Fennec Pharma(FENC) - 2024 Q3 - Quarterly Report

Financial Performance - PEDMARK achieved net product sales of $6,974,000 for the three months ended September 30, 2024, representing an increase of 7.06$6,515,000 in the same period of 2023[148]. - Gross profit for the same period was $5,617,000, down from$6,184,000 in 2023, indicating a decrease of 9.15%[150]. - Net product sales for the nine months ended September 30, 2024, were $21,655, an increase of$10,138 compared to $11,517 in the same period in 2023[156]. - Total net revenue for the nine months ended September 30, 2024, was$39,613, up from $11,517 in 2023, reflecting a change of$28,096[156]. - The company recorded a net loss of $1,549 for the nine months ended September 30, 2024, a significant improvement from a net loss of$13,363 in the same period in 2023[156]. Operating Expenses - Total operating expenses increased to $12,176,000 in Q3 2024, up from$7,532,000 in Q3 2023, reflecting a rise of 61.5%[148]. - Selling and marketing expenses rose to $4,601,000, compared to$3,384,000 in the prior year, marking an increase of 36%[148]. - General and administrative expenses increased by $2,316,000, driven by higher salaries and litigation costs, compared to the same period in 2023[149]. - Selling and marketing expenses increased to$14,482 for the nine months ended September 30, 2024, compared to $8,255 in 2023, primarily due to increased payroll and marketing efforts[157]. - General and administrative expenses rose by$5,240 to $18,857 for the nine months ended September 30, 2024, attributed to higher consulting and professional costs[158]. Research and Development - Research and development expenses rose to$97,000, up from $12,000 in the same quarter of 2023, reflecting an increase of 808.33$40,320 as of September 30, 2024, from $13,269 at December 31, 2023, driven by cash inflows from the Norgine licensing deal and product sales[162]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was$28,454, compared to a net cash used of $12,283 in 2023[163]. - Interest income rose by$957 to $1,283 for the nine months ended September 30, 2024, due to higher cash balances and interest rates[161]. Strategic Developments - The company received approximately$43,200,000 upfront from an exclusive licensing agreement with Norgine for PEDMARQSI®[138]. - PEDMARK received Orphan Drug Exclusivity from the FDA, providing seven years of market exclusivity until September 20, 2029[141]. - The European Commission granted Marketing Authorization for PEDMARQSI® in June 2023, including a Pediatric Use Marketing Authorization with up to 10 years of market protection[137]. - The company continues to explore strategic collaborations with other pharmaceutical and biotechnology companies to enhance its market position[164]. Shareholder Information - The total outstanding shares increased to 33,027 thousand as of September 30, 2024, from 32,209 thousand at December 31, 2023[165]. Interest and Debt - Interest expense increased by $169,000 due to higher debt levels compared to the same period in 2023[152].