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Fennec Pharmaceuticals (TSE:FRX)
:FRX
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Fennec Pharmaceuticals
(NASDAQ:FRX)
51Neutral
Positive Factors
Market Expansion
Fennec Pharmaceuticals has recently beefed up its commercial leadership team and appears poised to reap benefits from market expansion to the adolescent and young adult (AYA) community with payor reimbursement, as well as product adoption within prominent academic centers.
Reimbursement Success
Fennec surpassed 90% reimbursement in the AYA population for PEDMARK in 3Q24, indicating a strong position in this significant market segment.
Negative Factors
Financial Performance
Fennec Pharmaceuticals' 3Q24 financial results missed revenue and bottom-line forecasts, indicating challenges in meeting financial expectations.
Fennec Pharmaceuticals (FRX) vs. S&P 500 (SPY)
Market Cap
C$253.98M
Dividend YieldN/A
Average Volume (3M)993.00
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth281.24%
EPS Growth94.17%
CountryCA
Employees29
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.09
Shares Outstanding27,427,704
10 Day Avg. Volume1,047
30 Day Avg. Volume993
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.27
Price to Cash Flow (P/CF)-19.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.21Price Target Upside118.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Fennec Pharmaceuticals Business Overview & Revenue Model
Company DescriptionFennec Pharmaceuticals Inc. (FRX) is a biopharmaceutical company focused on the development and commercialization of innovative treatments for cancer patients. The company is primarily known for its efforts in developing PEDMARK™, a formulation aimed at preventing ototoxicity, or hearing loss, in pediatric patients undergoing chemotherapy with cisplatin, a widely used chemotherapy drug. Fennec Pharmaceuticals operates within the pharmaceutical sector, with an emphasis on oncology and pediatric care.
How the Company Makes MoneyFennec Pharmaceuticals generates revenue primarily from the commercialization and sales of its core product, PEDMARK™. The company makes money by marketing and distributing PEDMARK™ to healthcare providers and institutions that treat pediatric cancer patients. Revenue streams include direct sales to hospitals and clinics, as well as partnerships with distributors and other pharmaceutical companies that help in expanding the reach of their product. Fennec Pharmaceuticals may also engage in licensing agreements or collaborations with larger pharmaceutical firms to enhance the development and distribution of its products. Additionally, the company may receive funding through grants or milestone payments from strategic partnerships aimed at advancing their research and development efforts.
Fennec Pharmaceuticals Financial Statement Overview
Summary
Fennec Pharmaceuticals shows strong revenue growth but struggles with profitability, evidenced by a negative net income margin. The gross margin is high, but negative equity and substantial debt highlight financial risks, despite improved cash flow management.Income Statement
Fennec Pharmaceuticals has shown significant revenue growth in the TTM (Trailing-Twelve-Months) to $49.35 million from $21.25 million in the previous year, indicating a strong growth trajectory. However, the company is still struggling with profitability, as evidenced by a negative net income margin of -2.30% in the TTM. The gross profit margin is robust at 93.51%, but the net losses highlight ongoing challenges in managing operational costs.45
Neutral
Balance Sheet
The balance sheet shows a concerning situation with negative stockholders' equity of -$5.17 million in the TTM, indicating more liabilities than assets. The debt-to-equity ratio is not calculable due to negative equity, but the substantial total debt of $32.10 million poses a risk. The equity ratio cannot be evaluated due to negative equity. These factors highlight financial instability.30
Negative
Cash Flow
The cash flow statement reveals a positive shift with a strong operating cash flow of $23.59 million in the TTM, indicating better cash management. However, the free cash flow remains constrained by the company's net losses. The operating cash flow to net income ratio is not calculable due to negative net income, but the improvement in cash flow is a positive sign.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 49.35M | 21.25M | 1.53M | 0.00 | 170.00K | 0.00 | Gross Profit |
| 46.15M | 19.99M | 1.45M | 0.00 | 170.00K | 0.00 | EBIT |
| 1.68M | -12.77M | -22.59M | -17.22M | -17.89M | -13.01M | EBITDA |
| 3.60M | -12.36M | -22.59M | -17.18M | -17.98M | -13.01M | Net Income Common Stockholders |
| -1.13M | -16.05M | -23.86M | -17.46M | -17.92M | -12.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.65M | 13.27M | 23.77M | 21.10M | 30.34M | 13.65M | Total Assets |
| 14.15M | 26.86M | 26.94M | 22.41M | 31.42M | 14.15M | Total Debt |
| 0.00 | 30.95M | 24.90M | 4.99M | 0.00 | 0.00 | Net Debt |
| -13.65M | 17.68M | 1.13M | -16.11M | -30.34M | -13.65M | Total Liabilities |
| 2.27M | 38.49M | 29.51M | 6.64M | 2.35M | 2.27M | Stockholders Equity |
| 11.88M | -11.62M | -2.57M | 15.77M | 29.07M | 11.88M |
| Cash Flow | Free Cash Flow | ||||
| 23.59M | -17.14M | -18.06M | -14.22M | -15.60M | -9.06M | Operating Cash Flow |
| 23.59M | -17.14M | -18.06M | -14.22M | -15.60M | -9.06M | Investing Cash Flow |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Financing Cash Flow |
| 4.33M | 6.64M | 20.73M | 4.98M | 32.29M | -71.00K |
Fennec Pharmaceuticals Technical Analysis
Negative
9.26
Price Trends
9.11
Negative
8.18
Positive
8.14
Positive
Market Momentum
0.11
Positive
43.06
Neutral
27.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FRX, the sentiment is Negative. The current price of 9.26 is below the 20-day moving average (MA) of 9.51, above the 50-day MA of 9.11, and above the 200-day MA of 8.14, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 27.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FRX.
