Fennec Pharmaceuticals Inc. (FENC): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a focused biotech commercialization story, and honestly, Fennec Pharmaceuticals Inc.'s business model right now boils down to one key asset: PEDMARK. As of late 2025, they've successfully transitioned from pure R&D to a direct sales operation in the U.S., pulling in $12.5 million in net product sales in Q3 alone, while also collecting those crucial double-digit tiered royalties from Norgine overseas. It's a lean setup built around orphan drug exclusivity until 2039 and a high-touch patient support system like Fennec HEARS™. Want to see exactly how they are balancing high Selling and Marketing expenses against that growing revenue stream and their $21.9 million cash position as of September 30, 2025? Dive into the full nine-block canvas below to map out their near-term path.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Fennec Pharmaceuticals Inc. relies on to get PEDMARK^® and PEDMARQSI^® to patients. These aren't just casual agreements; they are critical for global reach and clinical validation. Honestly, the success of a specialty pharma company often hinges on these external players.

Norgine Pharmaceuticals Ltd. for ex-U.S. commercialization and distribution

Fennec Pharmaceuticals Inc. partnered with Norgine Pharmaceuticals Ltd. in March 2024 for the exclusive commercialization and distribution of PEDMARQSI^® across Europe, the U.K., Australia, and New Zealand. This deal immediately bolstered Fennec Pharmaceuticals Inc.'s balance sheet with an upfront payment of €40 million.

The partnership is structured for meaningful participation in ex-U.S. success, with Fennec Pharmaceuticals Inc. set to receive up to €210 million in additional commercial and regulatory milestone payments. Furthermore, Fennec Pharmaceuticals Inc. is entitled to double-digit tiered royalties on net sales, reaching up to the mid-twenties percent. By the first quarter of 2025, Norgine had commercially launched PEDMARQSI^® in England and Wales, followed by Germany in February 2025. In May 2025, Norgine secured acceptance from the Scottish Medicines Consortium (SMC) for PEDMARQSI^® use in Scotland.

Contract Manufacturing Organizations (CMOs) for drug production

Fennec Pharmaceuticals Inc. relies on external partners to produce its commercial product. While the specific names of the Contract Manufacturing Organizations (CMOs) are not detailed in recent public filings, the operational structure implies established agreements for manufacturing PEDMARK^® to support the U.S. market, which recorded net product sales of approximately $12.5 million in the third quarter of 2025.

The company's intellectual property provides a strong foundation, with patents protecting PEDMARK^® until 2039 in both the U.S. and internationally.

Children's Oncology Group (COG) for clinical research and data

The clinical foundation for PEDMARK^® is heavily supported by data generated through cooperative groups. PEDMARK^® was studied in two completed Phase 3 clinical studies: COG ACCL0431 and SIOPEL 6. This historical data is crucial for current endorsements.

The partnership's impact is reflected in current guidelines:

• The NCCN Clinical Practice Guidelines in Oncology (NCCN Guidelines^®) for Adolescent and Young Adult (AYA) Oncology V.1.2025 recommend considering sodium thiosulfate (PEDMARK^®) for ototoxicity prevention.
• PEDMARK^® is the first and only U.S. Food and Drug Administration (FDA) approved therapy indicated to reduce the risk of ototoxicity associated with cisplatin in pediatric patients.
• PEDMARQSI^® holds Pediatric Use Marketing Authorization in Europe, which includes eight years plus two years of data and market protection.

Specialty pharmacies for product distribution and patient access

For U.S. distribution of PEDMARK^®, which launched in October 2022, Fennec Pharmaceuticals Inc. utilizes a specialty pharmacy network. To ensure patient success, the company significantly strengthened its patient support offering, Fennec HEARS™, in the first quarter of 2025.

The Fennec HEARS™ program is designed to improve the patient journey through:

• Strengthened Health Care Provider (HCP) and patient services.
• Expanded payer reimbursement support.
• Streamlined access to home nursing resources.

This focus on access is key, especially since, as of January 2025, there were 382 unique specialty drugs tracked with a manufacturer-defined limited or exclusive specialty pharmacy network in the U.S. market.

