Fennec Pharmaceuticals Reports 65% Revenue Decline and $1.17 Million Net Loss in Q1 2025

Fennec Pharmaceuticals Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $8.75 million, a 65% decrease from $25.38 million in the same period last year. The decline was primarily attributed to the absence of licensing revenue, which had contributed $17.96 million in the first quarter of 2024. The company’s net loss for the quarter was $1.17 million, compared to a net income of $12.84 million in the prior year, resulting in a basic and diluted loss per share of $0.04.

Operating expenses for the first quarter of 2025 totaled $9.56 million, down from $11.63 million in the previous year. The decrease was driven by a significant reduction in selling and marketing expenses, which fell to $2.95 million from $5.21 million, reflecting the completion of pre-commercial activities in Europe following the licensing agreement with Norgine. Research and development expenses increased slightly to $0.94 million, while general and administrative expenses rose to $6.15 million, largely due to higher consulting and professional costs related to ongoing litigation.

Fennec's cash and cash equivalents decreased to $22.68 million as of March 31, 2025, from $26.63 million at the end of 2024. The company experienced negative cash flows from operating activities amounting to $4.32 million during the quarter, a stark contrast to the $39.05 million in cash provided by operations in the same period last year. The increase in accounts receivable contributed to a rise in other current assets, which totaled $20.30 million, up from $17.49 million at the end of 2024.

Strategically, Fennec has made significant progress with its product, PEDMARK®, which is designed to reduce the risk of ototoxicity associated with cisplatin in pediatric patients. The company secured an exclusive licensing agreement with Norgine Pharma UK Limited in March 2024, which provided an upfront payment of approximately $43.2 million and potential future milestone payments of up to $230 million. Norgine is set to commercialize PEDMARQSI® (the international name for PEDMARK®) in Europe, Australia, and New Zealand, with launches expected in key markets such as Germany and the U.K. in early 2025.

Looking ahead, Fennec anticipates that its current funds, bolstered by the upfront payment from Norgine, will be sufficient to support its planned activities, including the ongoing commercialization efforts for PEDMARK® for at least the next twelve months. The company remains focused on expanding its market presence and increasing awareness of the product among healthcare providers and patients, aiming to establish PEDMARK® as the standard of care for preventing cisplatin-induced ototoxicity.