Fennec Pharma(US:FENC)2025-05-20 20:00Financial Data and Key Metrics Changes - The company reported $8.8 million in top-line revenue for the most recent quarter, showing growth from $8 million in the previous quarter [40][41] - To achieve cash flow breakeven, the company needs to reach a normalized revenue run rate of approximately $8.5 million to $9 million per quarter, aligning with annual cash operating expenses of roughly $33 million to $35 million [41][42] Business Line Data and Key Metrics Changes - The product Pedmark, sodium thiosulfate, is the first FDA-approved treatment for ototoxicity risk due to cisplatin in pediatric patients, with recent NCCN guidelines expanding its recommendation to patients aged 15 to 39 [5][6] - The company has seen two consecutive quarters of growth, attributed to improved marketing strategies and a focus on the adolescent and young adult (AYA) population [16][22] Market Data and Key Metrics Changes - The AYA segment presents a significant market opportunity, with approximately 20,000 patients in the AYA space receiving cisplatin, compared to about 3,000 pediatric patients [17][18] - The partnership with Norgene for European markets includes an upfront fee of approximately $43 million and royalties starting in the mid-teens, with potential milestones exceeding $200 million [44][45] Company Strategy and Development Direction - The company aims to enhance its commercial execution and has focused on increasing the competency of its medical team to engage with key opinion leaders [23][25] - Future growth strategies include targeting high prescribers of cisplatin and potentially introducing additional complementary products in oncology supportive care [56][58] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of increasing awareness of Pedmark among prescribers and improving execution in sales and marketing efforts [35][36] - The company is optimistic about achieving profitability and is exploring opportunities in Japan, where a trial for Pedmark has been completed and is under review [58][59] Other Important Information - The company has approximately $23 million in cash as of March 31, with a convertible note of $19.5 million remaining, which they plan to address as profitability increases [50][51] - Recent approvals for Pedmark in Scotland and ongoing efforts to expand into additional EU countries are part of the company's growth strategy [48][47] Q&A Session Summary Question: What is the revenue run rate needed for cash flow breakeven? - The company needs to achieve a revenue run rate of approximately $8.5 million to $9 million per quarter to reach cash flow breakeven [41][42] Question: Can you describe the partnership with Norgene? - The partnership includes an upfront fee of approximately $43 million, royalties starting in the mid-teens, and potential milestones exceeding $200 million [44][45] Question: What are the plans regarding the convertible debt? - The company has retired $13 million of the convertible note, which currently stands at $19.5 million, and plans to explore options for further retirement as profitability improves [51][52]