Fennec Pharmaceuticals (FENC) Q4 2024 earnings summary

Executive summary

• Achieved foundational transformation in 2024, with key management hires and expanded leadership to drive growth, setting up for further expansion with the PEDMARK strategy.

• Full-year 2024 PEDMARK net product sales reached $29.6M, up 40% year-over-year; Q4 2024 sales were $7.9M, a 13% sequential increase from Q3.

• PEDMARK gained traction at major academic centers, recommended by the NCCN with a 2A endorsement, and saw strong momentum in the AYA oncology segment.

• Commercial launches in Germany and the U.K. through Norgine, with additional ex-U.S. expansion and a fully enrolled Japan clinical trial (results expected H2 2025).

• Early partial repayment of $13M convertible debt optimized capital structure, saving $1.5M in annual interest and reducing dilution risk.

Financial highlights

• Total revenue for FY 2024 was $47.5M, up from $21.3M in 2023, driven by product and licensing revenue.

• Q4 2024 net product sales were $7.9M (13% quarterly growth); full-year product sales were $29.6M, up from $21.3M in 2023.

• Q4 2024 EBITDA loss was $0.6M; net loss for Q4 was $1.6M, improved from $2.7M loss in Q4 2023.

• Full-year 2024 net loss was $0.07M, a significant improvement from $16M net loss in 2023.

• Cash and equivalents at year-end 2024 were $26.6M, up from $13.3M at end of 2023.

Outlook and guidance

• Management expects most significant sales growth in the second half of 2025 as foundational initiatives take effect and expanded access in Europe and Japan trial results materialize.

• Full-year 2025 cash operating expenses expected to be similar to 2024, with increased marketing offset by elimination of European pre-commercialization costs.

• Expects further compendia listings and NCCN guideline expansion for PEDMARK in 2025.

• Anticipates milestone payments from Norgine upon final pricing approval in Germany and sales milestones.

• Focus remains on driving adoption in academic and AYA segments and expanding reimbursement pathways.