Fortress Biotech, Inc. reported significant financial changes in its quarterly filing for the period ending September 30, 2024. The company experienced a notable decline in net revenue, which fell to $14.6 million from $34.8 million in the same quarter of 2023, marking a decrease of 58%. This decline was primarily attributed to reduced sales from its dermatology product line, particularly a decrease in revenue from Accutane and Amzeeq, despite an increase in Qbrexza sales.

For the nine months ended September 30, 2024, total net revenue was $42.6 million, down from $64.6 million in 2023, reflecting a 34% decrease. The company’s product revenue for the nine-month period also decreased, primarily due to price erosion from generic competition affecting its legacy products. Operating expenses for the quarter decreased to $36.7 million from $48.5 million, a reduction of 24%, while the loss from operations increased to $22.1 million compared to $13.8 million in the prior year.

The net loss for the quarter was $26.7 million, significantly higher than the $10.7 million loss reported in the same quarter of 2023. For the nine-month period, the net loss was $94.5 million, down from $125.2 million in 2023, indicating a 24% improvement year-over-year. The company attributed this reduction in losses to decreased research and development expenses, which fell by 46% to approximately $46.9 million, driven by cost-cutting measures and a reduction in clinical trial expenses.

Fortress Biotech's cash and cash equivalents decreased to $58.9 million as of September 30, 2024, down from $80.9 million at the end of 2023. The company also reported total liabilities of $139.8 million, a decrease from $165.9 million at the end of the previous year. The total stockholders' equity attributed to the company was $21.2 million, down from $22.5 million.

Strategically, Fortress Biotech entered into a $50 million senior secured credit agreement with Oaktree Fund Administration, borrowing $35 million initially. The company also paused its monthly dividend on Series A Preferred Stock, deferring approximately $0.7 million in cash payments each month, resulting in total undeclared dividends of about $2 million as of September 30, 2024.

The company continues to face challenges, including the need for additional capital for research and development, potential dilution of existing stockholders, and competition from generic products. The approval of Emrosi for treating rosacea, expected to launch in early 2025, may provide a boost to revenue, but the company remains cautious about future profitability and operational sustainability.