Fennec Pharmaceuticals (FENC) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 net revenues of $15.1 million, a 73% year-over-year increase, driven by expanded PEDMARK adoption, field sales enhancements, and strong demand in key cancer segments.

• Net income for Q1 2026 was $201,000, compared to a net loss of $1.2 million in Q1 2025, reflecting improved profitability.

• Cash and cash equivalents stood at $40.1 million as of March 31, 2026, up from $36.8 million at year-end 2025, supported by positive operating cash flow and option exercises.

• Settled patent litigation with Cipla, securing U.S. market exclusivity for PEDMARK until at least September 2033.

• Clinical interest in PEDMARK is increasing, with new investigator-initiated studies and broader adoption in adolescent, young adult, and adult populations.

Financial highlights

• Net product sales reached $15.1 million in Q1 2026, up from $8.8 million in Q1 2025, reflecting increased market penetration.

• Operating expenses (excluding stock-based compensation) were approximately $14 million, up $6 million year-over-year, mainly due to increased SG&A and commercial headcount.

• Selling and marketing expenses rose to $11.4 million from $3.2 million year-over-year, mainly due to sales force expansion.

• General and administrative expenses decreased to $3.2 million from $5.9 million, primarily due to lower legal fees as litigation concluded.

• Operating cash flow was $2.4 million in Q1 2026, compared to a $4.3 million outflow in Q1 2025.

Outlook and guidance

• Management anticipates that current cash, cash equivalents, and projected PEDMARK revenues will be sufficient to fund operations under the current plan for at least the next twelve months.

• Anticipate Q2 ending cash to be lower than Q1 due to collection cycles, but expect positive cash growth in the second half of 2026.

• Continued expansion of PEDMARK into new accounts and patient populations, with additional investigator-initiated studies underway.

• Norgine's PEDMARQCY launches in multiple international markets in 2026 are expected to ramp royalties and milestone payments.