FENC — Fennec Pharmaceuticals Inc.

Fennec Pharmaceuticals Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 2025 Net Product Sales: $13.8 million, up 75% from $7.9 million in Q4 2024.
• Full Year 2025 Net Product Sales: $44.6 million, a 50% increase from $29.6 million in 2024.
• Selling and Marketing Expenses: $6.1 million in Q4 2025, up from $3.9 million in Q4 2024; full-year expenses were $18.6 million, slightly up from $18.4 million in 2024.
• General and Administrative Expenses: $8.9 million in Q4 2025, compared to $4.2 million in Q4 2024; full-year expenses increased to $28.8 million from $23.1 million in 2024.
• Cash Position: $36.8 million as of December 31, 2025, bolstered by $42 million from equity offerings and a full debt redemption.
• Positive Cash Flow: Expected in Q1 2026 due to early receivable collections.

2. Strategic Updates and Business Highlights

• Record Growth: Strong sales growth attributed to increased patient enrollment and effective market strategies.
• Expansion of Sales Team: Increased customer-facing team to enhance outreach, particularly in the adolescent and young adult (AYA) market.
• Fennec HEARS Program: Achieved record performance with significant increases in patient enrollments and conversion rates.
• Clinical Evidence Strategy: Progress on investigator-initiated studies, including partnerships with City of Hope and Tampa General Hospital to evaluate PEDMARK's efficacy in adult populations.
• Regulatory Milestones: Settlement with Cipla regarding patent litigation, ensuring market exclusivity until September 2033.

3. Forward Guidance and Outlook

• 2026 Cash Operating Expenses: Expected to rise from approximately $35 million in 2025 to about $50 million in 2026 due to commercial expansion.
• Revenue Growth: Anticipated continued growth in AYA patient enrollment and overall sales, with a focus on achieving significant contributions from new hires in the second half of 2026.
• Potential for Revenue Guidance: Plans to evaluate the issuance of revenue and EBITDA guidance as growth initiatives progress.

4. Bad News, Challenges, or Points of Concern

• Increased Expenses: Rising selling, marketing, and G&A expenses could pressure profitability.
• Dependence on Market Adoption: Continued physician skepticism regarding PEDMARK's impact on cisplatin efficacy remains a challenge, though recent data is shifting perceptions.
• Execution Risks: The effectiveness of the expanded sales team and marketing initiatives in driving growth is yet to be fully realized.

5. Notable Q&A Insights

• Physician Concerns: Addressed skepticism about PEDMARK interfering with cisplatin's antitumor activity, emphasizing long-term studies showing no adverse effects on survival rates.
• Regulatory Strategy: Ongoing discussions with the FDA regarding label expansions for AYA populations and potential guideline enhancements.
• Market Penetration: Strong uptake in both academic and community oncology practices, with a balanced focus on existing and new accounts.
• International Expansion: Anticipated revenue contributions from the Norgine partnership in the second half of 2026, with ongoing efforts to establish a distributor in Japan.

Overall, Fennec Pharmaceuticals reported a strong performance in 2025, with significant sales growth and strategic advancements, while also navigating challenges related to market adoption and expense management. The company is optimistic about its future trajectory as it continues to expand its reach and clinical evidence base.