Fortress Biotech Reports Third Quarter 2024 Financial Results and Recent Corporate Highlights
Fortress Biotech reported Q3 2024 financial results and highlights, including FDA approval of Emrosi for adult rosacea treatment. The company has an upcoming PDUFA date of December 28, 2024, for cosibelimab in treating advanced skin cancer. Q3 net revenue was $14.6 million from dermatology products, compared to $34.8 million in Q3 2023. Cash position stood at $58.9 million as of September 30, 2024. The company reported a net loss of $(15.0) million or $(0.76) per share. The board paused preferred stock dividends to maintain financial flexibility.
Fortress Biotech ha riportato i risultati finanziari e i punti salienti del terzo trimestre 2024, incluso l'approvazione della FDA per Emrosi nel trattamento della rosacea negli adulti. L'azienda ha una prossima data PDUFA del 28 dicembre 2024 per cosibelimab nel trattamento del cancro della pelle avanzato. Il fatturato netto del terzo trimestre è stato di 14,6 milioni di dollari dai prodotti dermatologici, rispetto ai 34,8 milioni di dollari nel terzo trimestre 2023. La posizione di cassa è di 58,9 milioni di dollari al 30 settembre 2024. L'azienda ha riportato una perdita netta di $(15,0) milioni, ovvero $(0,76) per azione. Il consiglio di amministrazione ha sospeso i dividendi delle azioni privilegiate per mantenere flessibilità finanziaria.
Fortress Biotech reportó los resultados financieros y los aspectos destacados del tercer trimestre de 2024, incluida la aprobación de la FDA de Emrosi para el tratamiento de la rosácea en adultos. La compañía tiene una próxima fecha PDUFA del 28 de diciembre de 2024 para cosibelimab en el tratamiento del cáncer de piel avanzado. Los ingresos netos del tercer trimestre fueron de 14,6 millones de dólares de productos dermatológicos, en comparación con 34,8 millones de dólares en el tercer trimestre de 2023. La posición de efectivo era de 58,9 millones de dólares al 30 de septiembre de 2024. La compañía reportó una pérdida neta de $(15,0) millones, o $(0,76) por acción. La junta pausó los dividendos de acciones preferentes para mantener flexibilidad financiera.
Fortress Biotech는 2024년 3분기 재무 결과와 주요 사항을 발표했으며, 성인 주사 치료를 위한 Emrosi의 FDA 승인을 포함합니다. 이 회사는 진행성 피부암 치료를 위한 cosibelimab에 대해 2024년 12월 28일의 PDUFA 일정이 예정되어 있습니다. 3분기 순수익은 피부과 제품에서 1,460만 달러로, 2023년 3분기 3,480만 달러와 비교됩니다. 2024년 9월 30일 기준으로 현금 보유액은 5,890만 달러였습니다. 이 회사는 1,500만 달러 또는 주당 0.76달러의 순손실을 보고했습니다. 이사회는 재정적 유연성을 유지하기 위해 우선주 배당금을 중단했습니다.
Fortress Biotech a annoncé les résultats financiers et les faits saillants du troisième trimestre 2024, y compris l'approbation de la FDA pour Emrosi dans le traitement de la rosacée chez les adultes. L'entreprise a une prochaine date PDUFA fixée au 28 décembre 2024 pour cosibelimab dans le traitement du cancer de la peau avancé. Le chiffre d'affaires net du troisième trimestre s'élevait à 14,6 millions de dollars issus des produits dermatologiques, contre 34,8 millions de dollars au troisième trimestre 2023. La position de liquidités s'élevait à 58,9 millions de dollars au 30 septembre 2024. L'entreprise a enregistré une perte nette de $(15,0) millions, soit $(0,76) par action. Le conseil d'administration a suspendu les dividendes des actions privilégiées pour maintenir une flexibilité financière.
Fortress Biotech hat die finanziellen Ergebnisse und Highlights des dritten Quartals 2024 veröffentlicht, einschließlich der FDA-Zulassung von Emrosi zur Behandlung von Rosazea bei Erwachsenen. Das Unternehmen hat einen bevorstehenden PDUFA-Termin am 28. Dezember 2024 für cosibelimab zur Behandlung von fortgeschrittenem Hautkrebs. Die Nettoumsätze im dritten Quartal betrugen 14,6 Millionen Dollar aus dermatologischen Produkten, verglichen mit 34,8 Millionen Dollar im dritten Quartal 2023. Die Bargeldposition betrug zum 30. September 2024 58,9 Millionen Dollar. Das Unternehmen berichtete von einem Nettoverlust von $(15,0) Millionen oder $(0,76) pro Aktie. Der Vorstand hat die Dividenden für Vorzugsaktien ausgesetzt, um finanzielle Flexibilität zu bewahren.
