Fennec Pharmaceuticals Inc 10-Q for FY2026 Q3

Fennec Pharmaceuticals Inc. (FENC)

10-Q 2026-11-12 For: 2026-09-30

Added on November 13, 2026

About this 10-Q

Fennec Pharmaceuticals Inc filed this 10-Q on November 12, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Fennec's nine-month PEDMARK sales rose $20,832, or 67%, to $51,697, while net income reached $6,814 versus a $4,954 loss. The Cipla settlement bars generic U.S. entry until September 1, 2033, or earlier under certain specified circumstances. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $19.61M; up 57.3% from $12.46M a year earlier
Net income: $4.64M; compared with a net loss of $638K a year earlier
Diluted EPS: $0.12; compared with -$0.02 a year earlier

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British Columbia, Canada	20-0442384
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

PO Box 13628, 68 TW Alexander Drive Research Triangle Park, North Carolina (Address of Principal Executive Offices)	27709 (Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, no par value	FENC	Nasdaq Capital Market

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-Accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☐


	Page
PART I: FINANCIAL INFORMATION	3

Item 1. Condensed Consolidated Financial Statements	3

Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2026, and December 31, 2025	3

Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2026 and 2025	4

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) for the Three and Nine Months Ended September 30, 2026 and 2025	5

Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2026 and 2025	6

Notes to the Condensed Consolidated Financial Statements	7

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3. Quantitative and Qualitative Disclosures about Market Risk	33

Item 4. Controls and Procedures	33


PART II: OTHER INFORMATION	34

Item 1. Legal Proceedings	34

Item 1A. Risk Factors	34

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	34

Item 3. Defaults Upon Senior Securities	34

Item 4. Mine Safety Disclosures	34

Item 5. Other Information	34

Item 6. Exhibits	35

Signatures	36


	September 30,		December 31,
	2026		2025

Assets
Current assets
Cash and cash equivalents	$	48,684	$	36,788
Accounts receivable, net		23,786		23,221
Prepaid expenses		4,948		3,738
Inventory		2,117		1,565
Other current assets		1,416		1,731
Total current assets		80,951		67,043

Non-current assets
Non-current accounts receivable, net		1,952		2,791
Other non-current assets, net of amortization		640		717
Total non-current assets		2,592		3,508
Total assets	$	83,543	$	70,551

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	4,607	$	4,635
Accrued liabilities		5,830		5,635
Contract liability - current		2,807		248
Total current liabilities		13,244		10,518

Long-term liabilities
Contract liability - long-term		21,109		24,561
Total long-term liabilities		21,109		24,561
Total liabilities		34,353		35,079

Commitments and contingencies (Note 6)

Stockholders’ equity:
Common shares, no par value; unlimited shares authorized; 35,215 shares issued and outstanding (2025 ‑34,163)		194,093		189,906
Additional paid-in capital		76,462		73,745
Accumulated deficit		(222,608)		(229,422)
Accumulated other comprehensive income		1,243		1,243
Total stockholders’ equity		49,190		35,472
Total liabilities and stockholders’ equity	$	83,543	$	70,551


	☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2026		2025		2026		2025

Revenue
PEDMARK product sales, net	$	19,425	$	12,462	$	51,697	$	30,865
Other revenue		183		—		893		—
Total revenue		19,608		12,462		52,590		30,865

Operating expenses:
Cost of product sales		838		660		2,129		2,000
Research and development		154		29		321		230
Selling and marketing		10,050		6,513		32,131		14,523
General and administrative		3,912		5,449		11,737		17,840

Total operating expenses		(14,954)		(12,651)		(46,318)		(34,593)
Income/(loss) from operations		4,654		(189)		6,272		(3,728)

Other (expense)/income
Unrealized foreign exchange (loss)/gain		—		(3)		(18)		27
Amortization expense		—		(12)		—		(38)
Unrealized loss on securities		—		—		—		(2)
Interest income		319		152		945		559
Interest expense		(1)		(586)		(11)		(1,772)
Total other income/(expense)		318		(449)		916		(1,226)
Income/(loss) before provision for income taxes		4,972		(638)		7,188		(4,954)
Provision for income taxes		332		—		374		—
Net income/(loss)	$	4,640	$	(638)	$	6,814	$	(4,954)

