Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Fortress Biotech (FBIO) Analysis - Fortress Biotech (FBIO) has shown a four-week price change of 6.3%, indicating growing investor interest [4] - Over the past 12 weeks, FBIO's stock has gained 12.8%, with a beta of 1.81, suggesting it moves 81% more than the market [5] - FBIO has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - FBIO is trading at a Price-to-Sales ratio of 0.56, suggesting it is undervalued at 56 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides FBIO, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of potential winning stocks [9]

分组1 - Fortress Biotech reported a quarterly loss of $0.73 per share, significantly better than the Zacks Consensus Estimate of a loss of $1.32, and an improvement from a loss of $3.60 per share a year ago, resulting in an earnings surprise of 44.70% [1] - The company posted revenues of $14.9 million for the quarter ended June 2024, which was below the Zacks Consensus Estimate by 0.49% and a decrease from $17.39 million in the same quarter last year [2] - Fortress Biotech shares have declined approximately 41.2% year-to-date, contrasting with the S&P 500's gain of 12.1% [3] 分组2 - The earnings outlook for Fortress Biotech is mixed, with the current consensus EPS estimate for the upcoming quarter at -$1.36 on revenues of $28.21 million, and for the current fiscal year at -$5.07 on revenues of $81.22 million [7] - The Medical - Biomedical and Genetics industry, to which Fortress Biotech belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Aman Kumar, Co-Portfolio Manager for Oaktree's Life Sciences Lending platform, commented, "We are delighted to continue our strategic partnership with Fortress, supporting their ability to source, acquire and develop innovative assets with strong proof-of-concept in humans and the potential to address areas of high unmet medical need. Fortress has several near-term value creating opportunities across its extensive pipeline, along with a unique and highly scalable business model. We are impressed by the Comp ...

A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns fo ...

Core Points - Mustang Bio, Inc. has completed a registered direct offering of 6,130,000 shares of common stock at a price of $0.41 per share, generating approximately $2.5 million in gross proceeds [1][2] - The company intends to use the net proceeds for working capital and general corporate purposes [2] - In a concurrent private placement, Mustang issued unregistered warrants to purchase an additional 6,130,000 shares at the same exercise price of $0.41 per share [1][3] Offering Details - The offering was conducted under Nasdaq rules and the shares were sold at-the-market [1] - The unregistered warrants are exercisable upon stockholder approval and will expire five years from that date [1] - H.C. Wainwright & Co. acted as the exclusive placement agent for the offering [7] Company Overview - Mustang Bio is a clinical-stage biopharmaceutical company focused on developing cell therapies for difficult-to-treat cancers [10] - The company aims to acquire rights to medical technologies through licensing or ownership, fund research and development, and bring these technologies to market [10] - Mustang has partnered with leading medical institutions to advance CAR-T therapy development [10]

Core Viewpoint - Mustang Bio, Inc. has announced a definitive agreement for the issuance and sale of 6,130,000 shares of common stock at a price of $0.41 per share, along with unregistered warrants to purchase an equal number of shares, aimed at raising approximately $2.5 million for working capital and general corporate purposes [2][5]. Group 1: Offering Details - The gross proceeds from the offering are expected to be approximately $2.5 million before deducting fees and expenses [2]. - The offering includes a registered direct offering and a concurrent private placement of unregistered warrants [5]. - The unregistered warrants will have an exercise price of $0.41 per share and will expire five years from the date of stockholder approval [6]. Group 2: Regulatory Information - The unregistered warrants and underlying shares have not been registered under the Securities Act and may not be resold in the U.S. without an effective registration statement or applicable exemption [3]. - The shares offered in the registered direct offering are being made under a "shelf" registration statement previously filed with the SEC [7]. Group 3: Company Overview - Mustang Bio is a clinical-stage biopharmaceutical company focused on developing cell therapies for difficult-to-treat cancers [9]. - The company aims to acquire rights to medical technologies, fund research and development, and partner with leading medical institutions to advance CAR-T therapies [9].

