Fortress Biotech (FBIO) investor relations material

Business model and strategy

• Focuses on acquiring and developing clinical-stage medicines with proof of concept in humans, aiming to generate long-term revenue streams through royalties, equity, and milestones.

• Utilizes artificial intelligence to efficiently identify and evaluate over 10,000 drug candidates, significantly reducing the need for large research teams.

• Maintains a diversified portfolio across multiple therapeutic areas, with eight marketed dermatology drugs and nine subsidiaries.

• Creates future royalties by licensing, developing, and structuring deals for clinical-stage assets, targeting both near-term and long-term value.

• Business model is designed to be scalable and aims to avoid future equity raises by relying on cash flow from royalties and milestones.

Recent achievements and monetizations

• Achieved three FDA approvals in the past 18 months, including a pediatric rare disease drug and a best-in-class PD-L1 checkpoint inhibitor.

• Sold a priority review voucher for $205 million and completed a $205 million Series A financing for Urica.

• Monetized assets such as ZYCUBO and UNLOXCYT, generating significant returns relative to investment, with ongoing royalties and milestone payments.

• Sale of Caelum to Alexion/AstraZeneca resulted in $60 million cash and potential for up to $130 million in milestones.

• Proceeds from recent monetizations used to pay off $30 million in debt, reducing annual expenses and supporting positive cash flow.

Key assets and pipeline highlights

• Holds a significant stake in Journey Medical, which recently launched Emrosi for rosacea; reimbursement progress is ongoing and sales have exceeded expectations.

• Dotinurad, a URAT1 inhibitor for gout, is in two phase III trials with a $205 million Series A financing; comparable assets have seen billion-dollar acquisitions.

• Baergic, an epilepsy drug licensed to Axsome, and Helocyte, a vaccine for cytomegalovirus in transplant patients, represent additional late-stage opportunities.

• Anticipates at least one FDA approval from partner companies in 2026–2027, with potential peak sales for candidates ranging from $100 million to over $2 billion.

• Receives 2.5% to 12.5% royalties on most programs and annual equity dividends from subsidiaries.