Academic and community oncology key opinion leaders

Adoption of PEDMARK^® is driven by engagement with key opinion leaders across different practice settings. Fennec Pharmaceuticals Inc.'s segmentation model targets both academic and community providers.

Key partnership metrics and milestones include:

The company is also exploring international expansion through a partnership with InPharmus to expand into the GCC market.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Key Activities

You're looking at the core engine driving Fennec Pharmaceuticals Inc. right now, which is all about getting PEDMARK to the right patients and managing the global footprint. It's a commercial execution story built on a foundation of recent clinical validation.

U.S. commercialization and direct sales of PEDMARK

The key activity here is driving adoption through a focused commercial team. The results show this is working; the company delivered its strongest quarter in history in Q3 2025. This focus includes deepening penetration within high-volume centers.

The targeted sales strategy zeroes in on institutions that account for over 60% of U.S. cisplatin prescriptions, specifically targeting the Adolescent and Young Adult (AYA) segment. The Fennec HEARS™ patient support program is a critical activity supporting this by streamlining access for providers and patients.

Here's a look at the recent sales performance:

Honestly, the first nine months of 2025 net product sales actually surpassed the total net product sales for the entire 2024 fiscal year.

Global regulatory compliance and lifecycle management

This involves maintaining the existing approvals and leveraging intellectual property to secure market longevity. PEDMARK is the first and only FDA-approved therapy for cisplatin-induced ototoxicity (CIO) in pediatric patients, approved in September 2022.

Lifecycle management is supported by strong exclusivity terms:

• Orphan Drug Exclusivity in the U.S. for 7 years.
• Pediatric Use Marketing Authorization in Europe for 10 years.
• Patents protecting PEDMARK until 2039 in the U.S. and internationally.

The European brand, PEDMARQSI®, saw commercial launches in Germany in February 2025, following launches in England and Wales during Q1 2025. The Scottish Medicines Consortium (SMC) also accepted PEDMARQSI® in May 2025.

Managing the Norgine licensing agreement and royalty collection

This activity centers on managing the partnership with Norgine for commercialization in the EU, Australia, and New Zealand. While this generated significant upfront cash, the royalty stream is a key component of future revenue projections.

The financial structure of the Norgine deal includes:

• Upfront consideration received: €40 million.
• Potential additional commercial and regulatory milestone payments: Up to €210 million.
• Royalty structure: Double-digit tiered royalties on net sales up to the mid-20s percentage.

To be fair, the absence of licensing revenue in Q3 2025 compared to the prior year meant total revenue dipped, even as product sales grew.

Ongoing clinical development (e.g., Japan trial) and data generation

Generating new data, especially internationally, is crucial for expanding the label and potential partnering opportunities. The investigator-initiated Phase 2/3 STS-J01 clinical trial in Japan delivered positive topline results in December 2025.

Key data points from the Japan trial:

The trial involved 27 patients in the primary cohort (ages 3-18 years) and 6 in exploratory cohorts. Fennec Pharmaceuticals plans to pursue registration in Japan based on these favorable outcomes.

Refining the targeted sales strategy for AYA and pediatric segments

This activity is about optimizing the commercial spend to maximize penetration in the most valuable patient populations. The AYA segment is a particular focus, representing an estimated $200+ million addressable market annually in the U.S. and Europe, with over 20,000+ patients receiving cisplatin.

The execution is paying off; the company achieved its first profitable quarter from operations in Q3 2025. This financial milestone suggests the refined, data-driven approach to account targeting is translating directly to the bottom line.

Finance: draft 13-week cash view by Friday.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Key Resources

You're looking at the core assets Fennec Pharmaceuticals Inc. (FENC) relies on to drive its commercial stage business, centered around its sole approved product. These resources are what make the value proposition possible.

