Fennec Pharmaceuticals, Inc. Q2 FY2024 earnings call

Key Points

• Jeff Hackman joined as the new CEO, bringing over 30 years of commercial leadership experience, including commercializing oncology products relevant to PEDMARK markets.
• PEDMARK achieved net revenues of $7.3 million in Q2 2024, a 120% increase from the same quarter in 2023.
• Milestones achieved include FDA adding a safety communication to PEDMARK's approval, J-Code resolution with CMS, NCCN modifying AYA guidelines to expand patient population for PEDMARK, and submitting data packages to compendia.
• Sales force expanded activities targeting the AYA population, successful reimbursement with major health plans, and partnership with Orsini Specialty Pharmacy to help patients access PEDMARK.
• Partnership with Norgine to commercialize PEDMARQSI in Europe, Australia, and New Zealand is on track for late Q4 2024 launch, with Fennec receiving upfront consideration and potential milestone payments.

In the second quarter of 2024, PEDMARK delivered net revenues of $7.3 million, which represents a 120% increase compared to the same quarter in 2023. PEDMARK's revenue contribution to the company's overall financials for the quarter was significant based on this figure.

Forward-Looking Statements

• Fennec anticipates cash and cash equivalents as of June 30, 2024, combined with PEDMARK revenue assumptions from the Norgine licensing agreement, will fund planned operations for at least the next 12 months.
• The next milestone related to the Norgine agreement is obtaining pricing approval in Germany, which would entitle Fennec to a €10 million milestone.
• Royalties on net sales of PEDMARQSI in licensed territories are anticipated to commence in the mid-teens upon Q4 2024 launch.

Q: Jeff, what got you excited to join Fennec and what opportunities do you see to create shareholder value?

A: Jeff Hackman mentioned he was excited by the talent and leadership experience at Fennec, and he plans to identify gaps and look for quick wins to move the company forward, leveraging his experience in pediatric and AYA markets.

Q: Can you provide more on AYA progress, including July and August developments, and Q3 outlook?

A: Robert Andrade stated that institutions are becoming more aware of PEDMARK, driven by the commercial team, and there's reimbursement progress. They anticipate continuing to build on this in Q3.

Q: Comment on the next milestone from Norgine regarding pricing approval in Germany and how it would be recognized?

A: Robert Andrade said achieving pricing approval in Germany would entitle Fennec to a €10 million milestone, to be recognized in late Q4/early Q1 if achieved, and royalties on net sales would start in the mid-teens upon Q4 launch.