Fennec (FENC) Signs Licensing Deal With Norgine, Stock Up
Fennec Pharmaceuticals Inc. FENC announced that it has entered into an exclusive licensing deal with Norgine, a European specialist pharmaceutical company, to develop and commercialize its only marketed product, Pedmark/Pedmarqsi (sodium thiosulfate injection), in EU, Australia and New Zealand.
Fennec initially received FDA approval for Pedmark in 2022, granting marketing permission in the U.S. market as the first and only treatment to reduce the risk of ototoxicity (hearing loss) associated with cisplatin in pediatric patients aged one month and older with localized and non-metastatic solid tumors.
The drug is also currently approved in the EU and the United Kingdom for the same indication as the United States in pediatric patients aged one month to 18 years under the brand name Pedmarqsi. The drug currently enjoys market exclusivity in the EU for 10 years.
Per the terms of the licensing agreement, FENC is entitled to receive an upfront payment of €40 million from Norgine in consideration of the transfer of Pedmarqsi marketing rights. The company is eligible to receive up to €210 million in additional commercial and regulatory milestone payments, along with double-digit tiered royalties on net sales of Pedmarqsi in the licensed territories up to the mid-20s, from Norgine.
The deal, in turn, grants Norgine responsibilities for all commercialization activities in the licensed territories. Norgine will also hold all marketing authorizations in the licensed territories.
Fennec’s stock gained 11.4% on Mar 18 as the investors were impressed by the company’s efforts to expand Pedmarqsi’s accessibility to patients across the globe who are at risk of suffering from cisplatin-induced ototoxicity. The influx of cash from the upfront payment, yet to be received, is also expected to strengthen FENC’s balance sheet, which might have also contributed to the rise in share prices.
In the past year, shares of Fennec have gained 37% against the industry’s 4.7% decline.
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The company believes in the drug’s potential to mitigate the risk of permanent and irreversible hearing loss that can occur in pediatric patients treated with cisplatin, thereby addressing a huge unmet medical need. Fennec believes that more than 5,000 pediatric patients annually are eligible for platinum-based chemotherapy in the EU.
The company is also currently looking to pursue the approval of Pedmarqsi in Switzerland, Australia and New Zealand to reduce cisplatin-induced hearing loss in pediatric and non-metastatic solid tumors patients.
Zacks Rank and Other Stocks to Consider
Fennec currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the drug/biotech industry worth mentioning are ADMA Biologics ADMA, FibroGen FGEN and Adicet Bio, Inc. ACET. While ADMA sports a Zacks Rank #1 (Strong Buy), FGEN and ACET carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2024 earnings per share (EPS) has increased from 22 cents to 30 cents. During the same period, the estimate for ADMA’s 2025 EPS has increased from 32 cents to 50 cents. In the past year, shares of ADMA have surged 93.2%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 85%.
In the past 30 days, the Zacks Consensus Estimate for FibroGen’s 2024 loss per share has narrowed from $1.14 to $1.09. During the same period, the estimate for FibroGen’s 2025 loss per share is pegged at 6 cents. In the past year, shares of FGEN have plunged 89.2%.
FGEN beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 2.26%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet’s 2024 loss per share has remained constant at $1.81. In the past year, shares of ACET have plunged 69.6%.
ACET beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 8.36%.
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