PEDMARK (sodium thiosulfate injection) drug product is the primary tangible asset. This product received U.S. Food and Drug Administration (FDA) approval in September 2022. It is indicated to reduce the risk of ototoxicity associated with cisplatin in pediatric patients one month of age and older with localized, non-metastatic solid tumors. For European markets, it is approved as PEDMARQSI, receiving European Commission approval in June 2023 and U.K. approval in October 2023. The commercial performance of this asset is showing momentum; for the third quarter of 2025, Fennec Pharmaceuticals Inc. recorded net product sales of approximately $12.5 million.

The financial foundation supporting the commercialization efforts as of late 2025 is anchored by its balance sheet strength. As of September 30, 2025, Fennec Pharmaceuticals Inc. reported cash and equivalents of $21.9 million. This followed a period where the company achieved its first profitable quarter from operations, with Q3 2025 Selling and Marketing Expenses at $5.2 million and General and Administrative (G&A) Expenses at $6.8 million.

Intellectual property provides a critical, time-bound barrier to entry for competitors. Fennec Pharmaceuticals Inc. has built significant protection around PEDMARK, which includes Orphan Drug Exclusivity in the U.S..

• Orphan Drug Exclusivity in the U.S. began on September 20, 2022, and continues until September 20, 2029.
• Fennec Pharmaceuticals Inc. has patents providing protection for PEDMARK until 2039 in both the U.S. and internationally.
• Specifically, the '728 and '984 patents are noted to expire in 2039.
• The company has six FDA Orange Book listings providing U.S. patent protection for PEDMARK® until 2039.

The proprietary clinical data from the pivotal Phase 3 trials are the scientific foundation for the regulatory approvals and commercial claims. These data compare the PEDMARK plus cisplatin regimen against cisplatin-based regimens alone.

The data from SIOPEL 6 showed a relative risk of 0.56 for hearing loss when STS (sodium thiosulfate) was added.

The commercialization effort relies on a Specialized U.S. sales force focused on oncology centers. While a specific headcount number isn't public, this resource is actively driving adoption, as Fennec Pharmaceuticals Inc. noted that one of the largest oncology provider networks added PEDMARK to its formulary, leading to accelerated adoption across numerous accounts within that network in Q3 2025. This reflects the asset's role in reshaping the standard of care for patients receiving cisplatin-based treatment.

Finance: review Q4 2025 operating expense projections against current cash position by next Tuesday.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Value Propositions

You're looking at the core reason Fennec Pharmaceuticals Inc. exists: the unique value delivered by PEDMARK® (sodium thiosulfate injection). This isn't just another drug; it's the first solution to a devastating, common side effect of life-saving cancer treatment.

First and only FDA-approved therapy to reduce cisplatin-induced ototoxicity

PEDMARK® holds the distinction of being the first and only therapy approved by the U.S. Food and Drug Administration (FDA) specifically indicated to reduce the risk of ototoxicity (hearing loss) linked to cisplatin in pediatric patients aged 1 month and older with localized, non-metastatic, solid tumors. This exclusivity is a massive part of the value proposition, as it means no other approved product offers this targeted protection.

Addresses a critical, previously unmet medical need in childhood cancer

Before PEDMARK® received FDA approval in September 2022, there were no preventative agents available for this hearing loss. Cisplatin chemotherapy is vital for treating solid tumors, but the side effect is severe: permanent, irreversible hearing loss affects between 60 percent and 90 percent of children treated, depending on the chemotherapy dose and duration. Annually, more than 10,000 children in the U.S. and Europe may receive this platinum-based chemotherapy. The potential market need is underscored by the fact that approximately 500,000 patients in the U.S. are diagnosed annually with cancers potentially treated with platinum-based chemotherapy.

Preserves hearing and improves quality of life for pediatric cancer patients

The value here is directly measured in preserved function. Data from the investigator-initiated Phase 2/3 STS-J01 clinical trial in Japan showed significant improvement in hearing preservation when PEDMARK® was added to cisplatin treatment. The drug helps children avoid lifelong reliance on hearing aids. Here's the quick math on the hearing loss incidence reduction:

What this estimate hides is the profound impact on a child's development; also, the drug showed no interference with the chemotherapy's effectiveness, evidenced by an approximate 95 percent clinical response rate in that trial. Fennec Pharmaceuticals Inc. reported net product sales of $9.7 million for the second quarter of 2025 and $12.5M for the third quarter of 2025, showing growing adoption of this value.

