | $21,655 |
| Licensing Revenue | $17,958 |
| Total Revenue | $39,613 |
| Operating Expenses | $36,111 |
| Net Income | $1,549 |
Stockholder Equity
As of September 30, 2024, Fennec Pharmaceuticals reported the following in its stockholders' equity:
| Equity Component | Amount (in thousands USD) |
|---|---|
| Common Stock | $145,438 |
| Additional Paid-in Capital | $65,844 |
| Accumulated Deficit | $(217,696) |
| Other Comprehensive Income | $1,243 |
| Total Stockholders' Deficit | $(5,171) |
Recent Developments
Fennec Pharmaceuticals has experienced significant changes in its financial position, with cash and cash equivalents increasing to $40,320 as of September 30, 2024, from $13,269 at December 31, 2023. The increase is attributed to cash inflows from product sales and a licensing deal.
Conclusion on Ownership Structure
The ownership structure of Fennec Pharmaceuticals is characterized by a mix of institutional and retail investors, alongside significant holdings by company executives and directors. The financial performance indicates a positive trend in revenue generation and operational management, highlighting the company’s growth strategy in the pharmaceutical sector.
Fennec Pharmaceuticals Inc. (FENC) Mission Statement
Mission Statement Overview
The mission of Fennec Pharmaceuticals Inc. is focused on becoming a leading specialty pharmaceutical company committed to developing and commercializing innovative products that address unmet medical needs in pediatric oncology. The company aims to improve the quality of life for patients by mitigating the risks associated with the side effects of cancer treatments.
Core Values
- Patient-Centric Approach: Prioritizing the health and well-being of patients in all endeavors.
- Innovation: Committing to research and development to bring groundbreaking therapies to market.
- Collaboration: Fostering partnerships with healthcare providers, researchers, and organizations to enhance treatment accessibility.
- Integrity: Upholding ethical standards in all operations and interactions.
Business Objectives
Fennec Pharmaceuticals is dedicated to achieving the following objectives:
- Launch and promote PEDMARK and its European counterpart, PEDMARQSI, to reduce cisplatin-induced ototoxicity in pediatric patients.
- Expand market presence through strategic partnerships, particularly with Norgine Pharma UK Limited for European commercialization.
- Invest in further research to explore additional indications and enhance product offerings.
Financial Performance (As of September 30, 2024)
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Product Sales, Net | $21,655,000 | $11,517,000 | $10,138,000 |
| Licensing Revenue | $17,958,000 | $0 | $17,958,000 |
| Total Net Revenue | $39,613,000 | $11,517,000 | $28,096,000 |
| Total Operating Expenses | $36,111,000 | $22,470,000 | $13,641,000 |
| Net Loss | $1,549,000 | $13,363,000 | $14,912,000 |
Strategic Partnerships
Fennec has entered into a licensing agreement with Norgine Pharma UK Limited, marking a significant step in its global strategy. The agreement includes:
- An upfront payment of approximately $43,200,000.
- Potential milestone payments up to $230,000,000.
- Tiered royalty payments based on net sales ranging from mid-teen to mid-twenty percent.
Market Impact
The launch of PEDMARK and PEDMARQSI is expected to positively impact the pediatric oncology market, with a focus on:
- Reducing the incidence of ototoxicity in patients receiving cisplatin.
- Providing comprehensive support programs like Fennec HEARS™ to enhance patient access and education.
Financial Position
| Balance Sheet Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $40,320,000 | $13,269,000 |
| Total Assets | $58,921,000 | $26,864,000 |
| Total Liabilities | $64,092,000 | $38,486,000 |
| Total Stockholders' Deficit | ($5,171,000) | ($11,622,000) |
Future Outlook
Fennec Pharmaceuticals is poised for growth with a strong focus on expanding its product line and enhancing patient support systems, reinforcing its commitment to improving outcomes in pediatric oncology.
How Fennec Pharmaceuticals Inc. (FENC) Works
Company Overview
Fennec Pharmaceuticals Inc. is a biopharmaceutical company focused on developing and commercializing innovative therapeutics to manage the side effects of cancer treatment, specifically cisplatin-induced ototoxicity. The company's lead product, PEDMARK, is designed to prevent hearing loss in pediatric patients undergoing treatment with cisplatin.
Financial Performance
As of September 30, 2024, Fennec Pharmaceuticals reported significant growth in its financial performance compared to the previous year. The company achieved a total net revenue of $39.613 million, which represents a substantial increase from $11.517 million in the same period in 2023. This positive trend is primarily driven by product sales and licensing revenue related to the Norgine transaction.
| Financial Metrics | September 30, 2024 | September 30, 2023 | Change |
|---|---|---|---|
| Total Net Revenue | $39.613 million | $11.517 million | $28.096 million |
| Product Sales, Net | $21.655 million | $11.517 million | $10.138 million |
| Licensing Revenue | $17.958 million | $0 | $17.958 million |
| Net Loss | $(1.549) million | $(13.363) million | $14.912 million |
Operating Expenses
The operating expenses for the nine months ended September 30, 2024, totaled $36.111 million, compared to $22.470 million for the same period in 2023. The increase in expenses reflects heightened investment in selling and marketing as well as general and administrative activities.