All patients were heavily pretreated/refractory to BTK inhibitors, and only one patient has started new anti-WM treatment after MB-106 Overall response rate of 90% in cohort with durable responses observed; one patient remains in complete remission at 31 months Outpatient administration was allowed and found to be feasible Currently no FDA-approved CAR-T treatments for WM Data presented at the European Hematology Association 2024 Hybrid Congress WORCESTER, Mass., June 17, 2024 (GLOBE NEWSWIRE) -- Mustang Bi ...

Company Overview - Fortress Biotech, Inc. is an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings, and dividend and royalty revenue [3] - The company has seven marketed prescription pharmaceutical products and over 20 programs in development across various therapeutic areas including oncology, dermatology, and rare diseases [3] - Fortress has established partnerships with leading academic research institutions and biopharmaceutical companies such as AstraZeneca, City of Hope, Fred Hutchinson Cancer Center, Nationwide Children's Hospital, and Sentynl to maximize opportunities [3] Upcoming Events - Lindsay A. Rosenwald, M.D., Chairman, President, and CEO of Fortress, will participate in a fireside chat at the Alliance Global Partners' Virtual Healthcare Company Showcase on May 21, 2024, at 4:20 p.m. ET [1] - A replay of the fireside chat will be available on Fortress' website for approximately 30 days following the meeting [2]

PART I. FINANCIAL INFORMATION [Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents Fortress Biotech's unaudited condensed consolidated financial statements for Q1 2024, detailing financial position, performance, and cash flows [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Fortress Biotech reported total assets of **$164.6 million**, a slight decrease from **$167.5 million** at December 31, 2023, resulting in a total stockholders' deficit of **$3.9 million** Condensed Consolidated Balance Sheet Data (in thousands) | | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $116,548 | $117,022 | | **Total Assets** | **$164,645** | **$167,526** | | **Total Current Liabilities** | $87,696 | $84,908 | | **Total Liabilities** | **$168,582** | **$165,939** | | **Total Stockholders' Equity (Deficit)** | **($3,937)** | **$1,587** | [Unaudited Condensed Consolidated Statements of Operations](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, net revenues increased to **$13.0 million**, with loss from operations narrowing to **$36.6 million** due to reduced R&D and SG&A expenses, leading to a net loss attributable to Fortress of **$15.4 million** Condensed Consolidated Statements of Operations (in thousands, except per share data) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net Revenue** | $13,030 | $12,429 | | **Total Operating Expenses** | $49,596 | $71,296 | | **Loss from Operations** | ($36,566) | ($58,867) | | **Net Loss** | ($39,023) | ($55,145) | | **Net Loss Attributable to Fortress** | ($15,417) | ($21,537) | | **Net Loss Per Common Share** | ($1.03) | ($3.47) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to **$25.4 million** in Q1 2024, with **$27.9 million** provided by financing activities, resulting in a net increase in cash of **$2.5 million** Summary of Cash Flows (in thousands) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($25,387) | ($43,220) | | **Net cash used in investing activities** | $0 | ($5,000) | | **Net cash provided by financing activities** | $27,859 | $22,187 | | **Net increase (decrease) in cash** | $2,472 | ($26,033) | | **Cash, cash equivalents and restricted cash at end of period** | $85,837 | $154,921 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail Fortress Biotech's business model, significant accounting policies, debt, equity, and segment performance, along with liquidity and subsequent events - Fortress operates as a biopharmaceutical company focused on acquiring and advancing assets through subsidiaries and partner companies, including Avenue, Checkpoint, Journey, and Mustang. The parent company's cash of **$43.9 million** is considered sufficient to fund its operations for at least the next 12 months, but additional funding will be needed for broader development and regulatory activities[41](index=41&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk) - In May 2024, Mustang and uBriGene executed a National Security Agreement with CFIUS, agreeing to abandon the previously planned sale of Mustang's Worcester manufacturing facility to uBriGene[60](index=60&type=chunk) Total Debt Outstanding (in thousands) | Debt Instrument | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Oaktree Note | $50,000 | $50,000 | | SWK Term Loan | $15,000 | $15,000 | | Less: Discount on notes payable | ($3,580) | ($4,144) | | **Total notes payable** | **$61,420** | **$60,856** | - In January 2024, Fortress closed a registered direct offering, raising net proceeds of approximately **$10.2 million**[101](index=101&type=chunk) - Subsequent to the quarter end, in April 2024, Avenue effected a 1-for-75 reverse stock split. In May 2024, Avenue raised approximately **$4.4 million** in gross proceeds through a warrant inducement transaction[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - Subsequent to the quarter end, in April 2024, Mustang reduced its workforce by approximately **81%**. In May 2024, Mustang raised approximately **$3.3 million** in net proceeds from a public offering[145](index=145&type=chunk)[146](index=146&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2024 financial performance, highlighting increased net revenue, significantly reduced operating expenses, and a strong liquidity position [Overview and Recent Events](index=44&type=section&id=Overview%20and%20Recent%20Events) Fortress Biotech's Q1 2024 saw a **5%** net revenue increase to **$13.0 million**, alongside key pipeline updates and successful financing activities across the company and its partners - **Cosibelimab:** Following a CRL from the FDA due to issues at a third-party manufacturer, Checkpoint plans to resubmit the BLA mid-year 2024[160](index=160&type=chunk) - **DFD-29:** The FDA accepted the NDA for this rosacea treatment, setting a PDUFA goal date of November 4, 2024[160](index=160&type=chunk) - **CUTX-101:** The rolling NDA submission for this Menkes disease treatment is ongoing and expected to be completed by partner Sentynl in 2024[158](index=158&type=chunk) - **IV Tramadol:** Avenue reached an agreement with the FDA on the Phase 3 safety study protocol and plans to initiate the study subject to financing[162](index=162&type=chunk) - **Corporate Financing:** In Q1 2024, Fortress raised **~$11.0M**, and Checkpoint raised **~$14.0M**. Post-quarter, Avenue raised **~$4.4M** and Mustang raised **~$4.0M**[170](index=170&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) Q1 2024 net revenue increased **5%** to **$13.0 million**, while total operating expenses decreased **30%** to **$49.6 million**, significantly improving the loss from operations to **$36.6 million** Comparison of Results of Operations (in thousands) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Net Revenue** | $13,030 | $12,429 | 5% | | **Cost of Goods Sold** | $6,816 | $6,449 | 6% | | **Research & Development** | $24,839 | $35,276 | (30)% | | **R&D - Licenses Acquired** | $0 | $4,230 | (100)% | | **Selling, General & Administrative** | $17,941 | $25,341 | (29)% | | **Loss from Operations** | ($36,566) | ($58,867) | 38% | - The decrease in R&D spending was mainly due to reduced personnel and program costs at Mustang (**$10.2M decrease**) and lower BLA-related expenses at Checkpoint (**$7.3M decrease**), partially offset by a **$5.9M increase** at Journey for DFD-29 filing fees and milestones[187](index=187&type=chunk) - The decrease in SG&A expenses was primarily driven by a **$4.9M reduction** at Journey due to cost reduction initiatives in sales and marketing[193](index=193&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company held **$83.8 million** in cash and cash equivalents, with management deeming it sufficient for at least the next 12 months of operations, supported by **$27.9 million** from financing activities Cash and Cash Equivalents by Entity (in millions) as of March 31, 2024 | Entity | Cash & Cash Equivalents | | :--- | :--- | | Fortress & private subsidiaries | $43.9 | | Checkpoint | $11.2 | | Mustang | $1.3 | | Journey | $24.1 | | Avenue | $3.2 | | **Total** | **$83.8** | - The company and its subsidiaries have actively raised capital through at-the-market programs and registered direct offerings. In Q1 2024, Fortress raised net proceeds of **~$10.2M** from a direct offering and **$0.9M** from its ATM program[207](index=207&type=chunk)[208](index=208&type=chunk) - Partner companies also secured financing in Q1 2024, with Checkpoint raising **~$12.8M** in a direct offering, Avenue raising **~$4.5M** from a warrant inducement, and Journey raising **$1.5M** from its ATM program[211](index=211&type=chunk)[214](index=214&type=chunk)[216](index=216&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a "smaller reporting company," Fortress Biotech, Inc. is not required to provide the information for this