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Here are 1-2 brief analogies to describe Fortress Biotech (FBIO):

• An "IAC (InterActiveCorp) for biotech ventures," managing a portfolio of diverse drug development programs.
• A "Y Combinator for drug candidates," focused on incubating and actively developing multiple new treatments simultaneously.

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• Cosibelimab: A PD-L1 antibody in development for the treatment of metastatic cutaneous squamous cell carcinoma.
• Zilxi (Minocycline Topical Foam): A topical foam approved for the treatment of rosacea.
• DFD-29 (Minocycline Modified Release Capsules): An oral medication approved for the treatment of rosacea.
• MB-107: A lentiviral gene therapy in clinical development for X-linked severe combined immunodeficiency.

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Fortress Biotech (symbol: FBIO) primarily sells its pharmaceutical products to other companies, specifically major pharmaceutical wholesalers and distributors. These wholesalers then distribute the products to pharmacies, hospitals, and other healthcare providers.

The major customer companies for Fortress Biotech, through its subsidiary Journey Medical Corporation, are:

• McKesson Corporation (Symbol: MCK)
• AmerisourceBergen Corporation (Symbol: ABC)
• Cardinal Health, Inc. (Symbol: CAH)

These three wholesalers collectively accounted for substantially all of Fortress Biotech's product revenues in recent fiscal years, as reported in their SEC filings.

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Lindsay A. Rosenwald, M.D., Chairman, President and Chief Executive Officer

Dr. Rosenwald has served as Chairman, President, and Chief Executive Officer of Fortress Biotech since December 2013, and as a member of its Board of Directors since October 2009. He is a biotechnology entrepreneur with over 25 years of experience, involved in the founding and recapitalization of numerous public and private biotechnology and life sciences companies. From 1991 to 2008, he served as Chairman of Paramount BioCapital, Inc. Dr. Rosenwald is also a co-founder of the healthcare private equity firm, Opus Point Partners. He has created and sold several biotechnology companies, and in 2013, he established Fortress Biotech. Notably, he once acquired a distressed biotech company during a bear market and subsequently sold it for a 500% profit within months.

David Jin, Chief Financial Officer and Head of Corporate Development

Mr. Jin has served as Chief Financial Officer of Fortress Biotech since August 2022 and as Head of Corporate Development since May 2020. He also holds the positions of Interim Chief Financial Officer and Chief Operating Officer of Avenue Therapeutics, which is a Fortress partner company. Prior to joining Fortress, Mr. Jin was part of the investment team in the Private Equity & Real Assets group at Barings, where he focused on control equity and royalty/debt investments in the pharma and biotech sectors, demonstrating experience with private equity-backed companies. He previously served as Director of Corporate Development at Sorrento Therapeutics, where he was involved in various asset/company acquisitions and partnership transactions, and as Vice President of Healthcare Investment Banking at FBR & Co., contributing to over $3.5 billion in biotech financings and transactions. Mr. Jin joined Fortress in 2020 and played a role in the exit of Caelum Biosciences to AstraZeneca.

Michael S. Weiss, Executive Vice Chairman, Strategic Development

Mr. Weiss has served as Executive Vice Chairman, Strategic Development of Fortress Biotech since February 2014. He is also the Executive Chairman of the Board of Directors of Mustang Bio, Inc. and Chairman of the Board of Directors of Checkpoint Therapeutics, Inc. Since December 2011, Mr. Weiss has been Executive Chairman, Chief Executive Officer, and President of TG Therapeutics, Inc. In 1999, he founded Access Oncology, which was acquired by Keryx Biopharmaceuticals in 2004, where he subsequently served as CEO until mid-2009.

George Avgerinos, Ph. D., Senior Vice President, Biologics Operations

Dr. Avgerinos has been Senior Vice President, Biologics Operations since June 2013. He previously worked at AbbVie, Inc., where he held the position of Vice President, HUMIRA® Manufacturing Sciences and External Partnerships. During his 22-year tenure at AbbVie, Inc. (and its predecessors, Abbott Laboratories and BASF Bioresearch Corporation), Dr. Avgerinos oversaw numerous aspects of biologics development and operations, including the HUMIRA® operations franchise, global biologics process and manufacturing sciences, biologics CMC, manufacturing operations, and third-party manufacturing.

Lucy Lu, M.D., Former Executive Vice President and Chief Financial Officer (Fortress Biotech), Former President and Chief Executive Officer (Avenue Therapeutics)

Dr. Lu served as Executive Vice President and Chief Financial Officer of Fortress Biotech from February 2012 to June 2017. Subsequently, she was President and Chief Executive Officer of Avenue Therapeutics, a Fortress subsidiary, from its inception until March 2022. At Avenue Therapeutics, she co-invented the foundational U.S. patents for intravenous tramadol, guided the company through its Nasdaq initial public offering, and directed the clinical development program, which included two successful Phase 3 studies. Before her roles in the biotech industry, Dr. Lu spent a decade in healthcare equity research and investment banking, including serving as a senior biotechnology equity analyst with Citigroup Investment Research from February 2007 through January 2012.

