• Net Product Sales: $7.0 million for Q3 2024, compared to $6.5 million in Q3 2023.

• Year-to-Date Net Product Sales: Approximately $22 million for the first nine months of 2024.

• General and Administrative Expenses: $6.1 million for Q3 2024, compared to $3.8 million in Q3 2023.

• Selling and Marketing Expenses: $4.6 million for Q3 2024, compared to $3.4 million in Q3 2023.

• Cash Position: Approximately $40.3 million in cash, cash equivalents, and investment securities as of the end of Q3 2024.

• Warning! GuruFocus has detected 3 Warning Signs with FENC.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fennec Pharmaceuticals Inc (NASDAQ:FENC) reported net product sales of $7.0 million for the third quarter of 2024, an increase from $6.5 million in the same quarter of 2023.

• The company has achieved over 90% reimbursement for Pedmark in the adolescent and young adult (AYA) population, indicating strong market acceptance.

• Fennec Pharmaceuticals Inc (NASDAQ:FENC) has strengthened its leadership team with the appointment of experienced executives, which is expected to enhance operational efficiency and strategic execution.

• The company is expanding its market presence with plans to launch Pedmark in Germany and the UK, providing additional revenue streams in 2025.

• Fennec Pharmaceuticals Inc (NASDAQ:FENC) has a strong cash position with approximately $40.3 million in cash, cash equivalents, and investment securities, sufficient to fund operations into at least 2026.

Negative Points

• General and administrative expenses increased significantly to $6.1 million in Q3 2024 from $3.8 million in Q3 2023, partly due to non-cash stock compensation and severance payments.

• The company is facing ongoing intellectual property litigation, which could pose financial and operational risks.

• There is an awareness gap among physicians regarding the availability of Pedmark as a preventative treatment, particularly in the AYA market.

• Fennec Pharmaceuticals Inc (NASDAQ:FENC) is still working to convert institutions that rely on compounded versions of sodium thiosulfate to adopt Pedmark.

• The market modeling for Fennec Pharmaceuticals Inc (NASDAQ:FENC) remains challenging for analysts, indicating uncertainty in near-term revenue projections.

Q & A Highlights

Q: Jeff, do you feel like you have everything in place to accelerate and drive growth in the AYA market? What updates can you provide on the compendium, and should we expect meaningful growth from that market sequentially? A: Yes, we believe the commercial opportunity for Pedmark in the AYA market is significant. With new talent in marketing and medical roles, we expect incremental progress. The third quarter's achievements signal a strong growth potential, and we anticipate significant opportunities in the coming quarters. (Jeffrey Hackman, CEO)