item - The company is a "smaller reporting company" and is therefore not required to provide quantitative and qualitative disclosures about market risks[220](index=220&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[221](index=221&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[222](index=222&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) There were no material developments in legal proceedings during the quarter, with the company noting its indemnification obligation for Caelum in the ongoing UTRF Litigation, scheduled for trial in September 2024 - Fortress has an indemnification obligation to its former subsidiary Caelum in a lawsuit brought by The University of Tennessee Research Foundation (UTRF) regarding alleged trade secret misappropriation[119](index=119&type=chunk) - Fortress's indemnification is capped at the amount of acquisition proceeds it received (**~$57 million**) and may be offset against future payments from the acquirer, AstraZeneca. The company believes the amount in escrow (**$15 million**) is sufficient to cover anticipated costs and has not accrued a liability[119](index=119&type=chunk) - A trial for the UTRF Litigation is scheduled for September 2024, pending a motion for summary judgment[119](index=119&type=chunk) [Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant investment risks, encompassing drug development, financing, revenue dependence, business strategy, third-party reliance, and regulatory compliance [Risks Inherent in Drug Development](index=64&type=section&id=Risks%20Inherent%20in%20Drug%20Development) The company faces substantial risks in drug development, including high failure rates in clinical trials, intense competition, and potential delays or terminations of studies - Most product candidates are in early development stages, requiring substantial capital and time, with a high risk of failure in clinical trials or at the regulatory approval stage[227](index=227&type=chunk) - The company faces intense competition from larger pharmaceutical companies with greater resources, which may develop more effective or cheaper treatments, rendering Fortress's candidates obsolete[241](index=241&type=chunk)[245](index=245&type=chunk) - Delays, suspensions, or terminations of clinical trials can occur for numerous reasons, including patient enrollment difficulties, safety issues, or regulatory holds, which would increase costs and hinder development[234](index=234&type=chunk)[239](index=239&type=chunk) [Risks Pertaining to the Need for and Impact of Existing and Additional Financing Activities](index=73&type=section&id=Risks%20Pertaining%20to%20the%20Need%20for%20and%20Impact%20of%20Existing%20and%20Additional%20Financing%20Activities) Fortress has a history of operating losses and requires substantial additional funding, with its ability to raise capital limited by existing debt covenants and SEC rules, leading to potential R&D curtailment and stockholder dilution - The company has a history of operating losses (**$39.0M** for Q1 2024) and an accumulated deficit of **$710.3 million** as of March 31, 2024, with losses expected to continue[262](index=262&type=chunk) - Substantial additional funding is required for R&D, commercialization, and acquisitions. The company's ability to raise capital through shelf registrations is limited by the SEC's "baby shelf rules" due to its public float being under **$75 million**[272](index=272&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk) - Existing debt, such as the Oaktree Note, contains restrictive covenants that limit the company's ability to incur more debt, make certain investments, and pay dividends, potentially hindering growth opportunities[259](index=259&type=chunk)[261](index=261&type=chunk) [Risks Pertaining to Our Existing Revenue Stream from Journey Medical Corporation](index=81&type=section&id=Risks%20Pertaining%20to%20Our%20Existing%20Revenue%20Stream%20from%20Journey%20Medical%20Corporation) The company's revenue heavily relies on Journey's dermatology products, which face risks from generic competition and dependence on favorable managed care formulary inclusion and third-party payor reimbursement - The vast majority of operating income is expected to come from Journey's dermatology products. Any setbacks related to supply, demand, manufacturing, or competition for these products could significantly impair financial results[282](index=282&type=chunk) - A significant portion of Journey's sales comes from products without patent protection (e.g., Accutane, Targadox), making them vulnerable to generic competition, which can lead