Fennec’s New Legs Hit the Ground Running

Research evidence excerpt

Fennec’s New Legs Hit the Ground Running

$ highlighting Pedmark’s utility at ASCO 2026. Management also noted a positive

FYE Dec 2025A 2026E 2027E PMDA meeting in Japan and continues to evaluate partnering opportunities in the

Q1 Mar 8.8A 15.1A 21.3E region. FENC ended 1Q26 with $40.1MM in cash and generated positive operating Previous 13.5E 22.1E

cash flow during the quarter. Management reiterated ~$50MM in 2026 cash OPEX, Q2 Jun 9.7A 15.7E 24.4E

Previous 13.9E 25.0E with >60% expected in 1H26, and noted that while Q2 ending cash is expected

Q3 Sep 12.5A 17.6E 28.3E to be lower than Q1 due to cash collection cycles, cash should grow through the

Previous 16.2E 28.1E remainder of the year. Current cash, together with anticipated Pedmark revenues,

Q4 Dec 13.8A 19.7E 31.3E is expected to fund the business under the current operating plan. Given Pedmark’s

Previous 18.7E 31.2E accelerating commercial momentum, early returns from the expanded field force,

Year* 44.6A 68.1E 105.3E increasing operating leverage, and expanding clinical interest across additional Previous 62.3E 106.5E

tumor types and patient populations, we remain constructive on shares and would

EPS in $ be buyers at current levels. FYE Dec 2025A 2026E 2027E

Q1 Mar (0.04)A 0.01A 0.20E We reiterate our OUTPERFORM rating and maintain our $13 PT. Our PT is derived

Previous (0.04)E 0.11E from a DCF valuation for each of PEDMARK’s indication segments. For the DCF, Q2 Jun (0.11)A (0.05)E 0.27E

Previous (0.03)E 0.18E we account for cash flows through 2040 – utilize a 15% discount rate and do not

Q3 Sep (0.02)A 0.12E 0.36E include a terminal valuation. See our updated valuation summary and financial

Previous 0.02E 0.25E model below.

Q4 Dec (0.17)A 0.17E 0.42E

Previous 0.08E 0.30E

Year* 0.35A 0.24E 1.25E