Fortress Biotech Inc ((FBIO)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Fortress Biotech Inc. revealed a mixed sentiment, showcasing notable achievements alongside some challenges. The company celebrated the successful launch of Emrosi, a strong cash position, and positive clinical data publications. However, these were tempered by decreased net product revenue, increased net loss, and initial payer coverage hurdles for Emrosi.
Successful Launch of Emrosi
Journey Medical, a subsidiary of Fortress Biotech, announced the successful launch of Emrosi, an oral treatment for Rosacea, following FDA approval in November 2024. This product is anticipated to be transformational, entering a lucrative $1 billion treatment category.
Revenue Achievements
For 2024, Fortress Biotech reported an annual revenue of $56 million, marking the sixth consecutive quarter of positive non-GAAP adjusted EBITDA. This financial stability underscores the company’s operational efficiency despite market challenges.
Regulatory Milestones Completed
Journey Medical has fulfilled all financial obligations related to Emrosi’s regulatory fees and development milestones in the U.S., paving the way for its commercial debut and reinforcing the company’s commitment to regulatory compliance.
Strong Cash Position
Despite substantial payments, Journey Medical maintained a robust balance sheet with $20.3 million in cash as of December 31, 2024. This strong cash position is crucial for supporting future growth initiatives.
Significant Interest at AAD Conference
The company reported high interest and engagement at the 2025 AAD Conference, which is expected to bolster the launch of Emrosi and enhance its market penetration.
Positive Peer-Reviewed Publications
Phase 3 results of Emrosi were published in JAMA Dermatology, highlighting its clinical superiority and favorable safety profile, which are expected to drive its adoption in the medical community.
Decrease in Net Product Revenue
Fortress Biotech experienced a decrease in net product revenue to $55.1 million in 2024 from $59.7 million in 2023. This decline was primarily due to higher rebate costs and lower unit volumes of legacy products.
Increase in Net Loss
The net loss to common shareholders increased to $14.7 million in 2024 compared to $3.9 million in 2023. This was influenced by the absence of significant licensing payments received in the previous year.
Limited Initial Payer Coverage
Emrosi faced initial challenges in gaining insurance adoption, with only 20% commercial payer coverage and 4% Medicare coverage as of the call.
R&D Expenses Increased
Research and development expenses rose by $2.3 million to $9.9 million due to non-recurring payments related to Emrosi’s NDA filing and milestone payments.
Forward-Looking Guidance
Journey Medical’s management highlighted significant growth opportunities with Emrosi, aiming for peak annual sales of $200 million in the U.S. and $100 million internationally. Despite a net loss of $14.7 million, the company achieved a positive non-GAAP adjusted EBITDA of $800,000, indicating a strong foundation for future growth.
In conclusion, Fortress Biotech’s earnings call presented a balanced view of the company’s current standing and future prospects. While the successful launch of Emrosi and a strong cash position are promising, challenges such as decreased revenue and limited payer coverage need to be addressed. Investors and stakeholders will be keenly watching how the company navigates these hurdles to capitalize on its growth potential.