Fennec Pharmaceuticals Inc. Q1 FY2025 earnings call

• Developed and implemented a data-driven targeting model for cisplatin prescribers, structuring tiers from 1 to 5 to focus engagement on key institutions.
• Noted progress in the AYA segment, with an average of about 30 vials per patient and 50% adherence rates, driving focus on enhancing the Fennec HEARS patient support program.
• Strengthened medical team efforts, including engagement with key opinion leaders and increased awareness of cisplatin-induced ototoxicity.
• Achieved commercial launches of PEDMARQSI in Germany and the UK, with the Scottish Medicine Consortium accepting it for use in Scotland.
• The Investigator-Initiated Trial in Japan (SDS-J01) evaluating PEDMARK was fully enrolled in October 2024, with results expected in the second half of 2025.

In the first quarter of 2025, Fennec Pharmaceuticals recorded net product sales of approximately $8.8 million, which is an 18% growth compared to the first quarter of 2024 ($7.4 million) and an 11% increase over the fourth quarter of 2024. Selling and marketing expenses in Q1 2025 were $2.9 million, down from $5.2 million in Q1 2024. G&A expenses in Q1 2025 were $6.1 million, consistent year-over-year but up quarter-over-quarter due to noncash stock compensation. Cash and cash equivalents were $22.6 million as of March 31, 2025, and the company burned approximately $4 million in cash in Q1 2025.

• Net product sales have shown two consecutive quarters of growth, with anticipation of significant quarterly growth in the second half of 2025 as foundational initiatives impact growth.
• Cash operating expenses are expected to be similar to 2024, approximately $33 million, with a step up in marketing expenses and increased headcount offset by elimination of European pre-commercialization expenses.
• Key milestones for 2025 include official pricing in Germany and first-year sales targets.

No detailed discussion of specific risks in the transcript, but mentions that forward-looking statements are subject to risks and uncertainties that may cause actual results to differ from forward-looking statements.

Q: Could you provide metrics on the AYA side, like average vials per patient and adherence rates?

A: On average, about 30 vials per patient in AYA, with around 50% of patients getting full adherence. Focus is on revamping Fennec HEARS to increase adherence.

Q: Do prescribers know their tier in the targeting algorithm, and are there incentives for moving up tiers?

A: Typically, providers aren't shared tier information, but high cisplatin prescribers are targeted as they see the impact of ototoxicity. No differences in pricing/reimbursement based on tiers.

Q: On ex-US front, any remaining territories with strong potential?

A: Focus on big five European markets, with Spain, Italy, France as next potential opportunities. Cadence of new country introductions in Europe to continue, with second quarter being first full quarter of launches in Germany and UK.

Q: Thoughts on strategic opportunities in oncology supportive care?

A: Organization is now structured and executing well, so will continue to look at synergistic opportunities in supportive care and other spaces, evaluating potential assets or partnerships.