- FDA approval of Emrosi for rosacea treatment
- Upcoming PDUFA date for cosibelimab in December 2024
- Reduced total debt through new loan agreement with Oaktree
- Raised additional capital through offerings and warrant exercises
- Net revenue decreased to $14.6M in Q3 2024 from $34.8M in Q3 2023
- Net loss increased to $(15.0M) from $(7.1M) year-over-year
- Cash position declined to $58.9M from $80.9M at year-end 2023
- Suspended preferred stock dividend payments
Insights
The Q3 results reveal significant developments but concerning financials.
However, the FDA approval of Emrosi and pending PDUFA date for cosibelimab in December could be significant catalysts. The company's ability to raise additional capital through multiple channels (
The FDA approval of Emrosi for rosacea treatment represents a significant milestone, with potential market launch in Q1/Q2 2025. Clinical data presented at the Fall Clinical Dermatology Conference shows promising pharmacokinetics with higher dermal concentration compared to doxycycline, suggesting potential competitive advantages in the rosacea market.
The cosibelimab BLA for cutaneous squamous cell carcinoma shows encouraging longer-term data presented at ESMO 2024, with deepening responses over time. The collaboration with GC Cell combining cosibelimab with Immuncell-LC therapy could expand therapeutic applications in oncology. These developments strengthen the company's late-stage pipeline potential.
Emrosi approved by FDA on November 4 for the treatment of inflammatory lesions of rosacea in adults
Cosibelimab PDUFA goal date of December 28 for potential approval to treat metastatic or locally advanced cutaneous squamous cell carcinoma
MIAMI, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Fortress Biotech, Inc. (Nasdaq: FBIO) (“Fortress”), an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings and dividend and royalty revenue, today announced financial results and recent corporate highlights for the third quarter ended September 30, 2024.
Lindsay A. Rosenwald, M.D., Fortress’ Chairman, President and Chief Executive Officer, said, “We are thrilled to have received U.S. Food and Drug Administration (“FDA”) approval for Emrosi™, a potential best-in-class treatment for inflammatory lesions of rosacea in adults, which is a tremendous milestone for Fortress and our partner company, Journey Medical Corporation (“Journey Medical”). This marks the first FDA approval across the Fortress portfolio, and demonstrates our ability to successfully in-license a clinical stage program and develop it through commercialization. We could achieve up to two more U.S. FDA approvals in the next nine months, and our next anticipated PDUFA goal date is December 28, 2024, for cosibelimab, an anti-PD-L1 antibody, for the treatment of metastatic or locally advanced cutaneous squamous cell carcinoma (“cSCC”). We have an exciting late-stage pipeline with many upcoming value creation opportunities, and we are focused on attaining our long-term strategy of building shareholder value, while bringing innovative treatment options to patients with unmet medical needs.”
Recent Corporate Highlights1:
Regulatory Updates
- In November 2024, the FDA approved Emrosi (Minocycline Hydrochloride Extended-Release Capsules, 40mg), also known as DFD-29. Emrosi has the potential to be the new treatment paradigm for the millions of patients suffering from inflammatory lesions of rosacea. The treatment is expected to launch late in the first quarter or early in the second quarter of 2025 by our partner company, Journey Medical (Nasdaq: DERM).
- In July 2024, the FDA accepted the Biologics License Application (“BLA”) resubmission for cosibelimab, our investigational anti-PD-L1 antibody, as a treatment for patients with metastatic or locally advanced cSCC who are not candidates for curative surgery or radiation and set a PDUFA goal date of December 28, 2024. Cosibelimab is currently in development at our partner company, Checkpoint Therapeutics (Nasdaq: CKPT) (“Checkpoint”).
- In December 2023, we completed the asset transfer of CUTX-101 (copper histidinate for Menkes disease) to Sentynl Therapeutics (“Sentynl”), a wholly owned subsidiary of Zydus Lifesciences Ltd. Sentynl completed the rolling submission of the New Drug Application for CUTX-101 in the fourth quarter of 2024. Cyprium Therapeutics (“Cyprium”), our subsidiary company that developed CUTX-101, will retain
100% ownership over any FDA priority review voucher that may be issued at NDA approval for CUTX-101.
