Earnings

Fennec Turns Operating Profit as PEDMARK Sales Reach $17.2 Million

The Tip Desk · August 13, 2026 · 3 min read

Net product sales of $17.16 million in the three months ended June 30, 2026 lifted the company to $1.97 million of net income after a year-earlier loss of $3.15 million.

Fennec Pharmaceuticals Inc. (FENC), a commercial-stage specialty pharmaceutical company, recorded net product sales of $17.16 million in the three months ended June 30, 2026, up from $9.65 million a year earlier, and swung to net income of $1.97 million from a net loss of $3.15 million.

The sales increase reflected higher market penetration and access for PEDMARK and an expanded focus on the adolescent and young adult population. Sequential net product sales had been $15.11 million in the three months ended March 31, 2026. Other revenue of $710 thousand related to the Norgine transaction, versus zero in the comparable 2025 period, lifted total revenue to $17.87 million.

Income from operations was $1.74 million, compared with an operating loss of $2.73 million a year earlier. Cost of product sales fell to $721 thousand from $967 thousand, reflecting greater efficiencies in manufacturing and inventory management. Research and development expense was $118 thousand.

Selling and marketing expense rose to $10.66 million from $4.78 million a year earlier, largely related to higher commercial headcount to expand U.S. sales coverage and additional marketing and awareness initiatives. General and administrative expense fell to $4.64 million from $6.53 million, primarily due to lower legal and professional fees as Cipla patent litigation concluded and the reallocation of certain employee-related and equity-based compensation costs to selling and marketing beginning in the first quarter of 2026. Interest expense declined to $3 thousand from $594 thousand after full repayment of the Petrichor convertible notes in the fourth quarter of 2025. Interest income was $287 thousand.

On March 16, 2026, Fennec announced a settlement and license agreement with Cipla Limited and Cipla USA, Inc. that dismissed pending U.S. patent litigation and barred Cipla from entering the U.S. market with generic sodium thiosulfate until September 1, 2033, or earlier under certain specified circumstances. The settlement, together with existing patent and regulatory protections, provides additional visibility into the long-term exclusivity profile of PEDMARK in the United States. Orphan drug exclusivity runs until September 20, 2029.

PEDMARK remains the only FDA-approved therapy indicated to reduce the risk of ototoxicity associated with cisplatin in pediatric patients one month of age and older with localized, non-metastatic solid tumors. The National Comprehensive Cancer Network recommends PEDMARK for adolescent and young adult oncology in that setting. Fennec estimates approximately 2,157 cisplatin-treated pediatric patients in the U.S. and 1,250 in Europe fall within the current market, and about 25,536 cisplatin-treated AYA patients with localized, non-metastatic solid tumors in the U.S.

In Europe, Norgine made PEDMARQSI commercially available in the U.K. and Germany during 2025 and expects additional launches in 2026 and beyond. Under the 2024 license, Fennec received about $43 million in upfront consideration and may receive up to about $230 million in milestones and double-digit tiered royalties; to date, it has not received any milestone payments. In December 2025, the company announced positive topline results from the Japan STS-J01 investigator-initiated trial, with an approximate 95% clinical response rate, and is pursuing a regulatory registration strategy and evaluating partnering or licensing in Japan.

In 2026, the company initiated additional investigator-sponsored studies, including a real-world study at Tampa General Hospital Cancer Institute and a Phase I/II trial at the University of Arizona Cancer Center to evaluate PEDMARK in AYA and adult patients receiving cisplatin-based chemotherapy. Four PEDMARK abstracts were accepted for the 2026 ASCO Annual Meeting held May 29–June 2, 2026. PEDMARK is not currently approved for use in metastatic cancers or adult populations outside of its labeled indication.

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