Basic net income/(loss) per common share	$	0.13	$	(0.02)	$	0.20	$	(0.18)
Diluted net income/(loss) per common share	$	0.12	$	(0.02)	$	0.19	$	(0.18)
Weighted-average number of common shares outstanding basic		35,112		27,889		34,772		27,711
Weighted-average number of common shares outstanding diluted		38,076		27,889		36,679		27,711


								Accumulated
				Additional				Other		Total
	Common Shares			Paid-in		Accumulated		Comprehensive		Stockholders’
	Shares	Amount		Capital		Deficit		Income		Equity

Balance at December 31, 2025	34,163	$	189,906	$	73,745	$	(229,422)	$	1,243	$	35,472
Equity-based compensation	—		—		990		—		—		990
Stock option exercise	264		1,323		—		—		—		1,323
Restricted and performance stock release	114		—		(311)		—		—		(311)
Net income	—		—		—		201		—		201
Balance at March 31, 2026	34,541		191,229		74,424		(229,221)		1,243		37,675
Equity-based compensation	—		—		1,710		—		—		1,710
Employee stock purchase plan	—		—		64		—		—		64
Stock option exercise	319		1,961		—		—		—		1,961
Restricted and performance stock release	174		—		(941)		—		—		(941)
Net income	—		—		—		1,973		—		1,973
Balance at June 30, 2026	35,034		193,190		75,257		(227,248)		1,243		42,442
Equity-based compensation	—		—		1,291		—		—		1,291
Employee stock purchase plan	—		—		64		—		—		64
Stock option exercise	155		903		—		—		—		903
Restricted stock release	26		—		(150)		—		—		(150)
Net income	—		—		—		4,640		—		4,640
Balance at September 30, 2026	35,215	$	194,093	$	76,462	$	(222,608)	$	1,243	$	49,190

								Accumulated
				Additional				Other		Total
	Common Shares			Paid-in		Accumulated		Comprehensive		Stockholders’
	Shares	Amount		Capital		Deficit		Income		Equity
Balance at December 31, 2024	27,527	$	145,608	$	66,958	$	(219,681)	$	1,243	$	(5,872)
Equity-based compensation	—		—		798		—		—		798
Stock option exercise	55		371		—		—		—		371
Restricted stock release	12		—		(12)		—		—		(12)
Net loss	—		—		—		(1,165)		—		(1,165)
Balance at March 31, 2025	27,594		145,979		67,744		(220,846)		1,243		(5,880)
Equity-based compensation	—		—		1,494		—		—		1,494
Stock option exercise	52		186		—		—		—		186
Restricted stock release	87		—		(111)		—		—		(111)
Net loss	—		—		—		(3,152)		—		(3,152)
Balance at June 30, 2025	27,733		146,165		69,127		(223,998)		1,243		(7,463)
Equity-based compensation	—		—		2,219		—		—		2,219
Warrant exercise	9		59		(59)		—		—		—
Stock option exercise	257		1,428		—		—		—		1,428
Restricted stock release	63		—		(38)		—		—		(38)
Net loss	—		—		—		(638)		—		(638)
Balance at September 30, 2025	28,062	$	147,652	$	71,249	$	(224,636)	$	1,243	$	(4,492)



	Chargebacks,		Rebates, Customer
	Discounts for		Fees/Credits
	Prompt pay and		and Co-Pay
In thousands	Other allowances		Assistance		Totals
Balance at December 31, 2025	$	477	$	1,423	$	1,900
Provision related to sales made in:
Current period		577		712		1,289
Prior periods		—		—		—
Payments and customer credits issued		(824)		(1,196)		(2,020)
Balance at March 31, 2026	$	230	$	939	$	1,169
Provision related to sales made in:
Current period		866		210		1,076
Prior periods		—		—		—
Payments and customer credits issued		(980)		(492)		(1,472)
Balance at June 30, 2026	$	116	$	657	$	773
Provision related to sales made in:
Current period		1,531		689		2,220
Prior periods		—		—		—
Payments and customer credits issued		(1,319)		(704)		(2,023)
Balance at September 30, 2026	$	328	$	642	$	970


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Numerator:
Net income/(loss)	$	4,640	$	(638)	$	6,814	$	(4,954)