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Key Risks to Fortress Biotech (FBIO)

1. Financial Stability and Funding: Fortress Biotech has a history of operating losses and is projected to continue incurring losses. Critically, the company's current cash levels, combined with expected revenues, are not deemed sufficient to fund its operations for the next 12 months, leading to a "substantial going concern risk." This necessitates a reliance on additional external financing, which poses a significant risk of diluting existing shareholder equity. The company also carries significant debt, and has experienced declining revenue and squeezed profit margins in recent years.
2. Regulatory Approval and Manufacturing Compliance: A substantial risk for Fortress Biotech stems from its ability to successfully navigate the complex regulatory landscape, particularly with the U.S. Food and Drug Administration (FDA). The company recently received a Complete Response Letter (CRL) for CUTX-101, a treatment for Menkes disease, due to manufacturing facility deficiencies. This event, along with a previous CRL in 2020 for another product, highlights recurring issues with manufacturing compliance, especially in its outsourced models, which can cause significant delays, increase costs, and impede revenue generation.
3. Clinical Trial Success and Commercialization: As a biopharmaceutical company, Fortress Biotech's success is heavily dependent on the successful completion of clinical trials for its product candidates. These trials are expensive, time-consuming, and carry uncertain outcomes; negative results can severely harm the company's prospects. Furthermore, even if a product receives regulatory approval, there is no guarantee of commercial success, as market acceptance, competition, and overall market conditions can significantly impact sales and profitability. The biotechnology industry is intensely competitive, with larger, more established companies possessing greater resources, which could lead to competitors developing more effective or cheaper products.

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Fortress Biotech (FBIO) Addressable Market Sizes for Main Products

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Fortress Biotech (FBIO) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies:

1. Commercialization and Market Adoption of Emrosi: The successful launch and growing market adoption of Emrosi, an oral treatment for rosacea, is a significant driver. Emrosi was launched in March 2025, contributing $2.8 million in Q2 2025 revenue, and has shown a strong initial prescription ramp and expanded payer coverage. Analysts project Emrosi could potentially double the company's dermatology segment revenue by 2025 and quadruple it by 2028. This product is expected to lead to significant revenue growth, improved operating leverage, and expanding net margins.

2. Advancement and Commercialization of Diversified Pipeline Products: Fortress Biotech maintains a diversified pipeline of over 20 product candidates across various development phases, focusing on large-market therapeutic areas such as oncology, rare diseases, and gene therapy. Beyond Emrosi, the company expects continued revenue growth from its significant pipeline of late clinical-stage candidates and recently approved products, offering future monetization opportunities. The strategic acquisition of Checkpoint Therapeutics, for instance, is expected to generate positive cash flow as regulatory approval milestones for cosibelimab are met.

3. Strategic Monetization of Subsidiaries and Regulatory Milestones: The company's business model includes monetizing its subsidiaries and securing regulatory milestones. This was exemplified by a $27.1 million gain in Q2 2025 from the deconsolidation of Checkpoint following its sale to Sun Pharma. Fortress Biotech also generates revenue through royalties on sales of licensed products, such as Amzeeq in China, which contributed a $1 million milestone payment in 2024. This multi-pronged approach helps to create value through private equity and dividend income, alongside product revenue.

4. Continued Growth of Existing Marketed Dermatology Products: Fortress Biotech currently has eight marketed prescription pharmaceutical products, with a focus on dermatology. While 2024 saw some impact from higher rebate costs and lower unit volumes, the Q2 2025 net revenue showed an increase primarily from Journey Medical's dermatology products. Management anticipates continued growth and operating leverage in the second half of 2025, supported by Emrosi's market traction and expanding payer access, which is also expected to benefit the existing dermatology portfolio.

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Share Repurchases

• Fortress Biotech authorized a repurchase program of up to $5 million of its 9.375% Series A Cumulative Redeemable Perpetual Preferred Stock (FBIOP) on March 23, 2020. The program was set to conclude by May 31, 2020, or once the total repurchases reached $5 million.

Share Issuance

• In August 2020, Fortress priced an underwritten public offering of 666,666 shares of its Series A Preferred Stock at $18.00 per share, generating approximately $12 million in gross proceeds.
• Fortress announced a registered direct offering and concurrent private placements in September 2024, raising approximately $8 million in gross proceeds. This included the issuance of 3,939,394 shares of common stock (or pre-funded warrants) at $1.65 per share to institutional investors and the purchase of 763,359 shares at $1.84 per share by the company's Chairman, CEO, and President in a private placement.
• In 2024, Fortress offered and sold 3,303,305 units consisting of common stock and warrants, resulting in approximately $11.0 million in gross proceeds for general corporate purposes.

Inbound Investments

• In May 2025, Fortress received approximately $28 million at closing from Sun Pharma's acquisition of its subsidiary Checkpoint Therapeutics. Fortress is also eligible to receive up to an additional $4.8 million under a contingent value right and a 2.5% royalty on future net sales of UNLOXCYT™ (cosibelimab-ipdl).

Outbound Investments

• In 2024, Fortress subsidiary Urica Therapeutics sold dotinurad to Crystalys Therapeutics and, as part of the transaction, maintains an equity stake in Crystalys.