Fortress Biotech Reports $13.1 Million Revenue and $24.7 Million Net Loss in Q1 2025

Fortress Biotech, Inc. reported a net revenue of $13.1 million for the first quarter of 2025, a slight increase from $13.0 million in the same period of 2024. The revenue primarily stems from the sale of dermatology products through its partner company, Journey Medical Corporation. Notably, the quarter included $2.1 million in revenue from the recently launched product Emrosi, which received FDA approval in November 2024. However, this was partially offset by a decline in sales of Accutane due to increased market competition.

The company's operating expenses for the quarter decreased significantly to $35.5 million from $49.6 million year-over-year, primarily driven by a substantial reduction in research and development costs, which fell by 84% to $3.9 million. This decrease was attributed to cost-cutting measures implemented in 2024, including workforce reductions and the termination of certain clinical trials. Selling, general, and administrative expenses rose by 43% to $25.7 million, largely due to increased legal and advisory costs associated with the pending acquisition of Checkpoint Therapeutics by Sun Pharmaceutical Industries.

Fortress reported a net loss of $24.7 million for the quarter, a 37% improvement compared to a net loss of $39.0 million in the prior year. The loss attributable to Fortress shareholders was $10.6 million, down from $15.4 million in the same quarter of 2024. The company’s cash and cash equivalents increased to $91.3 million as of March 31, 2025, up from $57.3 million at the end of 2024, bolstered by financing activities that generated $52.1 million during the quarter.

Strategically, Fortress is focused on expanding its product pipeline and has entered into a merger agreement for Checkpoint, which is expected to close following a stockholder vote on May 28, 2025. The merger is anticipated to enhance Fortress's market position and financial stability. Additionally, the company is actively pursuing collaborations and licensing agreements to further its growth strategy, although it faces challenges related to financing and market competition.

Looking ahead, Fortress anticipates continued operating losses as it invests in research and development and seeks to commercialize its product candidates. The company emphasizes the need for additional funding to support its operations and growth initiatives, which may involve issuing new equity or debt securities. The ongoing market conditions and regulatory landscape will play a critical role in shaping Fortress's future financial performance and operational success.