Fortress Biotech Reports 22% Revenue Growth and $137.2 Million Net Income in Latest Quarter

Fortress Biotech, Inc. reported a significant financial turnaround in its latest quarterly results, with net revenue reaching $16.0 million for the three months ended March 31, 2026, compared to $13.1 million for the same period in 2025, marking a 22% increase. This growth was primarily driven by a 21% rise in product revenue, which amounted to $15.9 million, largely attributed to the successful sales of Journey Medical Corporation's dermatology products, particularly Emrosi, which generated $6.3 million in the first quarter of 2026, up from $2.1 million in the prior year. The company also reported a net income of $137.2 million, a stark contrast to the net loss of $24.7 million recorded in the previous year, largely due to a gain of approximately $158.9 million from the sale of a priority review voucher.

Operating expenses for Fortress decreased significantly to $23.8 million from $35.5 million year-over-year, reflecting a 33% reduction. This decline was driven by a substantial decrease in selling, general, and administrative expenses, which fell by 38% to $15.9 million, primarily due to the deconsolidation of Checkpoint Therapeutics following its acquisition by Sun Pharma in May 2025. Research and development expenses also saw a dramatic drop of 86%, totaling $0.5 million, as the company shifted focus and reduced spending in this area.

Strategically, Fortress has made notable advancements, including the successful FDA approval of ZYCUBO for the treatment of Menkes disease, which was followed by the sale of the associated priority review voucher for $205 million. This transaction not only bolstered Fortress's financial position but also allowed for the repayment of significant debts, including a $14.5 million payment to Oaktree Fund Administration. The company’s cash and cash equivalents surged to $255.8 million as of March 31, 2026, compared to $79.4 million at the end of 2025, providing a solid foundation for future operations.

In terms of operational metrics, Fortress's partner company Journey has achieved approximately 85% access to commercial lives in the U.S. for Emrosi, following successful contracting with major group purchasing organizations. The company continues to face challenges, including competition from generic products and the need for ongoing regulatory compliance. Looking ahead, Fortress anticipates that its current cash reserves will be sufficient to fund operations for at least the next 12 months, although it may need to seek additional financing to support its growth strategy and product development initiatives. The company remains focused on leveraging its partnerships and expanding its product pipeline to enhance shareholder value.