Fennec Pharmaceuticals Inc. (NASDAQ:FENC) Q3 2023 Earnings Call Transcript

Chase Knickerbocker: Yeah. And then if we kind of dig in a little bit on the Europe pricing there, is greater than a 50% decline from U.S. net price the right way to think about it, or should I maybe be thinking about that a little bit differently? And then also a little bit of color on kind of inpatient versus outpatient usage in the United States, maybe percentage of sales between both sites of service, and then kind of how the prior authorizations have been on the outpatient side from a coverage perspective?

Adrian Haigh: Okay. So, [to your first question] (ph), Europe pricing, yes, based on where we are with Germany, significantly more than 50% — sorry, closer to 100% of the U.S. price will be the initial price in Germany, and then we subject to negotiation. What I expect to see in Europe is a request for some kind of pricing cap. So, what came out of the discussions with the — while we were negotiating the net price in Germany was the high cost of a 17-year-old testicular cancer patient, where they said it will be close to €1 million. So, we can expect that they won’t be covering €1 million, so we’ll have to have some kind of cap. And I think most European health authorities will expect that. But I think in terms of pricing, we’re looking at something around 70% of the U.S. price, if I’m to look at an average.

With the focus of — turning the focus to the AYA population, if you just look at the patient numbers, we talk about in the U.S., a 3,500 pediatric population, that’s patients who have localized disease that are now treated with cisplatin. If you look at the patient numbers in the AYA population, just taking one cancer, there are 3,500 testicular cancer patients in the 15- to 39-year age group in the U.S. And if you add all the other tumor types that are likely to be treated with cisplatin, you’re talking about 30,000 patients. So, a ten-fold increase in the number of potential patients. And of course, most of these patients are treated in the community, and it’s ASP-plus. So, as I said, we have just started our sales team focusing on this population and early results have been very encouraging.

The sales force are reporting that this is a significant unmet medical need and there’s positive reaction from the community.

Chase Knickerbocker: Thanks for the question, guys.

Operator: One moment for our next question. Our next question comes from Naureen Quibria with Capital One Securities. Your line is open.

Naureen Quibria: Hi, good morning. Thanks for taking my question, and congrats on the quarter. I guess I’ll start with very simple just in terms of you’re looking at actual sales numbers and you’re seeing progress there. But just out of curiosity, what kind of metrics are you personally tracking over time to gauge your progress? Is it just repeat orders? Just some specifics would help.

Rosty Raykov: Hi, Naureen, maybe I can start it and send it over to Robert and Adrian as well. In general, what we’re looking for, obviously, our number one priority is to get the business to breakeven. So, we’re almost there from that perspective. In terms of — on the sales side, we absolutely have specific — based on the population discussed both in the pediatric and AYA setting going forward, the sales force would be very well incentivized to perform in those populations. And obviously, we’re looking really to brand the business going forward. I don’t know, Robert or Adrian, if you’d like to add anything else?

Adrian Haigh: Yeah, we have a number of metrics. We have formulary committees, one. We have repeat — orders and repeat orders from those centers. We are — and ultimately, obviously, it’s vials sold and revenue.

Naureen Quibria: Got it. Thank you. And then…

Rosty Raykov: And they’re based — sorry, let me just add. And they’re based on the individual performing in their territory and not an overall team goal.