Adherex Technologies (NASDAQ:FENC) Announces Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Fennec beat quarterly estimates: EPS was $0.12 versus the $0.10 consensus, while revenue of $19.61 million topped estimates of $18.87 million.
• Commercial momentum and cash generation strengthened: Product sales rose 56% year over year to $19.4 million, adjusted EBITDA reached a record $5.8 million, and the company generated nearly $7 million in operating cash flow. It ended the quarter with $48.7 million in cash and no debt.
• Expansion opportunities remain in development: New sales territories and account wins are broadening access to PEDMARK, while studies are evaluating its use in adult and metastatic testicular cancer; management said future guidance changes depend on forthcoming evidence.

Adherex Technologies (NASDAQ:FENC - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.02, FiscalAI reports. The business had revenue of $19.61 million during the quarter, compared to analyst estimates of $18.87 million. Adherex Technologies had a negative net margin of 6.09% and a negative return on equity of 5.71%.

Here are the key takeaways from Adherex Technologies' conference call:

• Revenue and demand accelerated: Q3 net product sales rose 56% year over year to $19.4 million, the company’s best commercial quarter. Fennec HEARS enrollments increased 23% and completed infusions rose 58% sequentially, while record patient and infusion carryover and a strong October supported management’s confidence in Q4.
• Profitability and cash generation improved: Adjusted EBITDA reached a record $5.8 million, up from $2.0 million a year earlier, and the company generated nearly $7 million in cash from operations. Fennec reported $48.7 million in cash, no debt, and Q3 EPS of $0.12.
• Commercial investments are expanding access: Management said new sales territories are boosting field productivity, with uptake in community oncology and a formulary win at a large Midwestern academic center. Newly available GPO data is helping the team identify potential patients and add or expand accounts.
• Broader patient populations remain an opportunity, but evidence is still developing: Investigator-sponsored studies are evaluating PEDMARK in adult and metastatic testicular cancer patients, with interim City of Hope data expected in January. Management said any potential change to adult NCCN guidance depends on the forthcoming evidence and gave no timing for a Japan licensing deal.

Adherex Technologies Price Performance

FENC traded up $0.19 during trading on Thursday, hitting $10.83. 228,299 shares of the stock traded hands, compared to its average volume of 199,564. The firm has a market capitalization of $381.29 million, a P/E ratio of -83.28 and a beta of 1.29. The firm has a 50-day moving average of $10.69 and a 200 day moving average of $9.33. Adherex Technologies has a 12-month low of $5.65 and a 12-month high of $13.25.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on FENC shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Adherex Technologies in a research report on Thursday, October 15th. B. Riley Financial restated a "buy" rating and set a $18.00 target price (up from $16.00) on shares of Adherex Technologies in a research report on Wednesday, August 12th. HC Wainwright restated a "buy" rating and issued a $16.00 target price on shares of Adherex Technologies in a research note on Wednesday, September 9th. Finally, Wedbush raised their price target on Adherex Technologies from $13.00 to $16.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $17.00.

Insider Activity

In other news, CFO Robert Andrade sold 75,000 shares of Adherex Technologies stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $11.78, for a total value of $883,500.00. Following the sale, the chief financial officer directly owned 217,675 shares in the company, valued at approximately $2,564,211.50. This trade represents a 25.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pierre Sargis Sayad sold 12,000 shares of the business's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $12.18, for a total transaction of $146,160.00. Following the transaction, the insider directly owned 9,519 shares in the company, valued at approximately $115,941.42. The trade was a 55.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 10.73% of the stock is owned by company insiders.

About Adherex Technologies

Adherex Technologies was a biotechnology company focused on developing treatments for cancer. In 2014, the company changed its name to Fennec Pharmaceuticals Inc.; Fennec later adopted the Nasdaq ticker FENC. Fennec is a commercial-stage biopharmaceutical company focused on therapies that address complications of cancer treatment. Its principal product is PEDMARK, a sodium thiosulfate injection approved in the United States to reduce the risk of cisplatin-related hearing damage in certain pediatric patients with cancer.

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