Maxim ups Fennec PT to $15 on PEDMARK approval

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Maxim Group raised its price target for Fennec Pharmaceuticals (NASDAQ:FENC) to $15 from $10, and maintained its “buy” rating, after FDA approval of PEDMARK, its formulation of sodium thiosulfate for the prevention of cisplatin-induced hearing loss in pediatric patients aged one month and older.

Shares of Fennec closed at $7.46 on Sept. 28.

A marketing authorization application in Europe is currently under review, with a commercial launch in the U.S. expected in the fourth quarter of 2022.

Analyst Jason McCarthy, Ph.D., writes that the approval also triggered a $20-million investment to Fennec from Petrichor Healthcare Capital Management.

Fennec reported $14.9-million in cash at the end of the second quarter of 2022. “Combined, the company should have sufficient capital for PEDMARK’s launch and could potentially be profitable in late 2023 to early 2024,” Dr. McCarthy said.

He also noted two other key positive points. First is the label, which mentions that PEDMARK should not be substituted with any other sodium thiosulfate product. Second is the IP, which goes to 2039. “Both of these factors should bolster commercialization,” Dr. McCarthy said.