Fennec Turns to Profit as PEDMARK Sales Reach $19.4 Million

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

Net product sales rose 56% from a year earlier as the company posted $4.6 million of net income after a net loss a year earlier.

Fennec Pharmaceuticals Inc. (FENC), a commercial-stage specialty pharmaceutical company, reported net income of $4.64 million for the three months ended September 30, 2026, after a net loss of $638 thousand in the year-earlier quarter.

PEDMARK product sales, net, were $19.43 million in the third quarter, up 56% from $12.46 million a year earlier. The company said the increase reflected higher market penetration and access for PEDMARK and an expanded focus on the adolescent and young adult population. Sequential product sales also rose from $17.16 million in the three months ended June 30, 2026.

Other revenue related to the Norgine licensing transaction was $183 thousand, versus none in the comparable 2025 period, lifting total revenue to $19.61 million from $12.46 million.

The company swung to income from operations of $4.65 million from an operating loss of $189 thousand a year earlier. A $332 thousand income-tax provision was recorded, versus none in the year-earlier quarter.

Selling and marketing expense was $10.05 million, or 67% of revenue, compared with $6.51 million, or 51%, a year earlier. Fennec said the increase was largely related to higher commercial headcount to expand U.S. sales coverage and additional 2026 marketing and awareness initiatives. General and administrative expense fell to $3.91 million, or 26% of revenue, from $5.45 million, or 43%, primarily because of lower legal and professional fees after the March 2026 Cipla patent-litigation settlement and a reallocation of certain employee-related costs from general and administrative to selling and marketing beginning in the first quarter of 2026.

Cost of product sales was $838 thousand, or 4% of net product sales, versus $660 thousand, or 5%, a year earlier. The company cited higher sales volume and greater manufacturing and inventory-management efficiencies. Research and development expense was $154 thousand, versus $29 thousand, consisting of costs associated with investigator-initiated trials, including studies initiated in 2026.

Interest expense declined to $1 thousand from $586 thousand a year earlier, primarily because the Petrichor convertible notes were fully repaid in the fourth quarter of 2025. Interest income increased to $319 thousand from $152 thousand, driven by higher average cash balances on money-market investments.

For the nine months ended September 30, 2026, PEDMARK product sales, net, were $51.70 million versus $30.87 million in the comparable 2025 period, a 67% increase. Total revenue was $52.59 million, including $893 thousand of other revenue related to Norgine. Income from operations was $6.27 million versus an operating loss of $3.73 million, and net income was $6.81 million versus a net loss of $4.95 million. Selling and marketing expense for the nine months was $32.13 million, or 69% of revenue, versus $14.52 million, or 42%. General and administrative expense was $11.74 million, or 25%, versus $17.84 million, or 51%. Interest expense was $11 thousand versus $1.77 million; interest income was $945 thousand versus $559 thousand.

In September 2026 the company announced that the Japan STS-J01 investigator-initiated trial met its primary endpoint, with American Speech-Language-Hearing Association-defined hearing loss in 24.0% of patients versus a prespecified historical benchmark of 56.4% (p=0.001), 84.0% Grade 0 hearing loss under Brock criteria, and objective tumor responses in 23 of 24 evaluable patients. Fennec said it is pursuing a regulatory registration strategy for PEDMARK in Japan and evaluating partnering or licensing opportunities in that market.