Fortress Biotech(US:FBIO)2025-03-31 20:15Financial Performance - Total net revenue for the years ended December 31, 2024 and 2023 was $57.7 million and $84.5 million, respectively, with net product revenue from Journey's commercial portfolio at $55.1 million and $59.7 million[394]. - For the year ended December 31, 2024, the company generated net revenue of $57.7 million, a decrease of $26.8 million or 32% from $84.5 million in 2023[428]. - Product revenue decreased by $4.5 million or 8% to $55.1 million, primarily due to higher managed care rebate costs and lower unit volumes from legacy products[429]. - The company reported a net loss of $120.9 million for 2024, a reduction of $33.3 million or 22% compared to a net loss of $154.2 million in 2023[425]. - Total operating expenses decreased by $58.8 million or 26% to $168.1 million in 2024 from $226.9 million in 2023[425]. - The cost of goods sold decreased by $2.0 million or 9% to $20.9 million in 2024, attributed to lower royalties and a decrease in sales[430]. - Collaboration revenue fell by $3.7 million or 71% to $1.5 million in 2024, compared to $5.2 million in 2023[426]. - The total cash decrease for the year ended December 31, 2024, was $24.6 million, compared to a decrease of $97.6 million in 2023, reflecting a significant improvement of $73.0 million[486]. Research and Development - Research and development expenses were approximately $56.6 million in 2024, down $45.1 million or 44% from $101.7 million in 2023[434]. - The company expects research and development costs to decrease in 2025[439]. - Research and development expenses for licenses acquired dropped by $4.1 million or 94% to $252,000 in 2024, due to the absence of comparable transactions[440]. - Stock-based compensation expense included in R&D increased by $3.9 million or 120% to $7.1 million in 2024, primarily due to performance-based vesting at Checkpoint[437]. Equity and Financing Activities - Fortress raised total net proceeds of approximately $21.1 million through equity offerings throughout 2024[412]. - Checkpoint raised total net proceeds of approximately $32.8 million through equity offerings and warrant exercises throughout 2024[412]. - Mustang raised total net proceeds of approximately $11.2 million through equity offerings and warrant exercises throughout 2024[412]. - Avenue raised total net proceeds of approximately $9.8 million through equity offerings and warrant exercises throughout 2024[412]. - Fortress entered into a new $50 million term loan with Oaktree Capital Management, borrowing $35 million initially and having the option to draw an additional $15 million[406]. - Fortress entered into a $50.0 million senior secured credit agreement in July 2024, borrowing $35.0 million initially, with a maturity date of July 25, 2027[481]. - Journey entered into a Credit Agreement with SWK Funding LLC for a term loan facility of up to $25 million, with $15 million drawn on December 27, 2023, and the remaining $10 million drawn upon FDA approval of Emrosi[485]. Regulatory Approvals and Product Developments - Checkpoint received FDA approval for UNLOXCYT (cosibelimab-ipdl) for the treatment of metastatic or locally advanced cutaneous squamous cell carcinoma on December 13, 2024[394]. - Emrosi (Minocycline Hydrochloride Extended-Release Capsules) was approved by the FDA in November 2024 for the treatment of inflammatory lesions of rosacea, with a launch planned for March 2025[394]. - Cyprium announced that the FDA accepted the NDA for CUTX-101 for priority review, with a target action date of September 30, 2025[398]. - Mustang's MB-101 CAR T-cell therapy showed a 50% stable disease or better rate in high-grade glioma patients, with two complete responses lasting over 66 months[402]. - Updated data for MB-106 indicated a 90% overall response rate in patients with Waldenstrom macroglobulinemia, including three complete responses[402]. Cash Flow and Liquidity - Net cash used in operating activities decreased by $48.0 million from 2023 to 2024, primarily due to a decrease in net loss of $33.3 million and a one-time recovery payment of $4.6 million[487]. - Net cash used by investing activities increased from $2.1 million in 2023 to $15.0 million in 2024, due to a $15 million milestone payment triggered by FDA approval of Emrosi[488]. - Net cash provided by financing activities increased by $37.9 million from 2023 to 2024, driven by proceeds from long-term debt of $33.7 million and common stock issuance of $17.4 million[490]. - The company reported a net cash outflow from operating activities of $80.2 million for the year ended December 31, 2024, compared to $128.2 million in 2023[491]. Stock and Shareholder Actions - Fortress announced a pause in dividend payments on its 9.375% Series A Preferred Stock, deferring approximately $0.7 million in cash dividends each month[406]. - Mustang executed a 1-for-50 reverse stock split to comply with Nasdaq listing requirements[406]. - Avenue's common stock began trading under the symbol "ATXI" on the OTC Markets system after receiving a notice of suspension from Nasdaq[406]. - Journey issued approximately 1.6 million shares of common stock at an average price of $5.19 per share for net proceeds of $7.9 million in 2024[461]. - Checkpoint received approximately $9.2 million from the exercise of Series B warrants to purchase 3,256,269 shares of common stock in November 2024[463]. - Checkpoint closed a registered direct offering in July 2024, issuing 1,230,000 shares at $2.05 per share, raising approximately $11.0 million in net proceeds[464]. - Mustang sold approximately $4.4 million of securities under its 2021 S-3 registration statement in 2024, prior to its expiration[466]. - Avenue raised approximately $4.5 million from the exercise of existing warrants in January 2024, after deducting fees[477]. Other Significant Events - Journey received a $19.0 million upfront payment for the exclusive license of certain rights relating to Qbrexza in Asia, included in total net revenue for 2023[394]. - Urica entered into a transaction with Crystalys Therapeutics, transferring rights to dotinurad and receiving 35% equity in Crystalys along with a 3% royalty on future net sales[402]. - Fortress's Board of Directors approved a workforce reduction of approximately 81% to reduce costs and preserve capital[412]. - Mustang recorded an asset impairment of $3.7 million in 2024, a 17% increase from the $3.1 million impairment in 2023[449]. - Journey recorded a loss recovery benefit of $4.6 million related to a cybersecurity incident, received in cash in December 2024[448]. - Total other expense decreased by $1.1 million, or 10%, from $11.3 million in 2023 to $10.2 million in 2024[452]. - As of December 31, 2024, the company had cash and cash equivalents of $57.3 million, with $20.9 million related to Fortress and private subsidiaries[454].