Fennec Pharmaceuticals Inc. (FENC) Earnings

Management highlights

- Organizational Updates & Leadership: Jeff Hackman, CEO, reports that over two years of team building, the company expanded its target prescriber base from 1,300 to ~5,000 and grew total revenue by 143% during this tenure. New Chief Strategy Officer Christy Cioffi joined the leadership team, bringing extensive biopharmaceutical commercialization experience. - Commercial Strategy & Awareness: Fennec built on its 2025 "Survival Should Be Loud" branded campaign with the 2026 "Indy's Nuts" testicular cancer awareness initiative launched at the Indianapolis 500. The multi-channel campaign, featuring athlete partnerships and distribution of over 100,000 branded peanut bags, aimed to promote early testicular cancer diagnosis and educate patients on CIO prevention. The campaign's racing theme was extended to the ASCO 2026 annual meeting booth, which generated exceptional engagement, hundreds of new HCP leads, and positive industry recognition. The company recently secured a major formulary addition for Pedmark with a large national community oncology network, expanding patient access. - Medical Affairs & Clinical Progress: The fully deployed MSL team grew total unique HCP reach by 63% and unique site reach by 72% in Q2 2026, and expanded medical congress footprint nearly 3x year-over-year. Three investigator-sponsored studies (ISTs) of Pedmark are currently active and accruing patients across testicular, head and neck, and gynecologic cancers, with additional IST discussions ongoing across more tumor types and patient populations. The Phase 2-3 STS-J01 trial of Pedmark in Japan has been selected for an oral presentation at the September 2026 SIOP Annual Meeting, which will feature the first public human pharmacokinetic data for the program. HCP discussions have shifted from general CIO awareness to practical implementation of Pedmark into standard treatment workflows, indicating growing clinical confidence. - Financial Performance: Q2 2026 non-GAAP adjusted EBITDA was a positive $2.8 million, compared to a $1.2 million loss in Q2 2025. GAAP EPS was $0.05 per share, versus a $0.11 per share loss in the prior year quarter. Total operating expenses (R&D plus SG&A, excluding stock-based compensation) were $13.6 million, a $3.6 million year-over-year increase driven by expanded marketing investments and increased commercial headcount. Cash and cash equivalents totaled $41.2 million as of June 30, 2026, a $1 million increase from the prior quarter. Management confirms existing cash and projected Pedmark revenue are sufficient to fund current operating plans.

Guidance

- Full-year 2026 total cash operating expenses are projected to remain ~$50 million, with $20-$22 million (40% of total) expected to be recorded in the second half of 2026, maintaining prior guidance. - Management expects Q3 2026 ending cash to be lower than Q2 2026 due to normal collection cycle swings, but projects full-year 2026 end-of-year cash to be positive. - Management confirmed that the company does not provide formal revenue guidance for 2026; guidance for 2027 is under active internal consideration, with a decision pending as the company prioritizes avoiding missed guidance. - The company projects that non-GAAP adjusted EBITDA and operating income will grow meaningfully in coming quarters as revenue increases, given the business's predominantly fixed cost base that creates significant operating leverage. - Management expects continued sequential growth acceleration through the second half of 2026, supported by record demand carried over from Q2 and July 2026 achieving all-time highs for completed Pedmark infusions, new patient enrollments, active patients on therapy, and new customers.

Segment performance

Fennec Pharmaceuticals has only one marketed product, Pedmark (sodium thiosulfate), for the prevention of cisplatin-induced hearing loss (CIO). In Q2 2026, net product sales of Pedmark reached $17.1 million, a 78% year-over-year increase from $9.7 million in Q2 2025. Of current total business, over 80% comes from three tumor types: testicular cancer (the largest single driver), cervical cancer, and head and neck cancer. More than 50% of revenue comes from home infusion centers, with balanced growth split between academic oncology centers and community oncology practices.

Risks & headwinds

- Forward-looking statements regarding future growth, clinical trial results, regulatory progress, and commercial adoption are inherently uncertain, and actual results may differ materially from expectations. Risks are disclosed in full in the company's SEC filings. - The company's growth is dependent on continued successful adoption of Pedmark by healthcare providers, which may be slower than expected despite increased sales force expansion and awareness efforts. - Regulatory approval for label expansion and Japan market entry is not guaranteed, and is contingent on successful clinical trial data readouts, which are still pending. - Revenue collection cycles can create quarterly swings in cash position that may differ from expectations, even if full-year cash generation remains positive.

Analyst Q&A

• Q: What share of Pedmark's new patient starts are testicular cancer patients, what is the current mix between academic and community oncology usage, and what lifecycle management plans does the company have for Pedmark? /

  A: Testicular cancer remains the largest single driver of Pedmark business, representing the majority of the over 80% of business coming from testicular, cervical, and head and neck cancers. Usage is growing evenly across both academic centers and community oncology practices, with no meaningful skew to one channel. For lifecycle management, growing data from ongoing investigator-sponsored studies across multiple tumor types, age groups, and disease stages may enable future label expansion and stronger NCCN guideline recommendations, which will expand the product's addressable market.

• Q: How productive are the newly added sales reps, how far along is their productivity ramp, and should investors expect sequential growth acceleration in the second half of 2026? /

  A: New sales reps have already been meaningful contributors to Q2 2026 growth, and have helped the company reach new patients in geographic regions that previously had no Pedmark usage. The reps were only hired in early March, so they are still early in their productivity ramp and will continue to improve as they build relationships with providers. July 2026 set new all-time records for key commercial metrics, and growth momentum is expected to continue accelerating through the third and fourth quarters of 2026.

• Q: What is the timeline for potentially introducing 2027 revenue guidance, when might NCCN guideline classification improve, how is IST enrollment progressing, and what is the status of Japan launch preparations? /

  A: The company has not provided formal guidance to date to avoid the risk of missed guidance, but management is actively discussing whether to introduce 2027 guidance. Improved NCCN classification is contingent on maturing clinical data from ISTs, which will be collected first before any submissions to NCCN panels. The company supports site awareness for open ISTs to drive enrollment without interfering in trial conduct for compliance, and early enrollment pace has been encouraging. For Japan, management will meet with potential partners in Japan the following week to advance discussions, with a focus on securing the right partnership to speed approval and maximize long-term value for Pedmark across the Asia-Pacific region.

• Q: Is the company still evaluating complementary in-licensing opportunities in oncology supportive care to leverage its expanded sales force? /

  A: The company continues to actively evaluate complementary in-licensing opportunities that would fit its existing commercial infrastructure and therapeutic focus. While no suitable assets have been secured to date, management remains open to discussions that would add long-term value for shareholders.