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Fennec Pharmaceuticals
(TSX:FRX)
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Rating:58Neutral
Price Target:
C$14.00
▼(-16.22% Downside)
Action:Reiterated
Date:05/18/26
The score is driven primarily by mixed fundamentals: strong revenue growth and very high gross margins with a strengthened, debt-free balance sheet, but ongoing losses and renewed negative TTM cash flow. Technicals are supportive (uptrend) but overbought readings add pullback risk, while valuation is a headwind given the very high P/E. The latest earnings call was constructive with strong sales growth and improving KPIs, partially offset by elevated, front-loaded 2026 spending and near-term cash variability.
Positive Factors
PEDMARK commercial growth
Sustained sales growth and rising infusions, enrollments and active patients indicate expanding PEDMARK adoption. Broader prescriber coverage and stronger site penetration can support durable revenue growth as commercialization matures.
Negative Factors
Negative cash generation
Despite improving from 2025, the business is not yet consistently self-funding. Continued negative and volatile cash flow could constrain investment or require external financing if PEDMARK growth, collections or operating leverage fall short.
Read all positive and negative factors
Positive Factors
Negative Factors
PEDMARK commercial growth
Sustained sales growth and rising infusions, enrollments and active patients indicate expanding PEDMARK adoption. Broader prescriber coverage and stronger site penetration can support durable revenue growth as commercialization matures.
Read all positive factors
Fennec Pharmaceuticals (FRX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$601.21M
Dividend YieldN/A
Average Volume (3M)717.00
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth75.94%
EPS Growth70.25%
CountryCA
Employees35
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.13
Shares Outstanding35,067,158
10 Day Avg. Volume1,040
30 Day Avg. Volume717
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)6.28
Price to Sales (P/S)4.93
P/FCF Ratio-17.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$25.03Price Target Upside49.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.36
Revenue Forecast (FY)C$94.15M
Fennec Pharmaceuticals Business Overview & Revenue Model
Company Description
Fennec Pharmaceuticals Inc. operates as a biopharmaceutical firm. Its leading investigational drug in clinical development is PEDMARK, a specialized formulation of sodium thiosulfate. This treatment is designed to shield young cancer patients from...
How the Company Makes Money
Fennec makes money primarily by selling PEDMARK in the United States. Revenue is generated from product sales to the healthcare channel (e.g., specialty distributors/wholesalers and/or specialty pharmacy networks depending on the commercial arrang...
Fennec Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial and clinical momentum: double-digit and sequential revenue growth (+78% YoY in Q2), return to positive adjusted EBITDA, record operational metrics in July, expanded commercial reach and multiple ISTs with notable forthcoming data (SIOP oral presentation). These positives are tempered by higher SG&A and marketing-driven OpEx, short-term cash timing volatility, reliance on a concentrated set of tumor types for the majority of sales, and the need for additional clinical data to drive guideline upgrades and label expansion. Management is bullish on continued growth but remains conservative on formal revenue guidance until further traction and data maturity are achieved.Positive Updates
Strong Revenue Growth and Sequential Momentum
Net product sales of $17.1M in Q2 2026 versus $9.7M in Q2 2025, representing approximately +78% year-over-year. Company reports seventh consecutive quarter of growth and 143% revenue increase since the CEO joined (~2-year period). Management cites record metrics into Q3 with July posting all-time highs for completed infusions, new patient enrollments, active patients on therapy and new customers.
Negative Updates
Increased Operating Expenses—SG&A and Marketing
Quarterly OpEx (R&D + SG&A, excluding stock comp) was ~$13.6M, up approximately $3.6M year-over-year driven primarily by SG&A increases tied to marketing initiatives and expanded commercial headcount to support growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth and Sequential Momentum
Net product sales of $17.1M in Q2 2026 versus $9.7M in Q2 2025, representing approximately +78% year-over-year. Company reports seventh consecutive quarter of growth and 143% revenue increase since the CEO joined (~2-year period). Management cites record metrics into Q3 with July posting all-time highs for completed infusions, new patient enrollments, active patients on therapy and new customers.