Clinical Updates
- In October 2024, clinical data were presented at the 44th Fall Clinical Dermatology Conference assessing the dermal and systemic pharmacokinetics of Emrosi versus oral doxycycline 40 mg capsules (Oracea®) in healthy subjects. With its extended-release formulation, Emrosi provides higher dermal concentration than doxycycline from day 1 onward at a similar dose, expected to translate into a clinically meaningful impact for treating patients with rosacea, and as demonstrated in Emrosi’s Phase 3 clinical trials.
- In September 2024, we presented longer-term data from our pivotal trial of cosibelimab in locally advanced and metastatic cSCC during the European Society for Medical Oncology (“ESMO”) Congress 2024. The longer-term results for cosibelimab demonstrate a deepening of response over time, with higher objective response and complete response rates than initially observed at the primary analyses.
Other Updates
- In July 2024, we announced a collaboration to explore the combined therapeutic potential of cosibelimab with GC Cell’s Immuncell-LC, an innovative autologous Cytokine Induced Killer (“CIK”) T cell therapy composed of cytotoxic T lymphocytes and natural killer T cells.
- Also in July 2024, our majority owned and controlled subsidiary company, Urica Therapeutics (“Urica”), entered into an asset purchase agreement, royalty agreement and related agreements with Crystalys Therapeutics (“Crystalys”). Urica transferred rights to dotinurad, its URAT1 inhibitor product candidate in development for the treatment of gout, and related intellectual property, licenses and agreements to Crystalys. In return, Crystalys issued to Urica shares of its common stock equal to
35% of Crystalys’ outstanding equity and granted Urica a securitized3% royalty on future net sales of dotinurad.
Commercial Product Updates
- Journey Medical’s net product revenues for the third quarter ended September 30, 2024 were
$14.6 million , compared to net product revenues of$14.9 million for the second quarter ended June 30, 2024.
General Corporate:
- In July 2024, Checkpoint raised
$12 million in a registered direct offering priced at-the-market under Nasdaq rules. - In July 2024, Fortress’ Board of Directors paused the payment of dividends on the Company’s
9.375% Series A Cumulative Redeemable Perpetual Preferred Stock (the “Series A Preferred Stock”) until further notice. The Company believes pausing the dividend is in the best interest of the Company and its stakeholders to maintain financial flexibility ahead of potentially significant inflection points. Dividends on the Series A Preferred Stock accrue in accordance with their terms; the pausing of these dividends will defer approximately$0.7 million in cash dividend payments each month. The Board intends to revisit its decision regarding the monthly dividend regularly and will assess the profitability and cash flow of the Company to determine whether and when the suspension should be lifted. - Also in July 2024, Fortress reduced its total debt by entering into a new loan agreement maturing in July 2027 with funds managed by Oaktree Capital Management, L.P. (“Oaktree”), a leading global investment firm. The Company received an initial tranche of
$35 million and is eligible to draw an additional$15 million with Oaktree’s consent. In connection with the new loan agreement, the Company repaid its prior term loan with Oaktree of$50 million resulting in an outstanding debt reduction of approximately$15 million of debt excluding accrued interest and prepayment fees. - In September 2024, Fortress raised
$8 million in a registered direct offering and concurrent private placements. - In October 2024, Mustang Bio raised
$4 million in gross proceeds from the exercise of existing warrants. - In November 2024, Checkpoint received
$9.2 million in gross proceeds through the exercise of existing warrants.
Financial Results:
- As of September 30, 2024, Fortress’ consolidated cash and cash equivalents totaled
$58.9 million , compared to$76.2 million as of June 30, 2024, and compared to$80.9 million as of December 31, 2023, a decrease of$17.3 million during the quarter and a decrease of$22.0 million year-to-date. - Fortress’ consolidated cash and cash equivalents, totaling
$58.9 million as of September 30, 2024, includes$25.6 million attributable to Fortress and the private subsidiaries,$2.6 million attributable to Avenue,$4.7 million attributable to Checkpoint,$3.5 million attributable to Mustang Bio and$22.5 million attributable to Journey Medical.- Fortress’ consolidated cash and cash equivalents totaled
$80.9 million as of December 31, 2023, which included$40.6 million attributable to Fortress and private subsidiaries,$1.8 million attributable to Avenue,$4.9 million attributable to Checkpoint,$6.2 million attributable to Mustang Bio and$27.4 million attributable to Journey Medical.