Recommended by NCCN guidelines for AYA and pediatric patients

Clinical recognition solidifies the value proposition. The National Comprehensive Cancer Network (NCCN) has updated its Clinical Practice Guidelines in Oncology for Adolescent and Young Adult (AYA) Oncology to include PEDMARK®. Specifically, the recommendation for the AYA population carries a 2A endorsement. This level of guidance helps drive adoption in treatment protocols across the U.S.

Unique formulation in single-dose, ready-to-use vials

The physical delivery of the product is part of the value for the provider. PEDMARK® is supplied as a unique formulation of sodium thiosulfate in single-dose, ready-to-use vials intended for intravenous use. This ready-to-use format simplifies administration in the complex oncology setting, which is crucial since the FDA has directed that PEDMARK® is not substitutable with other sodium thiosulfate products.

You can see the commercial traction building with the Q3 2025 revenue hitting $12.5M. Finance: draft 13-week cash view by Friday.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Customer Relationships

You're looking at how Fennec Pharmaceuticals Inc. builds and maintains its connections with the healthcare ecosystem supporting PEDMARK. It's not just about selling a drug; it's about supporting a complex care pathway to prevent ototoxicity (hearing loss) from cisplatin chemotherapy.

High-touch support via the Fennec HEARS™ patient program

Fennec Pharmaceuticals Inc. heavily relies on its revamped Fennec HEARS™ patient support program. This program is central to the customer relationship, ensuring a seamless, supportive experience for both healthcare providers (HCPs) and the Adolescent and Young Adult (AYA) cancer patients. The focus here is on improving adherence by removing friction points in the patient journey.

The program has seen positive momentum, specifically noting quarter-over-quarter growth in enrollment in the Fennec HEARS™ and Specialty Pharmacy Program as of the second quarter of 2025. This growth is directly tied to the program's enhanced offerings.

• Strengthened HCP and patient services.
• Expanded payer reimbursement support.
• Streamlined access to home nursing resources.

Direct engagement with oncologists and institutional pharmacy directors

The commercial strategy centers on deep engagement within key accounts. Fennec Pharmaceuticals Inc. has been executing a targeted sales strategy that has yielded measurable results in account acquisition and retention. This direct approach is what drives product adoption in both academic and community settings.

In the second quarter of 2025, the company achieved double digit new accounts, showing notable quarter-over-quarter growth across both large community practices and academic centers. This momentum is supported by the fact that PEDMARK has been added to the formulary of a large national oncology group, which includes numerous community-based oncology practices across the U.S. The AYA market, which Fennec Pharmaceuticals Inc. estimates at approximately 20,000 individuals between ages 15 and 39 annually, is a key target for this direct engagement.

The financial investment underpinning this direct engagement is substantial, with Selling and Marketing Expenses recorded at $4.4 million in the second quarter of 2025.

Dedicated payer reimbursement support and streamlined access

Access is a critical relationship component in specialty pharma. Fennec Pharmaceuticals Inc. has made expanded payer reimbursement support a key feature of its patient support offerings. This effort directly supports the treating physician and patient by simplifying the financial hurdles associated with accessing PEDMARK.

The company's focus on securing access is reflected in the overall commercial success, with Net Product Sales reaching $9.7 million in the second quarter of 2025, a 33% increase year-over-year. This growth is explicitly attributed to expanded focus and growth in the AYA population and the successful growth and retention of existing accounts.

Educational outreach to increase awareness of ototoxicity prevention

Building the relationship involves educating the broader care team on the unmet need for ototoxicity prevention. Fennec Pharmaceuticals Inc. has focused on increasing awareness of the need for PEDMARK by hosting multiple advisory boards with leading academic centers and participating in notable conferences. Furthermore, efforts are underway to educate beyond oncologists, involving ENTs, audiologists, nurses, and pharmacists.