to intense price pressure and loss of market share[283](index=283&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk) - Sales depend on reimbursement from third-party payors and inclusion in managed care formularies. Failure to secure favorable formulary status or adequate reimbursement levels could negatively impact product utilization and market share[291](index=291&type=chunk)[292](index=292&type=chunk) [Risks Pertaining to our Business Strategy, Structure and Organization](index=87&type=section&id=Risks%20Pertaining%20to%20our%20Business%20Strategy%2C%20Structure%20and%20Organization) The company's business model, involving complex collaborations and acquisitions, creates financial risks through subsidiary guarantees and potential conflicts of interest due to shared officers and concentrated ownership - The strategy of entering into collaborations or divestitures (like with Caelum and Cyprium) is complex and may reduce business scope or fail to consummate, impairing asset value[305](index=305&type=chunk)[306](index=306&type=chunk) - Fortress acts as a guarantor and/or indemnitor for certain obligations of its subsidiaries, which could require substantial payments based on the actions of those entities[312](index=312&type=chunk)[313](index=313&type=chunk) - Shared officers and directors across Fortress and its partner companies could create conflicts of interest regarding corporate opportunities and transactions[317](index=317&type=chunk) [Risks Pertaining to Reliance on Third Parties](index=93&type=section&id=Risks%20Pertaining%20to%20Reliance%20on%20Third%20Parties) Fortress heavily relies on third parties for manufacturing, clinical trials, and R&D, introducing risks of non-compliance, delays, and disputes that could significantly hinder product development and commercialization - The company depends heavily on third-party manufacturers for preclinical, clinical, and commercial supply. Any failure by these manufacturers to comply with cGMP or other regulations could halt trials and sales[327](index=327&type=chunk)[328](index=328&type=chunk) - Reliance on third-party CROs to conduct clinical trials is critical. If these parties fail to meet deadlines, adhere to protocols, or comply with GCP, clinical data may be deemed unreliable, delaying or preventing regulatory approval[334](index=334&type=chunk)[337](index=337&type=chunk)[338](index=338&type=chunk) - Collaborative relationships are difficult to establish and manage. Partners may not commit sufficient resources or may prioritize other projects, and disputes can terminate agreements, jeopardizing development programs[342](index=342&type=chunk)[344](index=344&type=chunk) [Risks Pertaining to Intellectual Property and Potential Disputes with Licensors Thereof](index=99&type=section&id=Risks%20Pertaining%20to%20Intellectual%20Property%20and%20Potential%20Disputes%20with%20Licensors%20Thereof) The company's success depends on maintaining patent protection, much of which is in-licensed, exposing it to risks of litigation, validity challenges, and licensor disputes that could jeopardize product development and commercialization - The company's ability to commercialize products depends on maintaining sufficient patent protection, which is uncertain and subject to challenges, invalidation, or circumvention by competitors[348](index=348&type=chunk)[352](index=352&type=chunk) - The majority of intellectual property is in-licensed from third parties. Any dispute with these licensors over terms, payments, or diligence obligations could adversely affect the ability to develop and commercialize the applicable product candidates[366](index=366&type=chunk)[367](index=367&type=chunk) - The company may be sued for infringing third-party intellectual property rights, which could be costly, time-consuming, and result in being forced to obtain licenses, pay substantial damages, or abandon product candidates[364](index=364&type=chunk)[365](index=365&type=chunk) [Risks Pertaining to the Commercialization of Product Candidates](index=108&type=section&id=Risks%20Pertaining%20to%20the%20Commercialization%20of%20Product%20Candidates) Even with regulatory approval, products face significant commercialization risks, including uncertain market acceptance, potential product liability claims, and ongoing regulatory scrutiny that could lead to marketing restrictions or withdrawal - Approved products may not achieve broad market acceptance, which depends on factors like efficacy, safety, cost-effectiveness, and competition. Failure to gain acceptance will limit revenue[372](index=372&type=chunk)[373](index=373&type=chunk) - The