Fennec Pharmaceuticals Closes Successful Offering of Common Shares
Fennec Pharmaceuticals Inc. (NASDAQ:FENC), a leader in specialty pharmaceuticals, has proudly announced the successful completion of its latest underwritten registered public offering involving 5,366,667 common shares. This offering, with an attractive public offering price of $7.50 per share, has accompanied the exercise of the underwriters’ option to purchase additional shares, resulting in substantial gross proceeds of approximately $40,250,000.
Strategic Use of Proceeds
The funds generated from this offering are set to play a crucial role in advancing Fennec's business strategies. The company plans to utilize the net proceeds primarily for repaying certain debts and addressing general working capital needs. This strategic use of capital aims not only to strengthen financial health but also to enhance operational capabilities and extend the company's reach in the pharmaceutical sector.
Roles of Underwriters
In this offering, Piper Sandler & Co. and Craig-Hallum Capital Group LLC served as the joint book-running managers, ensuring a seamless process. H.C. Wainwright & Co. led the management team, with Stephens Inc. assisting as co-manager. Their collaborative efforts have contributed significantly to the successful closure of this capital-raising initiative.
About Fennec Pharmaceuticals
Fennec Pharmaceuticals Inc. is dedicated to combatting the effects of ototoxicity in cancer patients undergoing cisplatin-based chemotherapy. The company is making significant strides through its commercialized product, PEDMARK®, aimed at minimizing the risk of platinum-induced hearing loss in patients. This innovative treatment received FDA approval in 2022, along with subsequent approvals from the European Commission and the U.K. in 2023, where it is marketed as PEDMARQSI®.
Partnerships Enhancing Reach
In a notable move to boost its reach, Fennec entered an exclusive licensing agreement with Norgine Pharmaceuticals Ltd. This partnership enables Norgine to commercialize PEDMARQSI® throughout Europe, the U.K., Australia, and New Zealand, ensuring that this life-changing treatment will be available to more patients in need. Currently, PEDMARQSI® is commercially accessible in both the U.K. and Germany.
Intellectual Property and Market Protection
Fennec takes pride in its robust intellectual property portfolio, which secures market advantages for PEDMARK®. With Orphan Drug Exclusivity granted in the U.S. and Pediatric Use Marketing Authorization in Europe, the company benefits from dedicated protection, which includes eight years of data exclusivity plus an additional two years.
Furthermore, Fennec's patents provide robust protection for PEDMARK® until 2039, ensuring the company's innovative work in the pharmaceutical space remains safeguarded from competitors while they continue to develop and expand their offerings.
Frequently Asked Questions
What did Fennec Pharmaceuticals announce recently?
Fennec Pharmaceuticals announced the successful closure of its offering of 5,366,667 common shares, resulting in approximately $40,250,000 in gross proceeds.
How will Fennec use the proceeds from the offering?
The proceeds will be utilized to repay certain debts and meet general working capital requirements, which will support the company’s long-term strategies.
Who managed the public offering?
The offering was managed by Piper Sandler & Co. and Craig-Hallum Capital Group LLC, along with H.C. Wainwright & Co. as lead manager and Stephens Inc. as co-manager.
What is PEDMARK®?
PEDMARK® is a treatment developed by Fennec to reduce the risk of ototoxicity in patients receiving cisplatin-based chemotherapy. It aims to protect patients from hearing loss associated with cancer treatments.
What recent approvals has Fennec received for its products?
Fennec Pharmaceuticals received FDA approval for PEDMARK® in 2022 and has since secured approvals from the European Commission and the U.K. for its related product, PEDMARQSI®.
