Fennec Pharmaceuticals Raises $40M to Expand Hearing Loss Prevention Efforts

NEW YORK, NY – November 17, 2025 – Fennec Pharmaceuticals Inc. has successfully completed a public offering, raising approximately $40.25 million to support the commercialization of its hearing loss prevention drug and strengthen its financial position. The company, focused on mitigating ototoxicity in cancer patients undergoing cisplatin-based chemotherapy, intends to use the proceeds to repurchase debt and fund ongoing operations.

Funding a Critical Need

The offering, which included 5,366,667 common shares priced at $7.50 per share, demonstrates investor confidence in Fennec’s mission to address a significant, yet often overlooked, side effect of cancer treatment. Cisplatin, a widely used chemotherapy drug, can cause irreversible hearing loss, severely impacting a patient’s quality of life. PEDMARK (PEDMARQSI in Europe), Fennec’s lead product, has received FDA and European Commission approval and is designed to reduce this risk.

“The impact of ototoxicity on cancer patients is profound,” said one industry analyst. “Hearing loss can lead to social isolation, depression, and reduced cognitive function. Any effective intervention that can prevent this is a valuable addition to the treatment landscape.”

Fennec's approach offers a preventative measure to a well-known but devastating side effect, giving patients undergoing rigorous cancer treatments a better chance at retaining their hearing. The availability of a drug targeting this specific issue fills a critical gap in supportive oncology care.

Navigating Financial Realities

While the company’s stock has seen significant gains in the past year, with a 97% return, Fennec has historically operated at a loss. The funding from this offering is strategically aimed at addressing existing debt and providing working capital to support continued commercialization efforts. According to recent filings, the company boasts a healthy current ratio of 4.69, indicating strong liquidity, but remains unprofitable as of its most recent quarterly earnings report.

“This offering isn’t just about growth; it’s about financial stability,” explained one investor familiar with the company. “Fennec needs to demonstrate a clear path to profitability to sustain its operations and capitalize on the potential of PEDMARK.”

The funds will allow the company to prioritize debt repayment, reduce financial risk, and invest in marketing and sales initiatives to drive adoption of PEDMARK/PEDMARQSI. This strategic use of capital could prove crucial for long-term financial health and investor confidence. While the offering does dilute existing shareholder value, the potential benefits of increased financial stability and expanded commercialization are considered significant.

European Expansion and Strategic Partnerships

A key driver of Fennec’s growth strategy is its exclusive licensing agreement with Norgine Pharmaceuticals, a leading European specialist pharmaceutical company. Norgine is responsible for commercializing PEDMARQSI in Europe, the U.K., Australia, and New Zealand. PEDMARQSI is currently commercially available in the U.K. and Germany, with plans for further expansion across Europe.

“The partnership with Norgine is transformative for Fennec,” noted a pharmaceutical industry consultant. “It provides access to established distribution channels, regulatory expertise, and a strong commercial presence in key European markets.”

The agreement is structured to allow Fennec to benefit from Norgine’s established infrastructure and expertise, while retaining control over the development and manufacturing of PEDMARQSI. This collaborative approach is expected to accelerate market penetration and drive revenue growth in Europe. The licensing agreement also provides a crucial element of data and market protection, with ten years of exclusivity in Europe and Orphan Drug Exclusivity in the U.S., bolstered by patent protection extending until 2039 in both regions.

“Expanding into the European market is a pivotal step for Fennec,” a source close to the company explained. “It diversifies revenue streams and positions the company as a global leader in ototoxicity prevention.”

Furthermore, this strategic partnership is not only expanding the global reach of the product but also reducing the financial burden and risk associated with independently launching and maintaining commercial operations in these new territories. It is a classic example of leveraging the strengths of a partner to achieve mutually beneficial outcomes.