A concrete example of this educational success is the inclusion of PEDMARK in the National Community Oncology Drug Administration's (NCODA) Positive Quality Intervention (PQI). This PQI provides clinical data and guidance to multidisciplinary oncology care teams on the use, administration, and timing of PEDMARK.

The effectiveness of the product itself, which underpins the educational message, is compelling. The Japan trial showed hearing loss rates of only 24% (ASHA criteria) and 16% (Brock grade) with PEDMARK, compared to historical cisplatin-only rates of 56% and 63%, respectively.

Building long-term adherence with existing accounts

The relationship is sustained through demonstrated value and execution, leading to account retention. The company highlights the successful growth and retention of existing accounts within the AYA population as a driver of its sequential net product sales growth of 10% in the second quarter of 2025 over the first quarter of 2025, where sales were $8.8 million.

This long-term view is supported by the company's patent protection for PEDMARK until 2039 in both the U.S. and internationally, providing a stable foundation for long-term relationships with prescribers and institutions.

Here's a quick look at the financial context supporting these commercial relationship efforts as of mid-2025:

Finance: draft 13-week cash view by Friday.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Channels

You're looking at how Fennec Pharmaceuticals Inc. gets PEDMARK® to the oncology centers that need it, and honestly, it's a focused, multi-pronged approach that's clearly gaining traction in 2025.

U.S. direct sales force targeting oncology centers

The core of the U.S. channel relies on a direct sales force that you can see reflected in the operating expenses. For the first quarter of 2025, Selling and Marketing Expenses were reported at $2.9 million, which then increased to $4.4 million in the second quarter of 2025, showing an intensification of field execution. This team uses a segmentation model and data-driven target lists to enhance field execution, which yielded measurable impact, driving the addition of multiple new accounts across both academic and community providers in Q1 2025. By Q2 2025, this resulted in double-digit new accounts.

This direct effort is clearly translating to sales, as the company achieved Q2 2025 Total Net Revenues of $9.7 million, up 33% over Q2 2024. The latest reported figure, Q3 2025 Net Product Sales, hit approximately $12.5 million.

Specialty pharmacy network for product fulfillment

Fennec Pharmaceuticals Inc. significantly strengthened its Fennec HEARS™ and Specialty Pharmacy Offering in 2025. This revamped patient support program is designed to smooth out the fulfillment process by offering:

• Strengthened HCP and patient services.
• Expanded payer reimbursement support.
• Streamlined access to home nursing resources.

The growth in enrollment in this program was noted in the second quarter of 2025, which is a key indicator of the channel's operational success in getting the product to the patient after the order is placed.

Licensing partner Norgine for Europe, U.K., Australia, and New Zealand

For ex-U.S. markets, the channel is managed through the exclusive licensing agreement with Norgine Pharmaceuticals Ltd.. This partnership has seen concrete commercial milestones achieved in 2025:

The success in these launches is part of the global momentum, with management noting Norgine's ex-U.S. PEDMARQSI® launches as a key factor in the company's outlook.

Direct-to-provider ordering and institutional purchasing channels

The growth in the U.S. channel is explicitly tied to adoption within specific institutional settings. The commercial team's strategy drove growth in both large community practices and academic centers. One notable success in 2025 was the accelerated adoption across a major oncology provider network after they added PEDMARK® to its formulary. This indicates a successful institutional purchasing channel where formulary inclusion is a critical step for sustained volume.

The overall U.S. sales performance supports this, as net product sales for the first nine months of 2025 have already surpassed the total net product sales of $29.6 million for the entire 2024 fiscal year.

Medical science liaisons (MSLs) for clinical education

Clinical education is a key supporting channel, utilizing Medical Science Liaisons (MSLs) as part of the U.S. field force to educate the medical communities and patients about cisplatin-induced ototoxicity and the use of PEDMARK®. Furthermore, educational guidance is being disseminated through formal documents:

• NCODA PQI (Positive Quality Intervention) Issued for PEDMARK®.
• Aims to provide pharmacists, nurses, and oncologists with clinical data and guidance.
• Focuses on use, administration, and timing to prevent platinum-induced ototoxicity in pediatric patients and the AYA population.

