Fortress Biotech Inc ((FBIO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Fortress Biotech Inc’s recent earnings call painted a picture of robust growth and optimism, despite some hurdles. The company celebrated significant revenue growth, driven by the successful launch of EMROSI, which has shown promising results in the market. However, challenges such as declining legacy product revenues and delays in health plan formulary adoption for EMROSI were also acknowledged. Overall, the sentiment was positive, with a strong belief in EMROSI’s potential and future revenue growth.
Significant Revenue Growth
Journey Medical, a subsidiary of Fortress Biotech, reported a remarkable 21% year-over-year revenue growth for the third quarter of 2025. The revenue reached $17.6 million, up from $14.9 million in the same quarter of the previous year. This growth underscores the company’s successful strategies and market penetration.
EMROSI’s Strong Performance
EMROSI, the company’s oral treatment for rosacea, contributed significantly to the revenue, adding $4.9 million to the top line in Q3. This marks a 75% increase from the previous quarter, with total prescription growth of approximately 146%, highlighting the product’s strong market acceptance and potential.
Positive EBITDA Trends
The company reported an improvement in non-GAAP EBITDA, which increased by $500,000 year-over-year. The adjusted EBITDA for Q3 2025 was $1.7 million, compared to $300,000 in Q3 2024, reflecting improved operational efficiency and financial health.
Increased Prescriber Base for EMROSI
The number of unique prescribers for EMROSI increased by approximately 50%, reaching over 2,700. This indicates a strong adoption rate among dermatologists and enhances the product’s market presence.
Market Access Achievements
Journey Medical has achieved significant market access, with over 100 million of the 187 million commercial lives having access to EMROSI. The company plans to contract with the remaining major group purchasing organizations early next year, further expanding its reach.
Decline in Legacy Product Revenues
Revenues from legacy products like Qbrexza, Accutane, Amzeeq, and Zilxi declined by 16% year-over-year. This decline is attributed to generic competition, particularly impacting Accutane.
Slight Decrease in Gross Margin
The gross margin slightly decreased to 67.4% in Q3 2025 from 69.4% in the previous year. This was primarily due to changes in product mix, reflecting the evolving market dynamics.
Challenges with Health Plan Formulary Adoption
EMROSI’s adoption into health plan formularies is progressing slowly, impacting immediate coverage. This has increased reliance on the co-pay assistance program, posing a challenge to the company’s short-term financial strategy.
Forward-Looking Guidance
Journey Medical’s guidance for the future remains optimistic, driven by the successful launch of EMROSI. The company expects to become sustainably EBITDA positive by Q4 and anticipates peak annual net sales of over $200 million in the U.S. and over $300 million globally for EMROSI. The strategic focus on payer strategy and market access is expected to continue supporting revenue growth.
In summary, Fortress Biotech’s earnings call reflected a positive outlook with strong revenue growth and promising performance from EMROSI. Despite challenges such as declining legacy product revenues and formulary adoption delays, the company remains optimistic about its future prospects, driven by strategic initiatives and market expansion efforts.