0001104659-26-036182
SEC filingFennec Pharmaceuticals Inc. reported total net revenues of $44.6 million for the fiscal year ended December 31, 2025, a decrease from $47.5 million in the prior year. This decline was driven by the absence of $18.0 million in licensing revenue recognized in 2024 from the Norgine agreement, partially offset by a 51% increase in net product sales to $44.6 million. The company reported a net loss of $9.7 million, compared to a net loss of $0.4 million in 2024. Operating expenses increased to $50.9 million, primarily due to higher selling, marketing, and administrative costs supporting the commercial expansion of PEDMARK®. Despite the net loss, the company strengthened its balance sheet, ending the year with $36.8 million in cash and cash equivalents and shareholders' equity of $35.5 million, compared to a deficit in the prior year. The company successfully settled patent litigation with Cipla, securing market exclusivity until September 2033.
Fennec Pharmaceuticals reported total net revenues of $44.6 million for the fiscal year ended December 31, 2025, a decrease of $2.9 million or 6.1% from $47.5 million in the prior year. The decline was attributable to the absence of $18.0 million in licensing revenue recognized in 2024 from the Norgine partnership, which was partially offset by robust growth in product sales. Net product sales increased by $15.1 million or 50.9% to $44.6 million, driven by increased market penetration and expanded access for PEDMARK®. The company reported a net loss of $9.7 million, or $0.34 per share, compared to a net loss of $0.4 million, or $0.02 per share, in the prior year. Operating expenses rose to $50.9 million from $45.0 million, primarily due to increased selling, marketing, and general administrative expenses.
Revenue was composed entirely of product sales in 2025, compared to a mix of product sales and licensing revenue in 2024. Net product sales of $44.6 million reflected a 50.9% year-over-year increase, driven by the continued commercialization of PEDMARK® in the United States. The company noted sequential quarterly revenue growth throughout 2025 and achieved positive operating cash flow in the third quarter. Licensing revenue was zero in 2025, compared to $18.0 million in 2024, which related to the upfront payment from the Norgine agreement for the commercialization of PEDMARQSI® in Europe, Australia, and New Zealand.
Gross profit for the year was $40.8 million, representing a gross margin of 91.5%, a slight decrease from 93.3% in the prior year. The cost of product sales increased to $3.8 million from $3.2 million, consistent with higher commercial volumes. Operating margin was -14.1%, compared to 5.4% in the prior year. The decline in operating margin was driven by the absence of high-margin licensing revenue and increased operating expenses, particularly in selling and marketing ($18.6 million) and general and administrative ($28.3 million) functions, as the company scaled its commercial infrastructure.
Net cash used in operating activities was $12.5 million, compared to net cash provided of $27.0 million in the prior year. The decrease was primarily due to the absence of the Norgine upfront payment and changes in working capital. Financing activities provided $22.6 million, largely from net proceeds of $42.0 million from an equity offering, partially offset by $19.5 million in debt repayments. The company ended the year with $36.8 million in cash and cash equivalents and shareholders' equity of $35.5 million, a significant improvement from a deficit of $5.9 million at the end of 2024. The company repaid its term loan, eliminating the balance.
Management believes that existing cash and cash equivalents of $36.8 million are sufficient to fund anticipated operating and capital requirements for at least the next 12 months. The company continues to focus on the commercialization of PEDMARK® in the U.S. and seeks regulatory approvals in additional territories. A key strategic development was the settlement of patent litigation with Cipla, which prevents generic entry until September 1, 2033, securing a significant period of market exclusivity. The company is also pursuing regulatory registration in Japan based on positive clinical trial results.