Mr. Rosty Raykov reports

FENNEC PHARMACEUTICALS ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS AND PROVIDES BUSINESS UPDATE

Fennec Pharmaceuticals Inc. has released its financial results for the third quarter ended Sept. 30, 2023, and has provided a business update.

"We continued to see strong commercial performance with Pedmark in the third quarter demonstrated by net product revenue of $6.5-million representing 96-per-cent quarter-over-quarter growth. Pedmark addresses a significant unmet medical need in the pediatric oncology community and we expect to continue building upon our commercial momentum through expanding the prescriber base and increasing the utilization of the earlier endorsement from the NCCN for Pedmark in the adolescent and young adult (AYA) population," said Rosty Raykov, chief executive officer of Fennec Pharmaceuticals. "Further, we are pleased with the steady progress that we are making preparing for the launch of Pedmarqsi in Europe, including the recent regulatory approval in the U.K. by the MHRA, as we continue to evaluate the best commercial pathway for the company in Europe."

Financial results for the third quarter 2023:

• Net sales: The company recorded net product sales of $6.5-million in the third quarter of 2023 compared with net product sales of $3.3-million in the second quarter of 2023. The company had gross profit of $6.2-million for the third quarter of 2023. The increase in sales reflects strong growth in new patient starts and account adoption.
• Cash position: Cash and cash equivalents were $12.4-million on Sept. 30, 2023. The decrease in cash and cash equivalents between Sept. 30, 2023, and Dec. 31, 2022, is the result of cash outlays for operating expenses related to the promotion and marketing of Pedmark and general and administrative expenses, which were offset by cash inflows primarily from product sales. The company anticipates that its cash, cash equivalents and investment securities as of Sept. 30, 2023, when coupled with Pedmark revenue assumptions, will be sufficient to financed its planned operations for at least the next 12 months.
• Research and development (R&D) expenses: Research and development expenses decreased by $800,000 for the three months ended Sept. 30, 2023, compared with the same period in 2022. The company's research and development activities for the quarter ended Sept. 30, 2023, consisted of costs associated with investigator initiated clinical trials. During the same period in 2022 and prior to approval of Pedmark, manufacturing costs pertaining to Pedmark were allocated to R&D expense in the period incurred and following approval are reflected in inventory.
• Selling and marketing expenses: Selling and marketing expenses include remuneration of the company's sales and marketing employees, dollars spent on marketing campaigns (sponsorships, trade shows, presentations and more), and any activities to support marketing and sales activities. Selling and marketing expenses for the third quarter of 2023 were $3.4-million compared with $2.3-million in the second quarter of 2023 as the company increased marketing in the U.S. and precommercialization activities in Europe.
• General and administrative (G&A) expenses: For the three-month period ended Sept. 30, 2023, G&A expenses decreased by $3.2-million over the same period in 2022. Further, G&A expenses decreased by $1.7-million compared with the second quarter of 2023. The decrease in G&A was primarily because of decreases in non-cash employee remuneration which accounted for $1-million of the decrease over same period in 2022. There was a reduction in legal expenses of $700,000 for the quarter ended Sept. 30, 2023, over the same period in 2022.
• Net loss: Net loss for the quarter ended Sept. 30, 2023, was $1.9-million (seven cents per share), compared with $8.1-million (31 cents per share) for the same period in 2022.

Q3 2023 conference call information

The company will host a conference call today, Nov. 6, at 8:30 a.m. ET, to discuss the company's financial results from the third quarter ended Sept. 30, 2023, and provide a business outlook for the remainder of 2023.

To access the conference call, please register on-line. Upon registration, a dial-in number and unique PIN will be provided to join the call. To access the live webcast link, go to the company's website and proceed to the news and events/event calendar page under the investors and media heading. Please connect to the company's website at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to listen to the webcast. A webcast replay of the conference call will also be archived on the company's website for 30 days.

Financial update

The selected financial data presented below are derived from the company's unaudited condensed consolidated financial statements, which were prepared in accordance with U.S. generally accepted accounting principles. The complete unaudited condensed consolidated financial statements for the period ended Sept. 30, 2023, and management's discussion and analysis of financial condition and results of operations will be available through the SEC and SEDAR websites. All values are presented in thousands unless otherwise noted.

About Fennec Pharmaceuticals Inc.

Fennec Pharmaceuticals is a specialty pharmaceutical company focused on the development and commercialization of Pedmark and Pedmarqsi to reduce the risk of platinum-induced ototoxicity in pediatric patients. Further, Pedmark received FDA (Food and Drug Administration) approval in September, 2022, and European Commission Marketing Authorization in June, 2023, for Pedmarqsi.

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