Fortress Biotech delivered robust third-quarter 2025 financial results, reporting a 20.5% increase in net revenue to $17.6 million compared to $14.6 million in the same period last year. The biopharmaceutical company's diversified business model continued to generate value through strategic asset monetization and advancing clinical programs across oncology, dermatology, and rare diseases.
Strategic Asset Monetization Drives Value Creation
The company achieved significant milestones through two major subsidiary acquisitions in 2025. Sun Pharmaceutical Industries acquired Fortress subsidiary Checkpoint Therapeutics for an aggregate upfront payment of approximately $355 million, with Fortress receiving approximately $28 million at closing. The deal structure includes potential additional payments of up to $4.8 million through a contingent value right (CVR) and a 2.5% royalty on future net sales of UNLOXCYT (cosibelimab-ipdl).
In November 2025, Axsome Therapeutics acquired Baergic Bio through Avenue Therapeutics, with Baergic shareholders receiving $0.3 million upfront and eligibility for milestone payments up to $2.5 million for the first indication of AXS-17 (formerly BAER-101), plus $1.5 million for each additional indication. The agreement includes up to $79 million in potential sales-based milestones and tiered mid-to-high single-digit royalties on global net sales.
Dotinurad Advances in Phase 3 Gout Trials
Dotinurad, a next-generation URAT1 inhibitor, reached a critical development milestone with first patient dosing in two randomized, double-blind, multicenter global Phase 3 trials in October 2025. The once-daily oral treatment is being evaluated for gout with potential for best-in-class safety and efficacy profiles.
The advancement was supported by Crystalys Therapeutics' $205 million Series A financing announced in the third quarter of 2025. Urica Therapeutics, a majority-owned Fortress subsidiary, maintains an equity position in Crystalys and is eligible to receive a 3% royalty on future net sales of dotinurad following the strategic asset transfer completed last year.
Dermatology Portfolio Shows Strong Commercial Performance
Journey Medical Corporation generated $17.0 million in net product revenues for the third quarter, compared to $14.6 million in the same period of 2024. The subsidiary's rosacea treatment Emrosi demonstrated significant clinical advancement with pooled Phase 3 data presented at the 2025 Fall Clinical Dermatology Conference.
The pooled analysis of two Phase 3 multicenter, randomized, double-blind, parallel-group trials evaluating DFD-29 (40 mg Minocycline Hydrochloride Modified-Release Capsules) showed superior efficacy in Investigator's Global Assessment treatment success rates and inflammatory lesion counts versus both placebo and doxycycline (P<0.001 for all comparisons).
Commercial expansion accelerated with payer access reaching over 100 million commercial lives in the United States by July 2025, nearly doubling from 54 million lives in May 2025.
Regulatory and Clinical Pipeline Updates
The FDA granted Orphan Drug Designation to Mustang Bio for MB-101 (IL13Ra2-targeted CAR T-cells) in July 2025 for treating recurrent diffuse and anaplastic astrocytoma and glioblastoma. The designation was broader than the proposed indication, and the company plans to advance MB-101 in combination with MB-108 oncolytic virus to reshape the tumor microenvironment and potentially improve CAR-T cell therapy efficacy.
CUTX-101 (copper histidinate) for Menkes disease received a Complete Response Letter from the FDA on September 30, 2025, citing cGMP deficiencies at the manufacturing facility. Importantly, the CRL did not identify any deficiencies in CUTX-101's efficacy and safety data, and Sentynl Therapeutics expects to resubmit the NDA shortly. Upon approval, the treatment may qualify for a Priority Review Voucher.
AstraZeneca's anselamimab (formerly CAEL-101) did not achieve statistical significance for the primary endpoint in its Phase III CARES clinical program for Mayo stages IIIa and IIIb AL amyloidosis patients. However, the drug showed clinically meaningful improvement in a prespecified subgroup and was well tolerated, with AstraZeneca planning to submit the subgroup analysis to regulatory authorities.
Financial Position Strengthens
Fortress' consolidated cash and cash equivalents totaled $86.2 million as of September 30, 2025, representing a $28.9 million increase from $57.3 million at December 31, 2024. The improved cash position reflects proceeds from strategic transactions and operational performance.
Consolidated net income attributable to common stockholders reached $3.7 million, or $0.13 per share basic and $0.11 per share diluted, for the third quarter of 2025. This marked a significant improvement from the net loss of $15.0 million, or $0.76 per share, in the third quarter of 2024.
Research and development expenses decreased substantially to $0.2 million for the third quarter of 2025, compared to $9.4 million in the same period of 2024, reflecting the strategic focus on asset monetization and partnership models.
