Fennec Pharmaceuticals Inc. (NASDAQ:FENC) shares jumped 7.88% in pre-market trading on Tuesday after the specialty pharmaceutical company reported second-quarter earnings and revenue above analyst expectations, supported by continued growth in PEDMARK sales.
Adjusted earnings came in at $0.05 per share, exceeding the analyst consensus of $0.02 by $0.03. Revenue reached $17.87 million, ahead of the $16.39 million forecast.
The results extended the company’s recent growth momentum and showed a significant improvement in adjusted profitability compared with the same quarter last year.
PEDMARK sales jump 78%
Net product sales increased to $17.1 million from $9.7 million in the second quarter of 2025, representing year-on-year growth of 78%.
Fennec attributed the increase to stronger demand for PEDMARK across both new and existing accounts, as well as expansion into the adolescent and young adult population.
The quarter was also the first full reporting period since Fennec expanded its commercial organisation, giving investors an early indication of how the larger sales operation is contributing to product growth.
“Our second quarter reflects another period of strong execution across the business, highlighted by our seventh consecutive quarter of growth,” said Jeff Hackman, chief executive officer of Fennec Pharmaceuticals. “As evidenced in our record EBITDA generation in the second quarter, we have a highly effective business model that is primed to optimize our anticipated growth while advancing our mission to improve outcomes for patients.”
Adjusted EBITDA turns positive
Improving sales translated into a substantial change in Fennec’s adjusted profitability.
Adjusted EBITDA reached $2.8 million in the second quarter, compared with an adjusted EBITDA loss of $1.2 million in the same period of 2025.
The swing into positive adjusted EBITDA provides another measure of the operating leverage emerging as PEDMARK revenue expands, although investment in commercial growth also increased significantly.
Selling and marketing expenses climbed to $10.7 million from $4.8 million a year earlier, primarily reflecting higher commercialisation costs and the expanded sales organisation.
General and administrative expenses moved in the opposite direction, declining to $4.6 million from $6.5 million due mainly to lower legal and professional fees.
Cash position edges higher
Fennec ended June with $41.2 million in cash and cash equivalents, up from $40.1 million at the end of the first quarter.
For investors, the combination of a Q2 earnings beat, 78% product sales growth and a move into positive adjusted EBITDA provides evidence that increased PEDMARK demand is translating into stronger financial performance.
The next key measure will be whether Fennec can sustain that sales momentum while absorbing the higher commercial spending associated with its expanded organisation.
Fennec Pharmaceuticals stock price
