Full Press Release Details
Fortress Biotech Reports Second Quarter
2016 Financial Results and Recent Corporate Highlights
-Quarter Milestones Include Commercialization
of First Two Products-
New York, NY - August 9, 2016 - Fortress
Biotech, Inc. (NASDAQ: FBIO) ("Fortress"), a biopharmaceutical company dedicated to acquiring,
developing and commercializing novel pharmaceutical and biotechnology products, today announced its financial results and recent
corporate highlights for the quarter ended June 30, 2016.
Dr. Lindsay A. Rosenwald, Chairman, President
and CEO of Fortress, said, "During the second quarter of 2016, we attained several milestones, including the commercialization
of our first two products from Journey Medical Corporation's ("Journey") dermatology franchise: Luxamend
Wound Cream and Ceracade Skin Barrier Emulsion.
Our subsidiary Checkpoint Therapeutics,
Inc. ("Checkpoint Therapeutics") also acquired an exclusive, worldwide license to BRD4-inhibiting (from the Bromodomain
and Extra-Terminal motif ("BET") inhibitor class of anti-cancer proteins) compounds for solid tumors from Jubilant
Biosys Limited ("Jubilant"). In addition, Checkpoint Therapeutics entered a sublicense agreement with TG Therapeutics,
Inc., a related party ("TG Therapeutics"), to develop and commercialize the BRD4-inhibiting
compounds for hematological malignancies, while Checkpoint Therapeutics retains the right to develop and commercialize these compounds
for solid tumors. We believe clinical and corporate developments such as these will help position us to diversify our pipeline
during the second half of 2016."
Recent Corporate Highlights:
Checkpoint Therapeutics
Journey Medical Corporation
About Fortress Biotech
Fortress Biotech, Inc. ("Fortress")
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. Fortress intends to leverage its biopharmaceutical business expertise and drug development capabilities to help
the Fortress Companies achieve their goals. Additionally, Fortress intends to provide funding and management services to each
of the Fortress Companies and, from time to time, Fortress and the Fortress Companies will seek licensing, acquisitions, 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, potential acquisitions, 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 continue to commercialize products; our ability to identify, acquire, close and integrate product
candidates and companies successfully and on a timely basis; our need for substantial additional funds; our ability to obtain,
perform under and maintain financing and strategic agreements and relationships; 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; government regulation;
patent and intellectual property matters; competition; and 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
Lucy Lu, MD, Executive Vice President &
Chief Financial Officer
Fortress Biotech, Inc.
781-652-4525; ir@fortressbiotech.com
INC. AND SUBSIDIARIES
Condensed Consolidated
except for share and per share amounts)
| June 30, | December 31, | |||||||
| 2016 | 2015 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 71,336 | $ | 98,182 | ||||
| Accounts receivable | 967 | - | ||||||
| Inventory | 100 | - | ||||||
| Other receivables - related party | 2,570 | 156 | ||||||
| Prepaid expenses and other current assets | 1,579 | 1,599 | ||||||
| Total current assets | 76,552 | 99,937 | ||||||
| Property and equipment, net | 4,535 | 309 | ||||||
| Restricted cash | 14,586 | 14,586 | ||||||
| Long-term investments, at fair value | 766 | 2,485 | ||||||
| Intangible asset - license | 1,579 | 1,250 | ||||||
| Other assets | 44 | 43 | ||||||
| Total assets | $ | 98,062 | $ | 118,610 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 5,126 | $ | 1,868 | ||||
| Accrued expenses | 8,883 | 8,570 | ||||||
| Interest payable | 26 | 27 | ||||||
| Derivative liabilities | 302 | 114 | ||||||
| Total current liabilities | 14,337 | 10,579 | ||||||
| Notes payable, long-term (net of debt discount of $412 and $835 at June 30, 2016 and December 31, 2015, respectively) | 20,805 | 23,174 | ||||||
| Convertible note, at fair value | 1,000 | - | ||||||
| Other long-term liabilities | 3,706 | 584 | ||||||
| Total liabilities | 39,848 | 34,337 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Convertible Preferred stock, $.001 par value, 129,767 Series C shares authorized, 0 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | - | - | ||||||
| Common Stock, $.001 par value, 100,000,000 shares authorized, 48,668,630 and 47,147,032 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | 49 | 47 | ||||||
| Additional paid-in-capital | 250,127 | 246,955 | ||||||
| Accumulated deficit | (214,839 | ) | (190,156 | ) | ||||
| Total stockholders' equity attributed to the Company | 35,337 | 56,846 | ||||||
| Non-controlling interests | 22,877 | 27,427 | ||||||
| Total stockholders' equity | 58,214 | 84,273 | ||||||
| Total liabilities and stockholders' equity | $ | 98,062 | $ | 118,610 |
FORTRESS BIOTECH, INC.
Condensed Consolidated
Statements of Operations
($ in thousands except
for share and per share amounts)
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Product revenue, net | $ | 981 | $ | - | $ | 1,364 | $ | - | ||||||||
| Revenue - from a related party | 1,249 | - | 1,526 | 500 | ||||||||||||
| Total revenue | 2,230 | - | 2,890 | 500 | ||||||||||||
| Cost of goods sold - product revenue | 324 | - | 324 | - | ||||||||||||
| Gross margin | 1,906 | - | 2,566 | 500 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 6,347 | 2,411 | 14,100 | 4,066 | ||||||||||||
| Research and development - licenses acquired | 2,060 | 1,548 | 2,143 | 8,987 | ||||||||||||
| General and administrative | 8,635 | 3,803 | 16,550 | 7,280 | ||||||||||||
| Total operating expenses | 17,042 | 7,762 | 32,793 | 20,333 | ||||||||||||
| Loss from operations | (15,136 | ) | (7,762 | ) | (30,227 | ) | (19,833 | ) | ||||||||
| Other income (expenses) | ||||||||||||||||
| Interest income | 77 | 74 | 152 | 156 | ||||||||||||
| Interest expense and financing fee | (529 | ) | (352 | ) | (1,149 | ) | (683 | ) | ||||||||
| Change in fair value of derivative liabilities | - | - | (89 | ) | - | |||||||||||
| Change in fair value of investments | (801 | ) | 1,622 | (1,719 | ) | 1,407 | ||||||||||
| Total other income (expenses) | (1,253 | ) | 1,344 | (2,805 | ) | 880 | ||||||||||
| Net loss | (16,389 | ) | (6,418 | ) | (33,032 | ) | (18,953 | ) | ||||||||
| Less: net loss attributable to non-controlling interests | 3,911 | 243 | 8,349 | 722 | ||||||||||||
| Net loss attributable to common stockholders | $ | (12,478 | ) | $ | (6,175 | ) | $ | (24,683 | ) | $ | (18,231 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.31 | ) | $ | (0.16 | ) | $ | (0.62 | ) | $ | (0.47 | ) | ||||
| Weighted average common shares outstanding-basic and diluted | 39,867,724 | 39,119,606 | 39,762,956 | 38,848,660 |