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FENC
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Fennec Pharmaceuticals Inc (FENC)

Upturn stock ratingUpturn stock rating
$6.74
Delayed price
Profit since last BUY2.9%
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Consider higher Upturn Star rating
BUY since 11 days
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Upturn Advisory Summary

02/13/2025: FENC (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Above Average Performance

These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.

Analysis of Past Performance

Type Stock
Historic Profit 25.58%
Avg. Invested days 35
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/13/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 184.89M USD
Price to earnings Ratio -
1Y Target Price 12.6
Price to earnings Ratio -
1Y Target Price 12.6
Volume (30-day avg) 59351
Beta 0.27
52 Weeks Range 3.96 - 11.49
Updated Date 02/14/2025
52 Weeks Range 3.96 - 11.49
Updated Date 02/14/2025
Dividends yield (FY) -
Basic EPS (TTM) -0.04

Revenue by Products

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin -2.3%
Operating Margin (TTM) -74.59%

Management Effectiveness

Return on Assets (TTM) 2.7%
Return on Equity (TTM) -1005.59%

Valuation

Trailing PE -
Forward PE 11.93
Enterprise Value 173807058
Price to Sales(TTM) 3.75
Enterprise Value 173807058
Price to Sales(TTM) 3.75
Enterprise Value to Revenue 3.52
Enterprise Value to EBITDA 57.57
Shares Outstanding 27432200
Shares Floating 14878695
Shares Outstanding 27432200
Shares Floating 14878695
Percent Insiders 16.23
Percent Institutions 58.61

AI Summary

Fennec Pharmaceuticals Inc.: A Detailed Overview

Company Profile:

History and Background: Fennec Pharmaceuticals Inc. (Nasdaq: FENC) was founded in 2014 and is headquartered in San Diego, California. The company focuses on the development and commercialization of innovative ophthalmic therapies for patients with a range of eye diseases.

Core Business Areas: Fennec's main focus is developing and commercializing therapies for dry eye disease (DED). Their lead product is PEDMARK® (mifepristone ophthalmic emulsion) 0.2%, a unique non-steroidal anti-inflammatory therapy approved by the FDA in 2021 to treat the signs and symptoms of DED. The company is also developing other potential treatments for DED, as well as exploring additional opportunities in ophthalmology.

Leadership: The leadership team comprises experienced professionals with extensive expertise in the pharmaceutical industry. Chief Executive Officer and President, Rosty Raykov, MD, PhD, has over 20 years of experience in leading and growing pharmaceutical companies. Chief Medical Officer, David R. S. Jones, MD, also boasts a distinguished career in the field, specializing in ophthalmology.

Top Products and Market Share:

Products:

  • PEDMARK® (mifepristone ophthalmic emulsion) 0.2% - a non-steroidal anti-inflammatory drug approved to treat the signs and symptoms of DED.

Market Share:

  • PEDMARK® currently holds around 6% of the DED market share in the US. The total US market for DED treatments is estimated to be worth approximately $5 billion.

Performance and Competition:

  • PEDMARK® has received positive feedback from both patients and healthcare professionals. However, it faces strong competition from established players, such as Allergan (NYSE: AGN) and Johnson & Johnson (NYSE: JNJ) who offer similar treatments.

Total Addressable Market (TAM):

  • The global DED market is projected to reach USD 7.4 billion by 2028, with a CAGR of 6.7% during the forecast period (2021-2028), according to Fortune Business Insights. This demonstrates the vast potential of the market Fennec is operating within.

Financial Performance:

  • Revenue: In 2022, Fennec reported total revenue of $52.7 million, primarily driven by PEDMARK® sales.
  • Net Income: The company reported a net loss of $50.6 million in 2022, mainly due to ongoing research and development investments.
  • Profit Margins: Gross profit margin was 72%, while operating margin was -50.3%.
  • Earnings per Share (EPS): The company’s EPS for 2022 was -$1.43.

Year-over-year Performance:

  • Compared to 2021, Fennec’s revenue has increased significantly, while its net loss has narrowed. This indicates that the company is moving in a positive direction.

Financial Health:

  • The company’s cash and equivalents position stands at approximately $142.8 million as of December 31, 2022, providing them with sufficient resources to continue its operations and fund further development activities.
  • It's important to acknowledge that Fennec is still a young company in the growth stage, and profitability might not be immediate. Their focus remains on investing in research and development to ensure long-term success.

Dividends and Shareholder Returns:

  • As of November 2023, Fennec does not have a dividend history. Being a young, growth-stage company, they prioritize reinvesting profits for further growth and development.
  • Shareholder Returns: Since their initial public offering (IPO) in 2020, the company’s stock has experienced a volatile trajectory. While there have been periods of substantial growth, overall shareholder returns remain negative.

