RESEARCH TRIANGLE PARK, N.C. - Fennec Pharmaceuticals (NASDAQ:FENC) Inc. (NASDAQ: FENC; TSX: FRX), a specialty pharmaceutical company, announced today that Jeff Hackman has been appointed as its Chief Executive Officer (CEO) and a member of the Board of Directors, effective on or about August 16, 2024.
Hackman is set to steer the company's strategic direction, focusing on the expansion of PEDMARK®, a treatment designed to mitigate hearing loss in pediatric cancer patients caused by cisplatin chemotherapy.
Jeff Hackman, with over three decades of commercial leadership experience and a track record of successful product launches in oncology, is expected to leverage his expertise to enhance the use of PEDMARK® in community oncology and the adolescent and young adult (AYA) population.
His previous roles at Sigma Tau, Baxalta, Shire, and EUSA Pharma have seen him manage product portfolios that generated significant revenues, particularly in the outpatient oncology community and the AYA demographic.
Dr. Khalid Islam, Chairman of Fennec Pharmaceuticals, expressed confidence in Hackman's ability to contribute to the company's growth and transformation, citing his extensive commercialization experience in oncology as a valuable asset.
The incoming CEO, Hackman, also shared his enthusiasm for leading Fennec and emphasized the importance of bringing PEDMARK® to patients in need.
PEDMARK® has been recognized as the first and only therapy approved in the U.S. and Europe to reduce the risk of permanent hearing damage from cisplatin-induced ototoxicity in pediatric cancer patients.
The FDA approved PEDMARK® in September 2022, followed by European Commission Marketing Authorization in June 2023 and U.K. approval in October 2023.
The treatment benefits from Orphan Drug Exclusivity in the U.S., providing seven years of market protection, and Pediatric Use Marketing Authorization in Europe, which includes an additional two years of data and market protection.
Rosty Raykov, the outgoing CEO who has led Fennec since 2009, will continue to serve on the Board of Directors. His leadership has been pivotal in the development and approval of PEDMARK®.
This leadership change comes as Fennec Pharmaceuticals continues to focus on the development and commercialization of PEDMARK® and Pedmarqsi® to address cisplatin-induced ototoxicity in pediatric patients.
The company holds exclusive worldwide licensing rights from Oregon Health and Science University for the use of sodium thiosulfate for chemoprotection against platinum chemotherapy-induced ototoxicity. The information reported is based on a press release statement from Fennec Pharmaceuticals Inc.
In other recent news, Fennec Pharmaceuticals has seen a series of key developments. The company's first quarter of 2024 financial results revealed a shortfall in product sales, which totaled $7.4 million, falling short of the projected $10.6 million primarily due to competition from compounded formulations of sodium thiosulfate.
However, Fennec reported a robust total net revenue of $25.4 million for the same period, bolstered by substantial licensing revenue from their agreement with Norgine and sales from PEDMARK.
In light of these developments, H.C. Wainwright revised its price target for Fennec to $15, down from the previous $18, yet maintained a Buy rating for the company's shares.
Adding to the recent news, Fennec Pharmaceuticals announced the departure of Adrian Haigh from his role as Chief Operating Officer. Haigh's decision aligns with Fennec's strategic pivot towards the community treated Adolescent and Young Adult population in the U.S. The company is actively seeking a new U.S.-based leader with experience in commercializing oncology products.
Lastly, Fennec is currently addressing FDA safety concerns and unlawful compounding practices that have affected PEDMARK's market performance.
In collaboration with Norgine, the company plans to launch PEDMARK in Europe and other regions in the fourth quarter of 2024. These are some of the recent developments that have taken place at Fennec Pharmaceuticals.
InvestingPro Insights
As Fennec Pharmaceuticals Inc. (NASDAQ: FENC) welcomes Jeff Hackman as its new CEO, the company's financial health and market performance provide a backdrop to the strategic decisions ahead. Fennec's commitment to expanding the use of PEDMARK® coincides with notable financial metrics that suggest a strong foundation for future growth.
InvestingPro data indicates that Fennec holds a market capitalization of $157.41 million, a testament to the company's value in the pharmaceutical market. Despite recent volatility, with the stock price taking a significant hit over the past three months, resulting in a 37.59% decline, the company's financials reveal a robust gross profit margin of 96.19% for the last twelve months as of Q1 2023. This high margin suggests efficient management of production costs and strong pricing power for Fennec's products.
Furthermore, Fennec's revenue growth is exceptionally high, with a reported increase of 1299.5% over the last twelve months as of Q1 2023. Such growth is indicative of the company's success in expanding its product offerings and market reach, aligning with the goals set by the incoming CEO to enhance the adoption of PEDMARK®.
InvestingPro Tips highlight that Fennec is trading at a high Price / Book multiple of 52.23 and a P/E ratio of 58.09, which may suggest that the market has high expectations for the company's future earnings growth. Additionally, analysts predict that the company will be profitable this year, which, coupled with the expectation of net income growth, could signal a positive outlook for investors.
For those seeking a deeper analysis, InvestingPro offers additional insights, with 13 more InvestingPro Tips available at https://www.investing.com/pro/FENC. These tips can provide investors with a more comprehensive understanding of Fennec Pharmaceuticals' financial health and market position as they navigate the ever-evolving pharmaceutical industry.
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