company faces potential product liability exposure from clinical trials and commercial sales. Successful claims could result in substantial liabilities, reputational harm, and limit commercialization[376](index=376&type=chunk) - Approved products are subject to ongoing regulatory requirements. Later discovery of problems or failure to comply can result in restrictions, recalls, fines, or withdrawal of marketing approval[380](index=380&type=chunk)[381](index=381&type=chunk) [Risks Pertaining to Legislation and Regulation Affecting the Biopharmaceutical and Other Industries](index=113&type=section&id=Risks%20Pertaining%20to%20Legislation%20and%20Regulation%20Affecting%20the%20Biopharmaceutical%20and%20Other%20Industries) The company's business is subject to extensive and evolving healthcare laws and regulations, with compliance costs and potential penalties, while legislative efforts to control healthcare costs could negatively impact drug pricing and profitability - The company is subject to complex healthcare laws (e.g., Anti-Kickback Statute, False Claims Act), and non-compliance can lead to criminal sanctions, civil penalties, and exclusion from government healthcare programs[384](index=384&type=chunk) - Healthcare reform measures, particularly those aimed at containing drug costs like the Inflation Reduction Act of 2022, could reduce prices and reimbursement for products, adversely affecting profitability[299](index=299&type=chunk)[301](index=301&type=chunk) - If the company's holdings of minority interests in other entities expand, it may become subject to regulation under the Investment Company Act of 1940, which would incur significant compliance costs[388](index=388&type=chunk) [General and Other Risks](index=115&type=section&id=General%20and%20Other%20Risks) This section covers a range of general business risks, including cybersecurity threats, reliance on key personnel, potential for employee misconduct, stock price volatility, and challenges in managing growth - The business is vulnerable to computer system failures and cyber-attacks. A 2021 incident at Journey resulted in a **$9.5 million** misdirection of funds, highlighting the financial and reputational risks[390](index=390&type=chunk)[392](index=392&type=chunk) - The company's success depends on retaining key officers and employees. Competition for qualified personnel is intense, and their loss could adversely affect the business[397](index=397&type=chunk) - The company has previously failed to meet Nasdaq's minimum bid price requirement. Future non-compliance with listing standards could result in the delisting of its securities, which would decrease market liquidity and price[423](index=423&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=127&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[425](index=425&type=chunk) [Defaults Upon Senior Securities](index=127&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[426](index=426&type=chunk) [Mine Safety Disclosures](index=127&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[427](index=427&type=chunk) [Other Information](index=127&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed in this item - None[428](index=428&type=chunk) [Exhibits](index=127&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, agreements related to recent financing activities, and certifications by the CEO and CFO - Exhibits filed include certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) and documents related to the December 2023 Securities Purchase Agreement and Placement Agency Agreement (Exhibits 10.1, 10.2)[432](index=432&type=chunk)

[Q1 2024 Overview and Corporate Highlights](index=1&type=section&id=Fortress%20Biotech%20Reports%20First%20Quarter%202024%20Financial%20Results%20and%20Recent%20Corporate%20Highlights) [CEO's Statement](index=1&type=section&id=CEO's%20Statement) The CEO highlighted **7% product revenue growth** in Q1 2024, driven by flagship products, alongside key regulatory milestones and anticipated approvals - Product revenue grew **7% year-over-year** in Q1, primarily driven by **over 20% growth** in flagship products Qbrexza and Accutane[2](index=2&type=chunk) - The company's late-stage pipeline may yield up to **three regulatory approvals** within the next 12 months, with a potential fourth BLA filing as early as 2025[1](index=1&type=chunk)[2](index=2&type=chunk) - Multiple data readouts are anticipated in 2024, including topline data for AJ201, Phase 1b data for dotinurad, and Phase 2 data for Triplex[2](index=2&type=chunk) [Recent Corporate Highlights](index=2&type=section&id=Recent%20Corporate%20Highlights) Significant