On Thursday, H.C. Wainwright adjusted its financial outlook on shares of Fennec Pharmaceuticals Inc. (NASDAQ:FENC), reducing the price target from $15.00 to $13.00, while still endorsing the stock with a Buy rating. The revision was attributed to slower than anticipated sales of PEDMARK, Fennec's flagship product.
Fennec Pharmaceuticals recently disclosed its second-quarter financials for the year 2024 along with a business update. The company reported product revenues of $7.3 million, a slight decrease from the first quarter of 2024. This figure fell short of the expected $8.9 million in product sales and was significantly below the anticipated top-line revenue of $24.9 million.
The lower-than-expected revenue was primarily due to a reassessment of when the company would recognize revenue from a €40 million upfront payment from Norgine. It is now anticipated that the majority of this payment will be recognized at a later date than initially forecasted.
Consequently, H.C. Wainwright has revised its full-year 2024 net product sales estimate for Fennec Pharmaceuticals to $33.1 million, down from the prior estimate of $40.7 million. Moreover, the total revenue forecast for 2024 has been adjusted to $56.7 million from the previous projection of $84.3 million.
Looking ahead to 2025, the firm has set the net product sales estimate at $54.6 million, a decrease from the earlier forecast of $73 million. The total revenue estimate for the full year of 2025 is now $61.4 million, which is a reduction from the prior estimate of $81.2 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.