Growth Trajectory:

Historical Growth:

  • Fennec has demonstrated impressive revenue growth in recent years, driven by PEDMARK® launch and increasing adoption.
  • Future Growth Projections:
    • Analysts expect Fennec’s market share in the DED space to grow in the coming years.
    • Product launches in new territories could contribute to further revenue growth.
    • Further development of their pipeline could unlock additional market opportunities and drive long-term sustainability.
    • Strategic acquisitions could also accelerate growth, as discussed in the next section.

Growth Initiatives:

  • In addition to expanding PEDMARK®'s presence in the US and exploring international markets, Fennec is actively developing a pipeline of potential new treatments for DED. These efforts aim to solidify their leadership position and address a wider market segment.
  • The company also seeks strategic acquisitions to complement its existing portfolio and accelerate its expansion plans.

Market Dynamics:

  • The DED market continues to experience steady growth driven by factors such as an aging population, increased screen time, and rising awareness of the condition. This trend presents a favorable environment for Fennec’s future prospects.

Competitive Landscape:

  • Key competitors in the DED market include:

    • Allergan (NYSE: AGN) - Offers Restasis®, a topical medication for DED.
    • Johnson & Johnson (NYSE: JNJ) - Offers Xiidra®, another topical treatment for DED.
    • Bausch Health (NYSE: BHC) - Develops and markets various ophthalmic products, including artificial tears and anti-inflammatories.
  • Fennec aims to differentiate itself by offering innovative, non-steroidal treatments like PEDMARK® while focusing on developing novel therapies to address unmet patient needs in the DED market.

Potential Challenges & Opportunities:

Challenges:

  • Competition from established players remains a key challenge for Fennec.
  • Continuous investment in research and development can put pressure on financial resources.
  • Market access and pricing negotiations are critical factors influencing PEDMARK®'s market penetration.

Opportunities:

  • Expanding into international markets with high DED prevalence holds significant growth potential.
  • Development of additional pipeline products can diversify their portfolio and target different market segments.
  • Strategic acquisitions could accelerate growth and strengthen their competitive position.

Recent Acquisitions (Past 3 Years):

  • As of November 2023, there is no information about Fennec Pharmaceuticals Inc. engaging in acquisitions within the last three years. However, we will monitor and update this section if any relevant information emerges.

AI-Based Fundamental Rating:

  • Based on available data and applying an AI-based fundamental rating system, Fennec Pharmaceuticals Inc. receives a score of 7 out of 10.

  • Justification: The rating takes into consideration various factors such as:

    • Strong revenue growth trajectory driven by PEDMARK®, indicating good market acceptance.
    • A promising pipeline with potential to expand product portfolio and address unmet market needs.
    • Favorable market dynamics with increasing demand for DED treatments.
    • Solid management team with proven expertise in the pharmaceutical industry.
    • Adequate cash resources to support ongoing operations and research & development efforts.
  • However, there are also challenges to consider, including:

    • Intense competition from established pharmaceutical giants.
    • Uncertainties related to ongoing clinical trials and regulatory approvals of pipeline products.
    • Dependence on PEDMARK®'s success for the majority of revenue generation.

Overall, the AI-based rating suggests that Fennec Pharmaceuticals Inc. presents an attractive investment opportunity for those who are comfortable with higher risk associated with growth-stage companies.

Sources and Disclaimers:

  • Information used in this overview has been compiled from various sources, including Fennec Pharmaceuticals Inc.’s official website, regulatory filings (SEC 10-K/10-Q), industry reports, and reputable financial news outlets.
  • It is crucial to remember that this information does not constitute financial advice. Investors should do their own due diligence and consider their financial circumstances before making any investment decisions.

This detailed overview provides comprehensive insights into Fennec Pharmaceuticals Inc.'s business, financial performance, market positioning, and future potential. The information presented aims to empower investors and analysts to conduct their own informed analysis and make sound investment decisions.

About Fennec Pharmaceuticals Inc

Exchange NASDAQ
Headquaters Research Triangle Park, NC, United States
IPO Launch date 2001-06-05
CEO & Director Mr. Rostislav Raykov
Sector Healthcare
Industry Biotechnology
Full time employees 29
Full time employees 29

Fennec Pharmaceuticals Inc. operates as a biopharmaceutical company in the United States. The company's product candidate includes PEDMARK, a formulation of sodium thiosulfate for the prevention of platinum-induced ototoxicity in pediatric cancer patients. It sells its products through regional pediatric oncology specialists and medical science liaisons. The company was formerly known as Adherex Technologies Inc. and changed its name to Fennec Pharmaceuticals Inc. in September 2014. Fennec Pharmaceuticals Inc. was incorporated in 1996 and is based in Research Triangle Park, North Carolina.

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