Fortress Biotech's Q4 2024: Key Contradictions Unveiled in Emrosi Launch and Pricing Strategies

These are the key contradictions discussed in Fortress Biotech's latest 2024Q4 earnings call, specifically including: Emrosi Market Access and Pricing Strategy, Supply Chain and Production Capabilities, Emrosi Market Access and Payer Coverage, and Pricing Strategy for the Product Portfolio:



Financial Performance and EBITDA:
- Journey Medical reported annual revenue of $56 million for 2024, with positive non-GAAP adjusted EBITDA for six consecutive quarters.
- The financial performance was driven by meeting all financial guidance ranges for the year and achieving Emrosi's FDA approval.

Emrosi Launch and Market Access:
- The company has achieved 20% coverage of commercial lives and 4% of Medicare lives for Emrosi, expected to increase significantly throughout 2025.
- The strong market access is attributed to the product's superior Phase 3 clinical results and positive payer response to the head-to-head studies.

Regulatory and Development Milestones:
- Journey Medical paid out $22 million in FDA filing fees and milestone payments, comprehensively fulfilling Emrosi's regulatory and development obligations.
- This clears the way for Emrosi's commercial debut and potential revenue growth.

Research and Development Investments:
- Research and development expenses increased by $2.3 million to $9.9 million in 2024, primarily due to non-recurring payments for Emrosi's NDA filing.
- The increase was offset by lower clinical trial expenses as the Emrosi Phase 3 program was concluded in 2023.