- Fortress’ consolidated cash and cash equivalents totaled
- Fortress’ consolidated net revenue totaled
$14.6 million for the third quarter ended September 30, 2024, all of which was generated from our marketed dermatology products. This compares to consolidated revenue totaling$34.8 million for the third quarter of 2023, which included$15.3 million in revenue generated from our marketed dermatology products and an upfront license agreement payment of$19 million . - Consolidated research and development expenses including license acquisitions totaled
$9.4 million for the third quarter ended September 30, 2024, compared to$20.3 million for the third quarter ended September 30, 2023. - Consolidated selling, general and administrative costs were
$22.0 million for the third quarter ended September 30, 2024, compared to$21.7 million for the third quarter ended September 30, 2023. - Consolidated net loss attributable to common stockholders was
$(15.0) million , or$(0.76) per share, for the third quarter ended September 30, 2024, compared to net loss attributable to common stockholders of$(7.1) million , or$(0.94) per share for the third quarter ended September 30, 2023.
About Fortress Biotech
Fortress Biotech, Inc. (“Fortress”) is an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings and dividend and royalty revenue. The company has seven marketed prescription pharmaceutical products and over 20 programs in development at Fortress, at its majority-owned and majority-controlled partners and subsidiaries and at partners and subsidiaries it founded and in which it holds significant minority ownership positions. Fortress’ portfolio is being commercialized and developed for various therapeutic areas including oncology, dermatology, and rare diseases. Fortress’ model is focused on leveraging its significant biopharmaceutical industry expertise and network to further expand and advance the company’s portfolio of product opportunities. Fortress has established partnerships with some of the world’s leading academic research institutions and biopharmaceutical companies to maximize each opportunity to its full potential, including AstraZeneca, City of Hope, Fred Hutchinson Cancer Center, Nationwide Children’s Hospital and Sentynl. For more information, visit www.fortressbiotech.com.
Forward-Looking Statements
Statements in this press release that are not descriptions of historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. The words “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology are generally intended to identify forward-looking statements. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include risks relating to: our growth strategy, financing and strategic agreements and relationships; our need for substantial additional funds and uncertainties relating to financings; our ability to identify, acquire, close and integrate product candidates successfully and on a timely basis; our ability to attract, integrate and retain key personnel; the early stage of products under development; the results of research and development activities; uncertainties relating to preclinical and clinical testing; our ability to obtain regulatory approval for products under development; our ability to successfully commercialize products for which we receive regulatory approval or receive royalties or other distributions from third parties; our ability to secure and maintain third-party manufacturing, marketing and distribution of our and our partner companies’ products and product candidates; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.
Company Contact:
Jaclyn Jaffe
Fortress Biotech, Inc.
(781) 652-4500
ir@fortressbiotech.com
Media Relations Contact:
Tony Plohoros
6 Degrees
(908) 591-2839
tplohoros@6degreespr.com
| FORTRESS BIOTECH, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets ($ in thousands except for share and per share amounts) | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 58,853 | $ | 80,927 | ||||
| Accounts receivable, net | 10,671 | 15,222 | ||||||
| Inventory | 11,788 | 10,206 | ||||||
| Other receivables - related party | 174 | 167 | ||||||
| Prepaid expenses and other current assets | 2,583 | 10,500 | ||||||
| Assets held for sale | 2,209 | — | ||||||
| Total current assets | 86,278 | 117,022 | ||||||
| Property, plant and equipment, net | 3,403 | 6,505 | ||||||
| Operating lease right-of-use asset, net | 14,152 | 16,990 | ||||||
| Restricted cash | 2,063 | 2,438 | ||||||
| Intangible assets, net | 17,844 | 20,287 | ||||||
| Other assets | 3,345 | 4,284 | ||||||
| Total assets | $ | 127,085 | $ | 167,526 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 64,499 | $ | 73,562 | ||||
