FBIO · Fortress Biotech, Inc.

Fortress Biotech's Q1 2026 results marked a transformative quarter, swinging from a $12.7 million net loss in Q1 2025 to $108.4 million net income, primarily fueled by Cyprium Therapeutics' $205 million sale of a Rare Pediatric Disease Priority Review Voucher following FDA approval of ZYCUBO for Menkes disease. This non-recurring gain boosted cash to $255.8 million from $79.4 million at year-end, enabling strategic debt prepayments that reduced Oaktree loan principal to $15.0 million from higher prior levels. Core revenue grew modestly to $16.0 million from $13.1 million, driven by Journey Medical's $15.9 million in dermatology product sales, including expanded payer access for Emrosi to 85% of U.S. commercial lives. Cost efficiencies were evident with R&D expenses dropping sharply to $0.5 million from $3.9 million and SG&A to $15.9 million from $25.7 million, reflecting disciplined operations. CEO Lindsay Rosenwald highlighted portfolio execution, including Avenue's ATX-04 license for Pompe disease and ongoing royalties from ZYCUBO and UNLOXCYT, plus AstraZeneca's regulatory filings for anselamimab. These developments strengthen the balance sheet and position Fortress for royalty growth and milestone potential, enhancing long-term shareholder value amid a diversified pipeline in oncology, dermatology, and rare diseases.