Read all positive updates
Company Guidance
Management reiterated 2026 operating guidance of roughly $50.0M in total cash OpEx, with about $20–22M (≈40%) to be recorded in H2 2026; cash and cash equivalents were $41.2M as of June 30 (a $1.0M increase in Q2), and the company expects Q3 ending cash to be lower than Q2 but positive cash generation in Q4 and a positive year‑end cash position, stating June 30 cash plus projected PEDMARK revenues should fund the business under the current plan. Key Q2 financials and profitability trends cited: net product sales of $17.1M (≈78% YoY vs. $9.7M), OpEx (R&D + SG&A excl. stock comp) ≈$13.6M (up ≈$3.6M YoY), record non‑GAAP adjusted EBITDA ≈$2.8M (vs. a $1.2M loss a year ago), and EPS $0.05 (vs. -$0.11). Operational and commercial metrics they expect to drive further growth include expanding prescriber targets from ~1,300 to ~5,000, a 280% increase in sales calls in Q2, unique HCP reach +63%, affiliated sites +72%, >50% of business from home infusion, double‑digit demand growth Q2 over Q1, record AYA enrollment in Q2, and all‑time highs in July for completed infusions, new patient enrollments, active patients on therapy and new customers — trends management expects to carry into Q3 and to drive meaningful increases in operating income and adjusted EBITDA.Fennec Pharmaceuticals Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
71
Positive
Cash Flow
36
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.22M | 44.64M | 47.54M | 21.25M | 1.53M | 0.00 |
| Gross Profit | 55.51M | 40.88M | 44.35M | 19.99M | 1.45M | 0.00 |
| EBITDA | -2.38M | -7.45M | 4.80M | -12.36M | -22.59M | -17.22M |
| Net Income | -3.25M | -9.74M | -436.00K | -16.05M | -23.71M | -17.35M |
Balance Sheet | ||||||
| Total Assets | 75.75M | 70.07M | 44.95M | 26.86M | 26.94M | 22.41M |
| Cash, Cash Equivalents and Short-Term Investments | 41.25M | 36.72M | 26.63M | 13.27M | 23.77M | 21.10M |
| Total Debt | 0.00 | 0.00 | 19.34M | 30.95M | 24.90M | 4.99M |
| Total Liabilities | 33.31M | 35.02M | 50.82M | 38.49M | 29.51M | 6.64M |
| Stockholders Equity | 42.44M | 35.05M | -5.87M | -11.62M | -2.57M | 15.77M |
Cash Flow | ||||||
| Free Cash Flow | -2.04M | -12.47M | 26.98M | -17.14M | -18.06M | -14.22M |
| Operating Cash Flow | -2.04M | -12.47M | 26.98M | -17.14M | -18.06M | -14.22M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 24.58M | 22.63M | -13.62M | 6.64M | 20.73M | 4.98M |
Fennec Pharmaceuticals Technical Analysis
Positive
16.71
Price Trends
15.49
Positive
13.50
Positive
11.97
Positive
Market Momentum
0.59
Negative
60.90
Neutral
70.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FRX, the sentiment is Positive. The current price of 16.71 is above the 20-day moving average (MA) of 16.63, above the 50-day MA of 15.49, and above the 200-day MA of 11.97, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 70.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | C$601.21M | -95.31 | -11.71% | ― | 75.94% | 70.25% | |
53 Neutral | C$264.14M | -4.59 | -71.28% | ― | ― | -6.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | C$773.70M | -8.24 | -45.29% | ― | ― | -15.34% | |
46 Neutral | C$137.48M | -40.91 | -21.54% | ― | ― | 77.30% |
* Healthcare Sector Average
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Fennec Pharmaceuticals Corporate Events
Business Operations and StrategyProduct-Related Announcements
Fennec Backs New PEDMARK Study Expanding Cisplatin Ototoxicity Research to Adult Cancers
Positive
Apr 7, 2026
Fennec Pharmaceuticals has announced that the University of Arizona Cancer Center will conduct an investigator-sponsored Phase I/II trial of PEDMARK in adolescent, young adult and adult patients with head and neck and testicular cancers receiving ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Fennec Posts Record PEDMARK Sales in 2025 as Clinical and Commercial Momentum Builds
Positive
Mar 27, 2026
Fennec Pharmaceuticals reported record 2025 net PEDMARK sales of $44.6 million, up 50% year over year, with fourth-quarter sales rising 75%, driven by higher patient enrollments, improved conversion rates, and accelerating adoption at key accounts...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Fennec Pharmaceuticals Posts Record PEDMARK Sales and Broadens Clinical Footprint in 2025
Positive
Mar 24, 2026
Fennec Pharmaceuticals reported record 2025 results, with PEDMARK net product sales rising 50% year over year to $44.6 million and fourth-quarter sales up 75% to $13.8 million, underscoring accelerating adoption across key accounts and patient seg...
Business Operations and StrategyFinancial Disclosures
Fennec to Report 2025 Results as Global Rollout of PEDMARK Advances
Positive
Mar 18, 2026
Fennec Pharmaceuticals will release its full-year and fourth-quarter 2025 financial results before U.S. markets open on March 24, 2026, followed by a management-hosted conference call and webcast for investors and analysts. The scheduled disclosur...
Business Operations and StrategyLegal Proceedings
Fennec Secures PEDMARK Market Protection With Cipla Patent Litigation Settlement
Positive
Mar 16, 2026
Fennec Pharmaceuticals has reached a settlement with Cipla Limited and Cipla USA over litigation related to Cipla’s bid to market a generic version of PEDMARK. Under the agreement, the case will be dismissed with each side covering its own c...
Business Operations and StrategyProduct-Related Announcements
Fennec Showcases Real-World Data Backing PEDMARK Use in Adult Head and Neck Cancer
Positive
Feb 20, 2026
Fennec Pharmaceuticals reported new real-world data indicating that PEDMARK can be safely administered at least six hours after cisplatin in adults with head and neck cancers and integrated smoothly into routine care without disrupting curative tr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.