This educational push supports the field force's direct engagement and helps drive the adoption mentioned in the community and academic centers.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Customer Segments

You're looking at the core groups Fennec Pharmaceuticals Inc. (FENC) targets with PEDMARK^®, the only FDA-approved therapy to reduce the risk of cisplatin-induced ototoxicity (CIO). The customer segments are defined by the patient population receiving the chemotherapy and the institutions/payers that facilitate and fund that care.

Pediatric cancer patients (1 month+) receiving cisplatin chemotherapy

This segment represents the initial, FDA-approved indication for PEDMARK^®. The patient pool is defined by localized, non-metastatic solid tumors requiring cisplatin. The risk of hearing loss in this group is substantial, historically ranging from 40% to 60% in pediatric cancer patients. You see the protective effect clearly in the data from the investigator-initiated trial in Japan, where hearing loss rates dropped to 16% (Brock grade) and 24% (ASHA criteria) when PEDMARK^® was used alongside cisplatin. The overall tumor response rate remained approximately 95%, confirming no interference with the chemotherapy's anti-cancer effects.

Adolescent and Young Adult (AYA) cancer patients on cisplatin regimens

This is a significant growth vector for Fennec Pharmaceuticals Inc., as noted by management. The AYA segment (ages 15-39) is a high-value target, with over 20,000 patients annually in the U.S. and Europe receiving cisplatin-based regimens. This market is estimated to represent a $200+ million addressable opportunity. The National Comprehensive Cancer Network (NCCN) gives PEDMARK^® a 2A endorsement for this population, signaling strong clinical guidance for adoption. Fennec Pharmaceuticals Inc. reported surpassing greater than 90% reimbursement for PEDMARK^® in the AYA population as of Q3 2024, which is crucial for access in this group, often treated in community settings.

Academic and large community oncology treatment centers

These centers are the primary points of care where cisplatin is administered and where prescribing decisions for supportive care are made. Fennec Pharmaceuticals Inc. has focused its commercial execution on Tier 1-5 accounts, which collectively account for over 60% of U.S. cisplatin prescriptions. The company's Q1 2025 results showed growth across both academic and community providers, with early wins cited at institutions like Tampa General Hospital, Rady Children's Hospital, and Huntsman Cancer Institute. The European launch of PEDMARQSI^®, handled by Norgine, also saw commercial availability in Germany in February 2025, and in the U.K. and Wales during Q1 2025.

Institutional payers and government healthcare programs (CMS)

Market acceptance and sales depend heavily on securing coverage and adequate reimbursement from these entities. The company has actively worked to strengthen its Fennec HEARS™ patient support program to include expanded payer reimbursement support. The success in the AYA segment is directly tied to payer coverage, as evidenced by the reported 90% reimbursement achievement in Q3 2024. Uncertainty related to third-party coverage and reimbursement is a noted risk in filings, making this segment critical for revenue realization. The company's strong gross profit margins, reported at 93%, suggest favorable unit economics once access is secured.

Oncologists and pediatric oncologists who defintely prescribe cisplatin

These are the prescribers whose behavior Fennec Pharmaceuticals Inc. seeks to influence through education and support programs like Fennec HEARS™. The total addressable population is large; approximately 500,000 patients annually in the U.S. are diagnosed with cancers that could be treated with a platinum-based chemotherapy. The target prescribers are those managing the high-volume cisplatin patients in the pediatric and AYA segments. The company's recent financial performance reflects engagement with these prescribers, with Q3 2025 net product sales reaching a record high of approximately $12.5 million, up from $7.0 million in Q3 2024, showing four consecutive quarters of double-digit growth.

Here's a quick look at the patient incidence and the demonstrated protective effect:

The commercial focus is clearly on driving adoption within these defined patient pathways, which is translating to financial results, with the company reporting its first profitable quarter from operations as of Q3 2025. The company's market capitalization was $296M as of November 18, 2025, with a stock price of $8.66.

Finance: draft 13-week cash view by Friday.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Cost Structure

You're looking at the expenses driving Fennec Pharmaceuticals Inc.'s commercial stage, especially as they push PEDMARK® adoption in the U.S. The cost structure is heavily weighted toward commercialization and maintaining the regulatory foundation for their product.

