Full Press Release Details
Fortress Biotech Reports Financial Results
for the Fourth Quarter and Year Ended
New York, NY - March 15, 2016
- Fortress Biotech, Inc. (NASDAQ: FBIO) announces its financial results for the fourth quarter and year ended December 31,
Dr. Lindsay A. Rosenwald, Fortress Biotech's
Chairman, President and CEO, said, "2015 was a transformational year for Fortress Biotech both strategically and operationally.
We continued to make progress executing our unique business plan of creating a portfolio of marketed and development-stage products
under one umbrella. We believe this combination will enhance shareholder value. As a result of our aggressive efforts in 2015,
Fortress Biotech now has several subsidiaries, or Fortress Companies, focused on a number of important, growing therapeutic areas.
We plan to expand the number of Fortress Companies and expect to see continued advancement of our current pipeline as well as revenue
growth in 2016 and beyond."
Financial Highlights:
Recent Corporate Events:
Avenue Therapeutics, Inc.
Checkpoint Therapeutics, Inc.
Escala Therapeutics, Inc.
About Fortress Biotech
Fortress Biotech, Inc. ("Fortress"
or "the Company") is a biopharmaceutical company dedicated to acquiring, developing and commercializing novel pharmaceutical
and biotechnology products. Fortress plans to develop and commercialize products both within Fortress and through subsidiary companies,
also known as Fortress Companies. In addition to its internal development programs, the Company will leverage its biopharmaceutical
business expertise and drug development capabilities to help the Fortress Companies achieve their goals. Additionally, the
Company will provide funding and management services to each of the Fortress Companies and, from time to time, the Company and
the Fortress Companies will seek licensing, partnerships, joint ventures and/or public and private financings to accelerate and
provide additional funding to support their research and development programs. For more information, visit www.fortressbiotech.com.
Forward-Looking Statements
This press release may contain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Such statements include, but are not limited to, any statements relating to our growth strategy and product development
programs and any other statements that are not historical facts. Forward-looking statements are based on management's current
expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial
condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: risks
related to our growth strategy; our ability to obtain, perform under and maintain financing and strategic agreements and relationships;
our ability to identify, acquire, close and integrate product candidates successfully and on a timely basis; risks relating to
the results of research and development activities; uncertainties relating to preclinical and clinical testing; our dependence
on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development;
our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well
as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates
or revisions to any forward looking statements contained herein to reflect any change in our expectations or any changes in events,
conditions or circumstances on which any such statement is based, except as required by law.
Lucy Lu, MD, Executive Vice President & Chief Financial
Fortress Biotech, Inc.
781-652-4525; ir@fortressbiotech.com
FORTRESS BIOTECH, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
($ in thousands except for share and
| As of December 31, | ||||||||
| 2015 | 2014 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 98,182 | $ | 49,759 | ||||
| Marketable securities, at fair value | - | 20,002 | ||||||
| Prepaid expenses and other current assets | 1,597 | 702 | ||||||
| Total current assets | 99,779 | 70,463 | ||||||
| Property and equipment, net | 309 | 52 | ||||||
| Restricted cash | 14,586 | 14,586 | ||||||
| Long-term investments, at fair value | 2,485 | 4,160 | ||||||
| Intangible asset - license | 1,250 | - | ||||||
| Other assets | 201 | 64 | ||||||
| Total assets | $ | 118,610 | $ | 89,325 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,868 | $ | 366 | ||||
| Accrued expenses | 8,570 | 3,683 | ||||||
| Interest payable | 27 | 28 | ||||||
| Derivative warrant liability | 114 | - | ||||||
| Total current liabilities | 10,579 | 4,077 | ||||||
| Notes payable, long-term (net of debt discount of $835 and $6 at December 31, 2015 and December 31, 2014, respectively) | 23,174 | 14,003 | ||||||
| Other long-term liabilities | 584 | 722 | ||||||
| Total liabilities | 34,337 | 18,802 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Convertible Preferred stock, $.001 par value, 129,767 Series C shares authorized, 0 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | - | - | ||||||
| Common Stock, $.001 par value, 100,000,000 shares authorized, 47,147,032 and 46,494,034 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | 47 | 46 | ||||||
| Additional paid-in-capital | 246,955 | 212,205 | ||||||
| Accumulated deficit | (190,156 | ) | (141,728 | ) | ||||
| Total stockholders' equity attributed to the Company | 56,846 | 70,523 | ||||||
| Non-controlling interests | 27,427 | - | ||||||
| Total stockholders' equity | 84,273 | 70,523 | ||||||
| Total liabilities and stockholders' equity | $ | 118,610 | $ | 89,325 |
FORTRESS BIOTECH, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Operations
($ in thousands except for share and
| For the Years Ended December 31, | ||||||||||||
| 2015 | 2014 | 2013 | ||||||||||
| Revenue | $ | 273 | $ | - | $ | - | ||||||
| Revenue - from a related party | 590 | - | - | |||||||||
| Total revenue | 863 | - | - | |||||||||
| Operating expenses | ||||||||||||
| Research and development | 18,402 | 10,239 | 25,682 | |||||||||
| Research and development - licenses acquired | 11,408 | - | - | |||||||||
| General and administrative | 21,584 | 10,413 | 10,098 | |||||||||
| Total operating expenses | 51,394 | 20,652 | 35,780 | |||||||||
| Loss from operations | (50,531 | ) | (20,652 | ) | (35,780 | ) | ||||||
| Other income (expenses) | ||||||||||||
| Interest income | 245 | 662 | 545 | |||||||||
| Interest expense | (1,484 | ) | (1,338 | ) | (1,923 | ) | ||||||
| Change in fair value of subsidiary's warrant liabilities | (438 | ) | - | - | ||||||||
| Change in fair value of investments | (1,675 | ) | 942 | - | ||||||||
| Total other income (expenses) | (3,352 | ) | 266 | (1,378 | ) | |||||||
| Net loss | (53,883 | ) | (20,386 | ) | (37,158 | ) | ||||||
| Less: net loss attributable to non-controlling interests | 5,455 | - | - | |||||||||
| Net loss attributable to common stockholders | $ | (48,428 | ) | $ | (20,386 | ) | $ | (37,158 | ) |