On Wednesday, Fortress Biotech Inc. (NASDAQ:FBIO) shares saw its price target increased by a market analyst from Roth/MKM, setting a new target of $13.00, up from the previous $10.00, while the Buy rating on the stock was maintained.
The revision follows the company's second-quarter financial report for 2024, which showed a revenue decline of 14.4% to $14.9 million. This figure slightly exceeded the consensus forecast of $14.8 million and outperformed the analyst's expectation of $14.0 million.
Fortress Biotech reported an EPS of ($0.73), which was notably better than the anticipated ($1.22) by the consensus and the ($0.88) forecasted by Roth/MKM.
The analyst highlighted that the biopharmaceutical company is approaching a significant phase with three major drug approvals anticipated in the latter half of 2024.
The first is Journey's DFD-29, with a Prescription Drug User Fee Act (PDUFA) date set for November 4, indicating the date by which the FDA will complete its review of the New Drug Application (NDA).
The second is Checkpoint's cosibelimab, which has a PDUFA date scheduled for December 28. Lastly, Cyprium's CUTX-101 NDA is expected to receive approval in the first half of 2025, and it comes with a Priority Review Voucher (PRV), which can expedite the FDA review process for a future product.
The company's performance and the upcoming PDUFA dates are critical as they represent significant milestones in the drug approval process. The potential approvals could mark a transformative period for Fortress Biotech, offering new treatments in the market and potentially enhancing the company's financial outlook.
The stock's new price target reflects the optimism surrounding these forthcoming events, suggesting a positive outlook from the analyst on the company's growth prospects. Investors will likely watch closely as the PDUFA dates approach, marking important catalysts for the company's stock performance.
In other recent news, Fortress Biotech has secured a new $50 million loan agreement with Oaktree Capital Management. The loan, which allows Fortress to settle its previous term loan with Oaktree ahead of its due date, is expected to enhance the company's capital flexibility. The company has also completed an equity issuance to former Urica holders, distributing over two million shares of common stock.
Mustang Bio (NASDAQ:MBIO), a Fortress subsidiary, has announced a stock offering and private placement expected to yield gross proceeds of approximately $2.5 million.
The company also reported positive results from its Phase 1/2 clinical trial of MB-106, a CAR T-cell therapy for Waldenstrom macroglobulinemia, a rare blood cancer, showing a 90% response rate among participants.
In terms of analyst notes, H.C. Wainwright has significantly raised its price target for Fortress Biotech, while Roth/MKM maintained a Buy rating on the company's stock.
The latter highlighted Fortress Biotech's 2023 revenue of $84.5 million, an increase from the $75.7 million reported in 2022. These recent developments highlight the ongoing activities within Fortress Biotech and Mustang Bio.
InvestingPro Insights
Fortress Biotech Inc. (NASDAQ:FBIO) is navigating through a challenging financial landscape, as reflected in the recent performance metrics. According to InvestingPro data, the company's market capitalization stands at $41.07 million, with a negative price-to-earnings (P/E) ratio, highlighting its current lack of profitability. Despite this, the company's revenue has seen a notable increase of 32.48% over the last twelve months as of Q1 2024, which could indicate potential for future growth, especially if the anticipated drug approvals materialize.
Investors considering Fortress Biotech should note an InvestingPro Tip that points out the company's high shareholder yield, which suggests a return of value to shareholders. Additionally, analysts predict that the company will become profitable this year, which could be a turning point for investor sentiment. However, the company's stock price has experienced significant volatility, with a one-year price total return of -77.32% as of the latest data, signaling a need for cautious optimism.
For those interested in a deeper dive, InvestingPro offers numerous additional tips on Fortress Biotech, providing a more comprehensive understanding of the company's financial health and market position. These insights could prove invaluable as Fortress Biotech approaches its pivotal PDUFA dates and aims to transition into a profitable phase.
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