The primary cost drivers for Fennec Pharmaceuticals Inc. in the third quarter of 2025 reflect the ongoing investment required to support the U.S. launch and maintenance of PEDMARK®. Here's a snapshot of the key figures from the period ended September 30, 2025.

That Selling and Marketing spend of $5.2 million in Q3 2025 shows the commitment to the U.S. launch; it was up from $4.4 million the prior quarter and $4.6 million year-over-year. That's where the money goes when you're building out a specialized commercial presence.

General and Administrative (G&A) costs were $6.8 million for the quarter. This line item bundles necessary overhead, including the costs associated with protecting and maintaining your intellectual property portfolio. What this estimate hides is the exact split between IP defense, routine overhead, and executive functions.

Manufacturing and Cost of Goods Sold (COGS) for PEDMARK are a direct cost against the $12.5 million in Q3 2025 net product sales. While the specific COGS number isn't broken out in the latest release, it's the variable cost directly tied to producing the drug that generated those sales. The company is focused on commercialization, so these costs scale with adoption.

Clinical development and regulatory maintenance costs are ongoing expenses necessary to support the product post-approval and explore new territories. You see this reflected in the overall operating expenses, even as the focus shifts to commercial execution. For instance, preliminary results from the investigator-initiated clinical trial (STS-J01) evaluating PEDMARK® in Japan are expected in the fourth quarter of 2025, which implies continued associated costs.

Personnel and compensation for the specialized commercial team are embedded within the Selling and Marketing and G&A figures. You can see how compensation components fluctuate:

• G&A expenses in Q1 2025 increased quarter-over-quarter primarily due to non-cash stock-based compensation.
• Looking back at fiscal 2023, non-cash expenses associated with equity remuneration increased by $1.4 million over 2022.
• Also in fiscal 2023, payroll and benefits related expenses rose by $1.1 million compared to 2022.
• The cash position as of September 30, 2025, stood at $21.9 million, which must cover these operating outlays.

Finance: draft 13-week cash view by Friday.

Fennec Pharmaceuticals Inc. (FENC) - Canvas Business Model: Revenue Streams

Fennec Pharmaceuticals Inc.'s revenue streams as of late 2025 are heavily anchored in the commercial success of its U.S. product, PEDMARK, supplemented by significant non-recurring and recurring income from its international partnership.

The primary driver for current operational revenue is the direct sale of the U.S. product, PEDMARK. You saw the latest quarterly performance:

• Net product sales of PEDMARK in the U.S. for Q3 2025 reached approximately $12.5 million.
• This Q3 2025 figure represented a 79% year-over-year growth for the quarter.

Looking at the cumulative performance for the year through the third quarter, the total net product sales were approximately $31.0 million for the first nine months of 2025. This total is derived from the reported quarterly sales:

• Q1 2025 Net Product Sales: approximately $8.8 million.
• Q2 2025 Net Product Sales: approximately $9.7 million.
• Q3 2025 Net Product Sales: approximately $12.5 million.

The second major component of the revenue stream comes from the exclusive licensing agreement with Norgine for PEDMARQSI in Europe, Australia, and New Zealand. This deal provides both immediate cash and future potential earnings.

The upfront and milestone payments structure is quite substantial:

Also, Fennec Pharmaceuticals Inc. is set to receive double-digit tiered royalties on PEDMARQSI net sales from Norgine in those licensed territories, with the tiers going up to the mid-twenties percent. This is recurring revenue tied directly to Norgine's commercial success in Europe, Australia, and New Zealand.

Finally, there is potential for future licensing revenue tied to ongoing clinical work outside the Norgine territories. Specifically, you're watching the results from Japan:

• Preliminary results from the investigator-initiated clinical trial (STS-J01) evaluating PEDMARK in Japan were expected in Q4 2025.

If those results are positive, it opens the door for potential future licensing revenue from new territories like Japan, which would represent another distinct revenue stream for Fennec Pharmaceuticals Inc.