Fennec Pharmaceuticals (FENC) Q2 2024 earnings summary

Executive summary

• PEDMARK net product sales reached $7.3 million in Q2 2024, more than doubling from $3.3 million in Q2 2023, with licensing revenue of $18.0 million recognized in H1 2024 from the Norgine deal.

• Appointment of Jeff Hackman as CEO effective August 16, 2024, brings extensive oncology commercialization experience and signals a new phase of strategic leadership.

• PEDMARK achieved key milestones, including expanded NCCN guidelines and a J-code update, broadening patient access and expanding the addressable population.

• Exclusive licensing agreement with Norgine for PEDMARQSI in Europe, Australia, and New Zealand provides $43.2 million upfront, up to $230 million in milestones, and tiered royalties.

• PEDMARK is the first FDA-approved therapy for cisplatin-induced ototoxicity in pediatric patients, with European launch of PEDMARQSI planned for Q4 2024.

Financial highlights

• PEDMARK net sales reached $7.3 million in Q2 2024, up 120% year-over-year.

• H1 2024 total revenue was $32.6 million, including $18.0 million in licensing revenue from Norgine.

• Net loss for Q2 2024 was $5.6 million; H1 2024 net income was $7.3 million.

• Cash and cash equivalents stood at $43 million as of June 30, 2024, mainly due to the Norgine upfront payment.

• Operating expenses for Q2 2024 were $12.3 million, up from $8.0 million in Q2 2023, driven by higher selling, marketing, and G&A costs.

Outlook and guidance

• Cash position, PEDMARK revenue, and Norgine agreement expected to fund operations for at least the next 12 months.

• PEDMARQSI launch in Europe targeted for Q4 2024 in partnership with Norgine.

• Expects EU-related expenses to wind down after Q2 2024.

• Strategic focus on expanding PEDMARK access in AYA and community oncology segments.

• Up to $230 million in future milestone and royalty payments possible from Norgine agreement.