Fortress Biotech(US:FBIO)2025-03-26 23:39Financial Data and Key Metrics Changes - Journey Medical reported annual revenue of $56 million in 2024, a decrease from $79 million in 2023, primarily due to higher rebate costs and lower unit volumes from legacy products [10][26] - Total net product revenue for 2024 was $55.1 million, down from $59.7 million in 2023 [26] - The net loss for 2024 was $14.7 million, or $0.72 per share, compared to a net loss of $3.9 million, or $0.21 per share in 2023 [30] - Non-GAAP adjusted EBITDA for 2024 was positive $800,000, down from $15.6 million in 2023 [31][32] - Cash and cash equivalents as of December 31, 2024, were $20.3 million, down from $27.4 million at the end of 2023 [32] Business Line Data and Key Metrics Changes - Research and development expenses increased by $2.3 million to $9.9 million in 2024, driven by non-recurring payments related to Emrosi's NDA filing [28][29] - Selling, general and administrative (SG&A) expenses decreased by $3.7 million to $40.2 million in 2024, attributed to expense optimization efforts [30] Market Data and Key Metrics Changes - Emrosi is entering a treatment category valued at over $1 billion, with expectations for significant operating leverage as it gains market traction [13][14] - As of early 2025, approximately 20% of commercial lives and 4% of Medicare lives have coverage for Emrosi, with expectations for substantial increases throughout the year [18][19] Company Strategy and Development Direction - The company is focused on the launch of Emrosi, which is expected to be a major growth driver, with peak annual sales estimated at $200 million in the U.S. and $100 million internationally [34] - Journey Medical plans to continue attending and presenting at dermatology-focused medical congresses throughout 2025 to promote Emrosi [23][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the launch of Emrosi and its potential to transform the business, highlighting the positive reception from dermatologists at recent conferences [15][17] - The company anticipates a ramp-up in payer coverage and prescription demand over the next 12 to 18 months [40][41] Other Important Information - Journey Medical completed a total of $22 million in FDA filing fees and milestone payments related to Emrosi in 2024 [11] - The company has received a $1 million milestone payment following regulatory approval for Amzeeq in China [27] Q&A Session Summary Question: What should be expected for payer coverage by the end of 2025? - Management expects peak commercial coverage to take 12 to 18 months, with ongoing efforts to increase covered lives [38][40] Question: How important was the erythema data to KOLs at AAD? - The head-to-head performance data was of significant interest, while erythema data was not a primary focus [42][44] Question: Thoughts on 2025 guidance? - Guidance for 2025 will be provided later in the year after assessing initial Emrosi prescription demand [52][54] Question: How has the reimbursement environment been? - Early indications show that around 20% coverage is on target, with prescriptions starting to come in [56][57] Question: Will Q1 report meaningful revenues from Emrosi? - Minimal revenues are expected in Q1, with more significant contributions anticipated in Q2 [59] Question: How is pricing across the legacy portfolio expected to change? - Pricing for legacy brands is expected to hold steady, with some erosion in volume due to competition [80][81] Question: What are the main bottlenecks for the Emrosi launch? - Supply and formulary coverage are key areas of focus, with ample supply already secured [86][88] Question: Will there be any pricing moves by competitors post-launch? - No significant pricing movements from competitors have been observed since the launch [104]