Fortress Biotech, Inc.

What they do

Fortress licenses or acquires intellectual property from universities, research institutes, and pharmaceutical companies such as City of Hope, Dana-Farber Cancer Institute, Nationwide Children's Hospital, AstraZeneca, Dr. Reddy's Laboratories, and Sun Pharma. It then provides business, scientific, regulatory, legal, and financial support to its subsidiaries and partner companies, which pursue joint ventures, partnerships, out-licensings, sales transactions, and financings. Subsidiaries and partner companies include Journey Medical, Mustang Bio, Avenue Therapeutics, Cellvation, Cyprium, Helocyte, Oncogenuity, Urica, and LemmaTx. Three partner companies are publicly traded.

Revenue drivers

• Journey Medical marketed products — The largest revenue source; Journey's net product revenue was $17.8M for Q2 2026, driving the bulk of Fortress's $18.7M quarterly net revenue. Emrosi, approved November 2024 and launched March 2025, is the key marketed product.
• Royalty income (ZYCUBO, UNLOXCYT) — Cyprium recognized $0.2M in royalty revenue on ZYCUBO net sales in Q2 2026, and Fortress recognized $0.1M in royalty income on UNLOXCYT net sales. Fortress is also eligible for a 2.5% royalty on UNLOXCYT net sales from the Checkpoint acquisition.
• Urica royalty on dotinurad — Urica holds an equity position in Crystalys Therapeutics and is entitled to a 3% royalty on future net sales of dotinurad, a URAT1 inhibitor for gout. No royalty revenue has been reported from this program yet.

Recent performance

Total net revenue rose 14% to $18.7M in Q2 2026 from $16.4M in Q2 2025. Annual revenue was $63.3M in 2025 versus $57.7M in 2024, after declining from $84.5M in 2023. Operating cash flow remained negative at -$65.8M in 2025, improving from -$80.2M in 2024 and -$128.2M in 2023. Diluted EPS was -$0.07 in 2025, versus -$2.69 in 2024, while net income swung from $21.0M in 2024 to $37.0M in 2025. At June 30, 2026, cash was $196.6M against $110.6M total liabilities and $35.0M long-term debt.

Strategy

Fortress aims to acquire and advance assets through product revenue, equity holdings, and dividend and royalty streams, working with academic and pharmaceutical partners. Portfolios advance through arrangements such as joint ventures, partnerships, out-licensings, financing, and sales transactions. Recent monetizations include the $28.0M received from Checkpoint's acquisition by Sun Pharma in May 2025, with eligibility for up to $4.8M in contingent value rights, and a $205M PRV sale noted for the first quarter of 2026. Crystalys Therapeutics announced a $130M Series B financing to support late-stage global development and commercialization preparation for dotinurad. Journey Medical expanded Emrosi payer access to over 150 million commercial lives via a third major GPO contract.

Risks

• History of operating losses — The company has a history of operating losses, expects such losses to continue, and reported negative operating cash flow of $65.8M in 2025.
• Need for substantial additional funds — R&D programs require substantial additional capital that the company may be unable to raise as needed, and it has funded operations partly through debt.
• Early-stage product candidates — Most product candidates remain in early development stages and may never be successfully developed or commercialized; FDA issues included a Complete Response Letter for CUTX-101 in October 2025.
• Uncertain royalty and milestone timing — There is uncertainty about the timing and amounts expected from future milestone, contingent value right, royalty, or similar revenue streams.

Outlook

Management points to a favorable cash balance after the ZYCUBO PRV monetization, stating it positions the company to execute on pipeline and business development priorities. AstraZeneca reported subgroup analyses for anselamimab and indicated plans to submit findings to regulatory authorities. Crystalys is advancing two global Phase 3 trials of dotinurad and initiating a Phase 2 study in difficult-to-treat gout. Journey Medical continues to scale Emrosi following expanded payer access.