Fortress Biotech: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Nov. 12, 2026, Fortress Biotech (NASDAQ:FBIO) reported total quarterly revenue of $19 million. Expanding commercial coverage and prescription volume for core dermatology products determine whether the business turns permanently cash flow positive. Three takeaways from management explain where the business stands today.

1. Clinical Trial Data Shows Emrosi Outperforms Competing Rosacea Treatments

Clinical trial data indicates that 30% of patients achieved clear skin with Emrosi, a prescription treatment for rosacea, compared to 12.8% for competing drug Oracea. Higher symptom clearance directly drives prescription refills because patients who achieve full clearance stay symptom-free longer.

With over 2.5x more patients achieving clear skin with Emrosi compared to Oracea, we believe that these data are compelling and significantly support Emrosi's best-in-class clinical profile.
-- Claude Maraoui, Co-Founder, President and Chief Executive Officer

2. Expanding Health Plan Formularies Increases Reimbursed Prescription Sales

Commercial coverage reached 40% of target market lives, meaning insurance plans reimburse prescriptions with minimal patient step-edits. Securing positions on health plan formularies--approved health insurance drug lists--lets the company collect higher net prices per prescription instead of covering copay assistance costs.

Currently, 40% of commercial lives have high-quality access to Emrosi. Building on our progress, a large national health plan placed Emrosi on its formulary in early August, and we expect another larger national plan to adopt Emrosi on formulary shortly.
-- Claude Maraoui, Co-Founder, President and Chief Executive Officer

3. Non-GAAP Profitability Reaches Positive Territory as Revenue Outpaces Expenses

The company achieved positive non-GAAP adjusted EBITDA--earnings before interest, taxes, depreciation, and amortization, adjusted for stock compensation--due to lower manufacturing costs for its main drug. Operating leverage expands as product revenue outpaces operational spending, even after absorbing a one-time $1.7 million vendor dispute settlement.

Notably, adjusted EBITDA, which is generally our EBITDA number less noncash share-based compensation expense, reflected net income of $3.5 million for the third quarter compared to $1.4 million for the prior year quarter.
-- Joseph Benesch, Chief Financial Officer

Looking Ahead

Prescription volume is building momentum across key sales territories, backed by clinical differentiation and field execution.

Emrosi continues to gain traction in the rosacea treatment market with growing prescription demand and the base of new prescribers still increasing at an impressive rate.
-- Claude Maraoui, Co-Founder, President and Chief Executive Officer

Expanding direct sales coverage and securing national health plan additions provide structural advantages for long-term growth. Management is watching formulary pull-through and prescriber adoption to strengthen pricing discipline and secure market leadership.

Given Emrosi's superior efficacy profile and potential for the drug to be added to the consensus treatment guidelines, we remain focused on making Emrosi the oral standard of care for rosacea treatment.
-- Claude Maraoui, Co-Founder, President and Chief Executive Officer

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