Fortress Biotech (FBIO) Q3 2026 Earnings Report

The call was strongly positive overall. Management highlighted accelerating Emrosi prescriptions, expanding prescriber adoption, strong refill rates, favorable clinical and safety data, improving payer access, positive EBITDA and a narrowing GAAP loss. The main challenges were the remaining GAAP loss, a lower cash balance, a one-time vendor settlement, temporary prescription volatility following the copay change, ongoing formulary expansion and uncertainty around the timing of 2027 benefits and guidance.

Management expects Emrosi’s key metrics to “continue to trend positively in the coming quarters,” with ASP to “trend higher in the coming quarters”; a national formulary plan covering over 25 million lives is expected to take effect at the beginning of 2027, with impact “beginning in Q1,” and management expects an “upward trend on ASP and improvement in gross to net as the quarters progress in '27.” High-quality coverage was described as 40% of commercial lives, or about 170 million, 180 million lives, with additional formularies expected to come online in 2027; SG&A as a percentage of revenue is expected to be “consistent or a little bit lower,” or to “decrease a little bit or stay consistent.” Management is “probably going to be somewhat apprehensive here in the first half of next year to give any particular guidance,” although “it certainly will be going up in our estimation”; the 5 new representatives hired with a July 1 start are expected to have “a good 2 quarters” to ramp, and prescription volume following the copay change may take “anywhere from 4 to 8 weeks” to recover, with December expected to be “a very good month.”