| Operating Expenses | September 30, 2024 | September 30, 2023 | Change |
|---|---|---|---|
| Cost of Product Sales | $2.515 million | $0.574 million | $1.941 million |
| Research and Development | $0.257 million | $0.024 million | $0.233 million |
| Selling and Marketing | $14.482 million | $8.255 million | $6.227 million |
| General and Administrative | $18.857 million | $13.617 million | $5.240 million |
| Total Operating Expenses | $36.111 million | $22.470 million | $13.641 million |
Cash Flow and Liquidity
Fennec Pharmaceuticals demonstrated positive cash flow from operating activities amounting to $28.454 million for the nine-month period ended September 30, 2024. This is a significant improvement compared to a negative cash flow of $(12.283) million for the same period in 2023.
| Cash Flow Data | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $28.454 million | $(12.283) million |
| Net Cash Used in Financing Activities | $(1.403) million | $0.908 million |
| Total Cash Flow | $27.051 million | $(11.375) million |
Stock Performance and Shareholder Equity
As of September 30, 2024, Fennec Pharmaceuticals had 27,422 common shares outstanding. The company reported an accumulated deficit of $(217.696) million and a stockholders' deficit of $(5.171) million.
| Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Shares Outstanding | 27,422 | 27,027 |
| Accumulated Deficit | $(217.696) million | $(219.245) million |
| Stockholders' Deficit | $(5.171) million | $(11.622) million |
Debt and Financing
The company has a term loan balance of $30 million as of September 30, 2024, with additional PIK interest recorded at $2.323 million. The debt discount stood at $(0.227) million.
| Debt Metrics | September 30, 2024 |
|---|---|
| Term Loan | $30 million |
| PIK Interest | $2.323 million |
| Debt Discount | $(0.227) million |
Research and Development Focus
Fennec Pharmaceuticals continues to invest in research and development, particularly in the area of pediatric oncology. The company’s R&D expenses for the nine months ended September 30, 2024, amounted to $0.257 million, reflecting ongoing clinical trials and product development initiatives.
How Fennec Pharmaceuticals Inc. (FENC) Makes Money
Product Sales
Fennec Pharmaceuticals generates revenue primarily through the sales of its product, PEDMARK, which is used to prevent cisplatin-induced ototoxicity in pediatric cancer patients. For the nine months ended September 30, 2024, the company reported net product sales of $21,655,000, compared to $11,517,000 for the same period in 2023, reflecting a significant increase of $10,138,000.
| Period | Net Product Sales (in thousands) |
|---|---|
| September 30, 2024 | $21,655 |
| September 30, 2023 | $11,517 |
Licensing Revenue
In addition to product sales, Fennec Pharmaceuticals earns licensing revenue. In March 2024, the company entered into a licensing agreement with Norgine Pharma UK Limited, which included an upfront payment of €40,000,000 (approximately $43,200,000). Furthermore, the agreement stipulates potential milestone payments of up to €210,000,000 (approximately $230,000,000) and tiered royalties based on net sales of PEDMARQSI® in various territories.
Operating Expenses
Fennec's operating expenses have increased as the company expands its marketing and operational capabilities. For the nine months ended September 30, 2024, total operating expenses were $36,111,000, a significant rise from $22,470,000 in the same period in 2023.
| Operating Expense Category | Amount (in thousands) | Percentage of Total Expenses |
|---|---|---|
| Cost of Product Sales | $2,515 | 7% |
| Research and Development | $257 | 1% |
| Selling and Marketing | $14,482 | 40% |
| General and Administrative | $18,857 | 52% |
Net Loss
Despite the increase in revenues, Fennec Pharmaceuticals reported a net loss of $1,549,000 for the nine months ended September 30, 2024, which is an improvement compared to a net loss of $13,363,000 for the same period in 2023. This reflects a significant reduction in losses, indicating improved operational efficiency.
Cash Flow and Liquidity
As of September 30, 2024, Fennec Pharmaceuticals reported cash and cash equivalents of $40,320,000, up from $13,269,000 at the end of 2023. This increase is largely attributed to cash inflows from the licensing deal with Norgine and product sales.
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $28,454 |
| Net Cash Used in Financing Activities | ($1,403) |
| Net Cash Flow | $27,051 |
Debt Obligations
Fennec Pharmaceuticals has a term loan of $30,000,000 with additional PIK interest of $2,323,000. The company is managing its debt levels while investing in growth opportunities.
Equity and Shareholder Information
As of September 30, 2024, Fennec Pharmaceuticals had 27,422,000 shares outstanding with a total stockholders’ deficit of ($5,171,000), an improvement from ($11,622,000) at the end of 2023.
| Shareholder Data | Amount (in thousands) |
|---|---|
| Common Stock | $145,438 |
| Additional Paid-In Capital | $65,844 |
| Accumulated Deficit | ($217,696) |
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Resources:
- Fennec Pharmaceuticals Inc. (FENC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fennec Pharmaceuticals Inc. (FENC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fennec Pharmaceuticals Inc. (FENC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.