Fortress Biotech, Inc. reported a net revenue of $16.4 million for the three months ended June 30, 2025, marking a 10% increase from $14.9 million in the same period of 2024. The revenue primarily stemmed from the sale of dermatology products through its partner company, Journey Medical Corporation, which generated $15.0 million in product revenue. For the first half of 2025, Fortress recorded a total net revenue of $29.6 million, up from $27.9 million in the prior year. The increase was bolstered by the launch of Emrosi, a new product approved by the FDA in November 2024, which contributed $4.9 million to the revenue during the six-month period.
Operating expenses for Fortress increased to $52.9 million in the second quarter of 2025, up from $42.7 million in the same quarter of 2024, driven largely by a significant rise in selling, general, and administrative expenses, which surged by 86% to $38.8 million. This increase was primarily attributed to stock compensation expenses related to the vesting of equity awards following the acquisition of Checkpoint Therapeutics by Sun Pharma. Research and development expenses decreased by 36% to $8.1 million, reflecting cost-cutting measures at Mustang Bio and reduced spending related to Journey's product launches.
In a strategic development, Fortress deconsolidated Checkpoint in May 2025 following its acquisition by Sun Pharma, resulting in a gain of approximately $27.1 million recognized in the financial statements for the second quarter. This transaction aligns with Fortress's strategy to monetize investments in biopharmaceutical companies. The company also reported a significant reduction in its accumulated deficit, which stood at $736 million as of June 30, 2025, down from $740.9 million at the end of 2024.
Fortress's cash and cash equivalents totaled $74.4 million at the end of the second quarter, with $38.1 million attributed to Fortress and its private subsidiaries. The company anticipates that its current cash reserves will be sufficient to fund operations for at least the next 12 months. However, it acknowledges the need for additional funding to support ongoing research and development activities, as well as to meet its debt obligations, particularly under its agreement with Oaktree Fund Administration. The company has paused dividend payments on its Series A Preferred Stock, which may impact its ability to raise capital through certain registration statements in the future.
Looking ahead, Fortress remains focused on advancing its product pipeline and exploring strategic collaborations to enhance its growth potential. The company is actively engaged in clinical trials for several product candidates, including Triplex and CAEL-101, while also navigating the competitive landscape of the biopharmaceutical industry. The management's outlook emphasizes the importance of securing additional financing and maintaining compliance with regulatory requirements to achieve its long-term objectives.
About Fortress Biotech, Inc.
Fortress Biotech, Inc. is a biopharmaceutical company that acquires, develops, and commercializes innovative drug candidates across various therapeutic areas. It operates through subsidiaries and partner companies, focusing on product revenue, royalties, and equity holdings. The company collaborates with leading research institutions and industry partners to bring targeted therapies to market, emphasizing immuno-oncology, dermatology, and rare diseases.
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