Fennec Pharmaceuticals Risk Analysis
Fennec Pharmaceuticals disclosed 69 risk factors in its most recent earnings report. Fennec Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fennec Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Performance Comparison
TSE:FRX
Fennec Pharmaceuticals
9.26
-3.92
-29.74%
TSE:MDNA
Medicenna Therapeutics Corp
1.06
-0.45
-29.80%
Fennec Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -5.70% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call emphasized the successful expansion of PEDMARK into new market segments, significant sales growth, and strategic leadership changes. However, challenges remain with increased expenses and the need for greater market awareness, particularly in the AYA segment.Highlights
Record Quarterly Sales
For the first 9 months of 2024, the company recorded approximately $22 million in net product sales, exceeding the total net product sales for 2023. The third quarter alone saw $7.0 million in net product sales, compared to $6.5 million in Q3 2023.
Successful Market Expansion and Academic Endorsements
Significant progress in expanding the market for PEDMARK, including emerging proof of concept in the Adolescent and Young Adult (AYA) market segment, with over 90% reimbursement achieved.
Strategic Leadership Appointments
Strengthened executive team with appointments of Pierre Sayad as Chief Medical Officer, Terry Evans as Chief Commercial Officer, and Christiana Cioffi as Chief Strategy Officer.
Partnership with Orsini Specialty Pharmacy
Partnering with Orsini to administer PEDMARK to AYA patients at home, streamlining access and creating a sustainable revenue stream.
International Expansion
Launch plans for PEDMARK in Germany and the UK, expected to provide additional revenue streams in 2025. Successful enrollment of the investigator-initiated trial in Japan, with results expected in 2025.
Lowlights
Increased General and Administrative Expenses
G&A expenses rose to $6.1 million in Q3 2024, up from $3.8 million in Q3 2023, due to noncash stock compensation, cash severance for the previous CEO, and ongoing IP litigation expenses.
Challenge of Awareness and Adoption in AYA Market
Despite progress, there remains an awareness gap in the AYA market that needs to be addressed to fully capitalize on the potential of PEDMARK.
Company Guidance
During the third quarter of 2024 earnings call for Fennec Pharmaceuticals, Chief Executive Officer Jeff Hackman outlined several key metrics and strategic initiatives aimed at driving future growth for the company. The company recorded net product sales of $7.0 million for the quarter, up from $6.5 million in the same quarter of 2023, contributing to a total of approximately $22 million in net product sales for the first nine months of 2024, surpassing the total for all of 2023. The company achieved greater than 90% reimbursement for PEDMARK in the Adolescent and Young Adult (AYA) population, a significant development considering the potential market of at least 10,000 patients treated annually with cisplatin. Fennec also reported a cash position of approximately $40.3 million, with expectations that current cash reserves will fund operations into at least 2026. Additionally, the company has strengthened its executive leadership team with key appointments, aiming to enhance operational efficiencies and ensure cross-functional alignment. Hackman emphasized the strategic imperatives of increasing awareness, cementing PEDMARK as the standard of care, expanding its adoption across healthcare providers, ensuring seamless access, and activating patient and caregiver engagement.Fennec Pharmaceuticals Corporate Events
Fennec Pharmaceuticals Reports Strong Q3 Results
Nov 13, 2024
Fennec Pharmaceuticals reported solid third-quarter financial results with $7.0 million in net product sales, bolstered by strategic investments in the Adolescent and Young Adult market. The company has also enhanced its leadership team and is well-funded with $40 million to support operations into 2026.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.