FBIO · Fortress Biotech, Inc.

Fortress Biotech's 2025 financial results demonstrate significant operational improvement, with consolidated net loss narrowing dramatically to $(1.9) million from $(55.9) million in the prior year. This improvement was driven by a substantial reduction in research and development expenses, which decreased from $56.9 million to $11.9 million, reflecting the company's shift toward monetizing assets rather than funding early-stage development. Revenue growth was modest, with consolidated net revenue increasing to $63.3 million from $57.7 million, primarily from dermatology products including Emrosi™, which generated $61.2 million in net revenue through partner company Journey Medical. The company's business model of acquiring and advancing assets for monetization yielded several significant transactions in 2025 and early 2026. Most notably, subsidiary Cyprium Therapeutics sold a Rare Pediatric Disease Priority Review Voucher for $205 million following FDA approval of ZYCUBO® for Menkes disease, with Cyprium also eligible for tiered royalties and up to approximately $128 million in sales milestones from Sentynl Therapeutics. The acquisition of Checkpoint Therapeutics by Sun Pharma in May 2025 provided Fortress with upfront capital and established a long-term royalty stream of 2.5% on future net sales of UNLOXCYT™. Fortress also strengthened its balance sheet, with consolidated cash and cash equivalents totaling $79.4 million as of December 31, 2025, and further reduced debt through prepayments on its Oaktree loan to $15.0 million outstanding principal as of March 2026. Management highlighted disciplined execution across the portfolio, including advancing clinical programs like dotinurad into Phase 3 development through Crystalys Therapeutics, where Fortress maintains equity and royalty rights.