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On Tuesday, Fennec Pharmaceuticals Inc. (NASDAQ:FENC) received a reiterated Buy rating and a $13.00 price target from H.C. Wainwright. The firm’s analyst highlighted the company’s fourth-quarter financial performance, which was disclosed on Monday. Despite Fennec’s net revenue falling slightly short of expectations at $7.9 million, compared to the anticipated $8.5 million, the company’s net loss for the quarter was considerably less than projected. Fennec reported a net loss of $0.06 per share, markedly lower than the estimated loss of $0.19 per share. According to InvestingPro data, the company maintains impressive gross profit margins of 93.52% and has achieved remarkable revenue growth of 278% over the last twelve months.
The smaller-than-expected net loss was attributed to substantially lower operating expenses. Fennec Pharmaceuticals is expected to benefit from its market expansion efforts targeting the adolescent and young adult (AYA) community. The firm anticipates that the company will secure payor reimbursement and witness increased product adoption at leading academic centers, including Cedars-Sinai in Los Angeles and Mount Sinai in New York. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 7.8, providing ample resources for its expansion plans. Subscribers can access 6 additional ProTips and comprehensive financial metrics on the platform.
Looking ahead, H.C. Wainwright has slightly adjusted its full-year 2025 total revenue estimate for Fennec to $46.7 million from the previous forecast of $48.4 million. Additionally, the firm has set a full-year 2026 total revenue projection of $87.7 million. This forecast is based on the expectation of gradually increasing revenue growth driven by the rising adoption rates of PEDMARK, Fennec’s lead product.
The analyst from H.C. Wainwright expressed confidence in the company’s future performance, stating that Fennec is well-positioned to capitalize on these growth opportunities. The firm’s maintained Buy rating and 12-month price target of $13 reflects this optimistic outlook for the company’s financial prospects.
In other recent news, Fennec Pharmaceuticals reported its fourth-quarter 2024 financial results, surpassing revenue expectations but showing a wider loss than the previous year. The company posted Q4 revenue of $7.92 million, slightly exceeding analyst estimates of $7.88 million and marking a 13% increase from the previous quarter. However, Fennec reported a net loss of $0.06 per share, compared to a loss of $0.10 per share in Q4 2023. For the full year 2024, Fennec achieved PEDMARK net product sales of $29.6 million, a 40% increase year-over-year. The company concluded the year with $26.6 million in cash and cash equivalents. Fennec also expanded its global reach with the commercial launch of PEDMARQSI in the UK and Germany, targeting pediatric cancer patients. Despite these developments, the wider quarterly loss and lack of profitability seemed to concern investors.
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