Denominator:
Weighted-average common shares, basic		35,112		27,889		34,772		27,711
Dilutive effect of stock options		2,855		—		1,827		—
Dilutive effect of restricted share units		80		—		72		—
Dilutive effect of warrants		29		—		8		—
Incremental dilutive shares		2,964		—		1,907		—
Weighted-average common shares, diluted		38,076		27,889		36,679		27,711
Net income/(loss) per share, basic	$	0.13	$	(0.02)	$	0.20	$	(0.18)
Net income/(loss) per share, diluted	$	0.12	$	(0.02)	$	0.19	$	(0.18)


	Diluted Earnings Per Share		Diluted Earnings Per Share
	Three Months Ended September 30,		Nine Months Ended September 30,
	2026	2025	2026	2025
Options to purchase common shares	4,101	5,915	4,946	5,915
Convertible debt to purchase common shares	—	3,761	—	3,761
Restricted share units to purchase common shares	—	419	—	419
Performance share units to purchase common shares	—	244	—	244
Warrants to purchase common shares	—	111	3	111


	Number of		Weighted-Average
Options	Options (thousands)		Exercise Price $USD
Outstanding at December 31, 2025	5,853		$	6.38
Granted	1,640			5.77
Exercised	(264)			5.01
Outstanding at March 31, 2026	7,229			6.29
Granted	160			9.08
Exercised	(319)			6.09
Forfeited	(31)			6.22
Outstanding at June 30, 2026	7,039		$	6.37
Granted	170			11.72
Exercised	(155)			5.86
Forfeited	(98)			6.96
Outstanding at September 30, 2026	6,956		$	6.50


		Valuation
		Assumptions
Black-Scholes Model Assumptions		September 30, 2026
Expected dividend		0.00%
Risk free rate		4.07- 4.44%
Expected volatility		140.87 - 159.22%
Expected life		5.00 - 6.00 years


		Number of
		Restricted Share
RSUs Current Year		Units (thousands)
Outstanding at December 31, 2025		630
Awarded		—
Released		(118)
Forfeited		—
Outstanding at March 31, 2026		512
Awarded		—
Released		(287)
Forfeited		(8)
Outstanding at June 30, 2026		217
Awarded		—
Released		(40)
Forfeited		—
Outstanding at September 30, 2026		177


	Fair Value Measurement at September 30, 2026 and December 31, 2025
	(in thousands)
	Quoted Price in Active
	Market for Identical						Significant Other				Significant
	Instruments						Observable Inputs				Unobservable Inputs
	Level 1						Level 2				Level 3					Total
	2026				2025			2026		2025		2026		2025		2026		2025
Assets
Cash and cash equivalents	$	2,986	⁽¹⁾	$	3,072	⁽¹⁾	$	45,698	$	33,716	$	—	$	—	$	48,684	$	36,788
Processa common shares	$	2	⁽²⁾	$	2	⁽²⁾	$	—	$	—	$	—	$	—	$	2	$	2


		As of			As of
Selected Asset and Liability Data (thousands):		September 30, 2026			December 31, 2025
Cash and equivalents		$	48,684		$	36,788
Other current assets			32,267			30,255
Current liabilities			13,244			10,518
Working capital ⁽¹⁾			67,707			56,525
⁽¹⁾ [Current assets – current liabilities]

Selected Equity:
Common shares and additional paid in capital			270,555			263,651
Accumulated deficit			(222,608)			(229,422)
Stockholders’ equity			49,190			35,472


Selected Cash Flow Data	Nine Months Ended September 30,
(dollars and shares in thousands)	2026		2025
Net cash provided by/(used in) operating activities	$	9,111	$	(6,511)
Net cash provided by financing activities		2,785		1,824
Net cash flow	$	11,896	$	(4,687)


Exhibit No.		Description

31.1		Certification of Chief Executive Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

31.2		Certification of Chief Financial Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

32.1		Certification of Chief Executive Officer and Chief Financial Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

99.1		Press Release for Quarter ended September 30, 2026 (furnished herewith).

101.INS		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101)


	Fennec Pharmaceuticals Inc.

Date: November 12, 2026	By:	/s/ Jeff Hackman
		Jeff Hackman
		Chief Executive Officer
		(principal executive officer)

Date: November 12, 2026	By:	/s/ Robert Andrade
		Robert Andrade
		Chief Financial Officer
		(principal financial and chief accounting officer)


1.	I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2026 of Fennec Pharmaceuticals Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the unaudited interim condensed consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its condensed subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
		(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
		(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	By:	/s/ Jeffrey Hackman
		Jeffrey Hackman
		Chief Executive Officer

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.