| Income taxes payable | 850 | 843 | ||||||
| Common stock warrant liabilities | 154 | 886 | ||||||
| Operating lease liabilities, short-term | 2,514 | 2,523 | ||||||
| Partner company convertible preferred shares, short-term, net | — | 3,931 | ||||||
| Partner company installment payments - licenses, short-term | 1,250 | 3,000 | ||||||
| Other short-term liabilities | 1,038 | 163 | ||||||
| Total current liabilities | 70,305 | 84,908 | ||||||
| Notes payable, long-term, net | 52,473 | 60,856 | ||||||
| Operating lease liabilities, long-term | 15,292 | 18,282 | ||||||
| Other long-term liabilities | 1,753 | 1,893 | ||||||
| Total liabilities | 139,823 | 165,939 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity (deficit) | ||||||||
| Cumulative redeemable perpetual preferred stock, | 3 | 3 | ||||||
| Common stock, | 28 | 15 | ||||||
| Additional paid-in-capital | 755,229 | 717,396 | ||||||
| Accumulated deficit | (734,102 | ) | (694,870 | ) | ||||
| Total stockholders' equity attributed to the Company | 21,158 | 22,544 | ||||||
| Non-controlling interests | (33,896 | ) | (20,957 | ) | ||||
| Total stockholders' equity (deficit) | (12,738 | ) | 1,587 | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 127,085 | $ | 167,526 | ||||
| FORTRESS BIOTECH, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations ($ in thousands except for share and per share amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | ||||||||||||||||
| Product revenue, net | $ | 14,629 | $ | 15,279 | $ | 42,514 | $ | 44,405 | ||||||||
| Collaboration revenue | — | 182 | — | 546 | ||||||||||||
| Revenue - related party | — | 31 | 41 | 97 | ||||||||||||
| Other revenue | — | 19,260 | — | 19,519 | ||||||||||||
| Net revenue | 14,629 | 34,752 | 42,555 | 64,567 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Cost of goods sold - product revenue | 5,285 | 6,429 | 18,642 | 20,645 | ||||||||||||
| Research and development | 9,446 | 20,288 | 46,941 | 87,702 | ||||||||||||
| Research and development - licenses acquired | — | 60 | — | 4,293 | ||||||||||||
| Selling, general and administrative | 21,993 | 21,733 | 60,867 | 71,512 | ||||||||||||
| Asset impairment | — | — | 2,649 | 3,143 | ||||||||||||
| Total operating expenses | 36,724 | 48,510 | 129,099 | 187,295 | ||||||||||||
| Loss from operations | (22,095 | ) | (13,758 | ) | (86,544 | ) | (122,728 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 589 | 547 | 2,157 | 2,296 | ||||||||||||
| Interest expense and financing fee | (6,209 | ) | (2,534 | ) | (10,933 | ) | (13,255 | ) | ||||||||
| Gain (loss) on common stock warrant liabilities | 19 | 4,542 | (578 | ) | 10,708 | |||||||||||
| Other income (expense) | 1,071 | 620 | 1,334 | (2,049 | ) | |||||||||||
| Total other income (expense) | (4,530 | ) | 3,175 | (8,020 | ) | (2,300 | ) | |||||||||
| Loss before income tax expense | (26,625 | ) | (10,583 | ) | (94,564 | ) | (125,028 | ) | ||||||||
| Income tax expense (refund) | 69 | 141 | (24 | ) | 142 | |||||||||||
| Net loss | (26,694 | ) | (10,724 | ) | (94,540 | ) | (125,170 | ) | ||||||||
| Net loss attributable to non-controlling interests | 13,827 | 5,679 | 55,308 | 73,812 | ||||||||||||
| Net loss attributable to Fortress | $ | (12,867 | ) | $ | (5,045 | ) | $ | (39,232 | ) | $ | (51,358 | ) | ||||
| Preferred A dividends declared and paid and/or cumulated, and Fortress' share of subsidiary deemed dividends | (2,173 | ) | (2,008 | ) | (7,006 | ) | (6,024 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (15,040 | ) | $ | (7,053 | ) | $ | (46,238 | ) | $ | (57,382 | ) | ||||
| Net loss per common share attributable to common stockholders - basic and diluted | $ | (0.76 | ) | $ | (0.94 | ) | $ | (2.43 | ) | $ | (7.94 | ) | ||||
| Weighted average common shares outstanding - basic and diluted | 19,697,290 | 7,498,653 | 19,041,590 | 7,231,004 | ||||||||||||
1 The development programs depicted in this press release include product candidates in development at Fortress, at Fortress’ private subsidiaries (referred to herein as “subsidiaries”), at Fortress’ public subsidiaries (referred to herein as “partner companies”) and at entities with whom one of the foregoing parties has a significant business relationship, such as an exclusive license or an ongoing product-related payment obligation (such entities referred to herein as “partners”). The words “we”, “us” and “our” may refer to Fortress individually, to one or more of our subsidiaries and/or partner companies, or to all such entities as a group, as dictated by context.
FAQ
What was Fortress Biotech's (FBIO) revenue in Q3 2024?
When did FBIO receive FDA approval for Emrosi?
What is FBIO's cash position as of Q3 2024?
When is the PDUFA date for FBIO's cosibelimab?
