On Monday, a Roth/MKM analyst maintained a Buy rating on Fortress Biotech (NASDAQ:FBIO) stock, with a consistent price target of $10.00. The firm highlighted Fortress Biotech's 2023 revenue of $84.5 million, aligning with consensus expectations and showing an increase from the $75.7 million reported in 2022.
The company's financial report disclosed several key milestones anticipated for 2024. These include the submission of DFD-29 for rosacea treatment by Journey Medical, with a PDUFA date set for November 4, and the BLA submission for Cosibelimab, a treatment for cSCC by Checkpoint Therapeutics (NASDAQ:CKPT).
Additionally, Cyprium Therapeutics is expected to receive NDA approval for CUTX-101 for Menkes disease, and Urica Pharmaceuticals is preparing for a Phase 1b readout for Dotinurab in treating gout, with a potential pivotal trial initiation in early 2025. Avenue Therapeutics (NASDAQ:ATXI) is also advancing its AJ201 treatment for SBMA, with a potential pivotal trial initiation slated for 2024.
Fortress Biotech reported a consolidated cash position of $83.4 million as of December 31, 2023, which includes funds attributable to Fortress and its private subsidiaries, as well as to its affiliates Avenue, Checkpoint, Mustang Bio (NASDAQ:MBIO), and Journey Medical. Following the fourth quarter, Fortress Biotech and some of its affiliates successfully raised additional funds through registered direct offerings and warrant exercise transactions in January 2024.
The revenue outlook for 2024 has been adjusted to $88.9 million, down from the previously projected $98.6 million. The revision is primarily due to reduced revenue expectations for Journey Medical, now forecasted at $58 million, a decrease from the prior estimate of $71.0 million, partly because of generic pricing pressures.
Despite this adjustment, the analyst anticipates a significant revenue increase in 2025, driven by contributions from Journey Medical's DFD-29 and Checkpoint Therapeutics' Cosibelimab. These factors, along with other milestones, are expected to potentially push Fortress Biotech's consolidated profit and loss cash flow into positive territory by 2026/2027.
InvestingPro Insights
Fortress Biotech (NASDAQ:FBIO) has been the subject of recent analyst attention following the release of its 2023 financial results. While the company's revenue of $84.5 million for the last twelve months as of Q4 2023 met consensus expectations, InvestingPro data indicates a more nuanced financial landscape.
The company's market capitalization stands at a modest $38.47 million, reflecting a challenging period for the stock. Fortress Biotech's gross profit margin for the same period was notably negative at -57.05%, which aligns with one of the InvestingPro Tips highlighting the company's weak gross profit margins. This could be a point of concern for investors considering the company's ability to convert sales into actual profit.
Moreover, Fortress Biotech's stock price has experienced significant volatility, with a 1-year price total return of -83.74%. The InvestingPro Tips suggest that the stock has not only fared poorly over the last month but has also taken a substantial hit over the last six months, which may be indicative of broader market sentiment towards the company.
For investors seeking a deeper dive into Fortress Biotech's financial health, there are additional InvestingPro Tips available. These tips include analysis on the company's cash burn rate and the anticipation that the company will not be profitable this year. Interested readers can explore these insights and more by visiting InvestingPro for Fortress Biotech at https://www.investing.com/pro/FBIO. To enhance your investing strategy with these expert insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 12 additional InvestingPro Tips that could be crucial for investors looking to make informed decisions about Fortress Biotech.
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