FENC

Fennec is a single-product, commercial-stage specialty pharma whose entire equity story rests on PEDMARK/PEDMARQSI, the only FDA- and EU-approved therapy to prevent cisplatin-induced ototoxicity in pediatric patients. The moat is genuine: orphan-drug exclusivity runs to September 20, 2029, six Orange Book patents protect the formulation, and R&D spend of just $250K confirms there is no second act — this is a one-asset company being run for cash, not a pipeline story. The FY2024 Norgine license (≈$43M upfront, up to ≈$230M in milestones plus double-digit-to-mid-twenties royalties across Europe/ANZ) hands Fennec a capital-light international royalty stream that only began flowing as Norgine launched PEDMARQSI in 2025, with more launches guided for 2026 and beyond.

The problem is the numbers are moving the wrong way against a rich price. US-led revenue actually fell 6.1% to $44.6M in FY2025 after a strong 2022→2024 ramp, and the company swung from near-breakeven (-$436K in FY2024) back to a -$9.74M net loss, with operating margin at -14.1% and net margin -21.8%. Operating cash flow deteriorated to -$12.5M (YoY -146%), so against $36.8M of cash the runway is only about three years absent milestone receipts — and management flags that to date Fennec has received no milestone payments from Norgine. Shares outstanding rose 24.9% to 34.5M, so holders are being diluted while the business burns.