pipeline progress reported, encompassing regulatory milestones, clinical advancements, commercial performance, and financing [Regulatory Milestones and Updates](index=2&type=section&id=Regulatory%20Milestones%20and%20Updates) Fortress achieved key regulatory milestones, including DFD-29 NDA acceptance, CUTX-101 submission, and planned cosibelimab BLA resubmission - The FDA accepted the New Drug Application (NDA) for DFD-29 for treating rosacea, with a PDUFA goal date of **November 4, 2024**[1](index=1&type=chunk)[6](index=6&type=chunk) - The rolling NDA submission for CUTX-101 is ongoing and expected to be completed in **2024**[6](index=6&type=chunk) - Following a Complete Response Letter (CRL) for cosibelimab citing third-party manufacturing issues, a BLA resubmission is targeted for **mid-year 2024**[6](index=6&type=chunk) - Partner AstraZeneca estimates it may submit the BLA for CAEL-101 for AL amyloidosis for FDA review as early as **2025**[6](index=6&type=chunk) [Clinical Updates](index=2&type=section&id=Clinical%20Updates) Several clinical programs advanced, including Triplex Phase 2 enrollment, new Triplex study initiation, and anticipated dotinurad data - The Phase 2 clinical trial of Triplex in adults co-infected with HIV and CMV is fully enrolled, with topline data expected in **Q4 2024**[6](index=6&type=chunk) - The first patient was dosed in a multi-center Phase 2 study of Triplex for CMV control in liver transplant patients, funded by an NIH grant of **over $20 million**[2](index=2&type=chunk)[6](index=6&type=chunk) - Data from the ongoing Phase 1b clinical trial of dotinurad for gout and hyperuricemia is expected in **mid-2024**[2](index=2&type=chunk)[6](index=6&type=chunk) [Commercial Product Updates](index=2&type=section&id=Commercial%20Product%20Updates) Journey Medical reported **$13.0 million** in total revenues for Q1 2024, representing a **7% increase** year-over-year Journey Medical Total Revenues | Company | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Journey Medical | Total Revenues | $13.0 million | $12.2 million | +7% | [General Corporate](index=3&type=section&id=General%20Corporate) Fortress and partner companies completed several financing activities in early 2024, securing significant capital - In January 2024, Fortress raised gross proceeds of approximately **$11.0 million** in a registered direct offering[9](index=9&type=chunk) - Partner companies Checkpoint and Avenue raised approximately **$14.0 million** and **$5.0 million**, respectively, in January 2024[9](index=9&type=chunk) - Subsequent to Q1, in May 2024, Avenue raised approximately **$4.4 million** and Mustang raised approximately **$4.0 million**[9](index=9&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) [First Quarter 2024 Financial Performance](index=3&type=section&id=First%20Quarter%202024%20Financial%20Performance) Fortress reported **$13.0 million** in Q1 2024 net revenue, reduced operating expenses, and a net loss of **$17.7 million** Key Financial Highlights | Financial Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Consolidated Net Revenue** | $13.0 million | $12.4 million | | **R&D Expenses** | $24.8 million | $39.5 million | | **SG&A Costs** | $17.9 million | $25.3 million | | **Net Loss (to common stockholders)** | $(17.7) million | $(23.5) million | | **Net Loss per Share** | $(1.03) | $(3.47) | Consolidated Cash Position | Cash Position | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Consolidated Cash** | $85.8 million | $83.4 million | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Fortress Biotech reported total assets of **$164.6 million**, liabilities of **$168.6 million**, and a stockholders' deficit of **$3.9 million** Condensed Consolidated Balance Sheet Summary | Balance Sheet Item ($ in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $83,774 | $80,927 | | Total Assets | $164,645 | $167,526 | | Total Liabilities | $168,582 | $165,939 | | Total stockholders' equity (deficit) | $(3,937) | $1,587 | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, the company reported **$13.0 million** net revenue, reduced operating expenses, and an improved net loss of **$17.7 million** Condensed Consolidated Statements of Operations Summary | Statement of Operations ($ in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net revenue | $13,030 | $12,429 | | Total operating expenses | $49,596 | $71,296 | | Loss from operations | $(36,566) | $(58,867) | | Net loss attributable to common stockholders | $(17,731) | $(23,545) | | Net loss per common share | $(1.03) | $(3.47) |