Fortress Biotech Reports Financial Results for the First Quarter 2015 Ended March 31, 2015
May 11 2015 - 8:30AM
Fortress Biotech, Inc. (Nasdaq:FBIO) announces its financial
results for the first quarter of 2015 ended March 31, 2015.
"This was a very busy and productive quarter as we continue to
make progress with executing our business plan to develop a
diversified biopharmaceutical company with a robust pipeline of
products and multiple revenue streams. During the first quarter and
the subsequent few weeks, we secured six key licensing agreements
and formed three new subsidiaries, which we refer to as 'Fortress
Companies,'" said Dr. Lindsay A. Rosenwald, Fortress Biotech's
Chairman, President and CEO. "Going forward, we intend to develop
and commercialize products that we acquire either directly, within
Fortress, or indirectly through our Fortress Companies. We intend
to leverage our biopharmaceutical business expertise and drug
development capabilities to help these companies achieve their
goals. We will also continue to seek licensing, partnerships, joint
ventures and outside financings to support our research and
development programs in 2015 and beyond. Our recent name change and
rebranding to Fortress Biotech, Inc., we believe, better aligns
with our new strategy, recent accomplishments and our future
focus."
Financial Highlights:
- At March 31, 2015, Fortress Biotech's net cash and marketable
securities totaled $68.9 million compared to $69.7 million at
December 31, 2014, a decrease of $0.8 million for the quarter;
restricted cash totaled $14.6 million.
- Closed on a $10 million private placement of a promissory
note.
- License acquisitions totaled $7.4 million for the first quarter
of 2015.
- Research and development expenses were $1.6 million for the
first quarter of 2015, compared to $4.5 million for the first
quarter of 2014.
- General and administrative expenses were $3.5 million for the
first quarter of 2015, compared to $2.1 million for the first
quarter of 2014.
- Net loss was $12.1 million, or $0.31 per share, for the first
quarter of 2015 compared to a net loss of $7.4 million, or $0.21
per share, for the first quarter of 2014.
Recent Corporate Events:
- Obtained exclusive license to an intravenous (IV) formulation
of tramadol for the U.S. market from Revogenex Ireland Ltd. and
formed a Fortress Company, Avenue Therapeutics, Inc., to acquire,
in-license, develop and commercialize products primarily for the
U.S. hospital market. In addition to IV tramadol, Avenue
Therapeutics plans to seek additional products.
- Formed a new Fortress Company, Checkpoint Therapeutics, Inc.,
to develop a portfolio of fully human immuno-oncology targeted
antibodies created in the laboratory of Dr. Wayne Marasco, MD, PhD,
a Professor in the Department of Cancer Immunology and AIDS at
Dana-Farber Cancer Institute. Dr. Marasco will chair the Scientific
Advisory Board of Checkpoint Therapeutics.
- Executed an exclusive license agreement with NeuPharma, Inc. to
develop and commercialize novel irreversible, 3rd-generation EGFR
inhibitors on a worldwide basis outside of certain Asian countries.
The program is currently in preclinical development.
- Formed a new Fortress Company, Mustang Bio, Inc., which will
initially focus on the preclinical and clinical development, as
well as commercialization of proprietary Chimeric Antigen Receptor
(CAR-T) technology. This portfolio of CAR-T cells was developed by
Dr. Steven Forman and Dr. Christine Brown at City of Hope National
Medical Center in Duarte, California.
- Formed a new Fortress Company, DiaVax Biosciences, to develop
novel immunotherapies for the prevention and treatment of
cytomegalovirus (CMV), a common virus that affects people of all
ages and can cause serious morbidity and mortality in hematopoietic
stem cell and solid organ transplants. The licensed immunotherapies
were developed in the laboratory of Don J. Diamond, Ph.D. of City
of Hope National Medical Center in Duarte, California. Dr. Diamond
will chair DiaVax's Scientific Advisory Board.
- Changed its name to Fortress Biotech, Inc. from Coronado
Biosciences, Inc., effective at the open of market on April 28,
2015, with the new NASDAQ stock ticker FBIO.
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 that it
acquires both directly as well as indirectly by establishing
subsidiary companies, also known as Fortress Companies. The Company
intends to leverage its biopharmaceutical business expertise and
drug development capabilities to help the Fortress Companies
achieve their goals. Additionally, the Company intends to 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; risks relating to the results of research and development
activities; our ability to obtain, perform under and maintain
financing and strategic agreements and relationships; 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.
|
|
|
FORTRESS BIOTECH, INC.
AND SUBSIDIARIES |
Consolidated Balance
Sheets |
($ in thousands except
for share amounts) |
|
|
|
|
March 31, |
December 31, |
|
2015 |
2014 |
|
(Unaudited) |
|
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ 48,928 |
$ 49,759 |
Marketable securities, at fair
value |
20,005 |
20,002 |
Prepaid expenses and other
current assets |
680 |
702 |
Total current assets |
69,613 |
70,463 |
|
|
|
Property and equipment, net |
46 |
52 |
Restricted cash |
14,586 |
14,586 |
Long-term investments, at fair value |
3,945 |
4,160 |
Intangible asset - license |
1,250 |
-- |
Other assets |
1,011 |
70 |
Total assets |
$ 90,451 |
$ 89,331 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$ 664 |
$ 366 |
Interest payable |
26 |
28 |
Accrued expenses |
5,238 |
3,683 |
Total current liabilities |
5,928 |
4,077 |
|
|
|
Note payable, long-term |
24,009 |
14,009 |
Other long-term liabilities |
327 |
722 |
Total liabilities |
30,264 |
18,808 |
|
|
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders' equity |
|
|
Convertible Preferred stock, $.001 par value,
129,767 Series C shares authorized, 0 shares issued and outstanding
as of March 31, 2015 and December 31, 2014, respectively |
-- |
-- |
Common Stock, $.001 par value, 100,000,000
shares authorized, 46,819,034 and 46,494,034 shares issued and
outstanding as of March 31, 2015 and December 31, 2014,
respectively |
47 |
46 |
Additional paid-in-capital |
213,890 |
212,205 |
Accumulated deficit |
(153,784) |
(141,728) |
Shareholders' equity attributed to Fortress
Biotech, Inc. |
60,153 |
70,523 |
|
|
|
Non-controlling interest |
34 |
-- |
Total stockholders' equity |
60,187 |
70,523 |
Total liabilities and stockholders'
equity |
$ 90,451 |
$ 89,331 |
|
|
|
|
|
|
FORTRESS BIOTECH, INC.
AND SUBSIDIARIES |
Consolidated Statements
of Operations |
($ in thousands except
for share amounts) |
(unaudited) |
|
|
|
|
For the three
months ended March 31, |
|
2015 |
2014 |
Revenue |
$ 500 |
$ -- |
|
|
|
Operating expenses |
|
|
Research and development |
1,642 |
4,487 |
Research and development -
licenses acquired |
7,439 |
-- |
General and administrative |
3,490 |
2,095 |
Total operating expenses |
12,571 |
6,582 |
Loss from operations |
(12,071) |
(6,582) |
|
|
|
Other income (expenses) |
|
|
Interest income |
82 |
178 |
Interest expenses |
(331) |
(966) |
Change in fair value of
investments |
(215) |
-- |
Total other income (expenses) |
(464) |
(788) |
Net loss income |
(12,535) |
(7,370) |
|
|
|
Less: net loss attributable to
non-controlling interest |
(479) |
-- |
Net loss attributable to Fortress
Biotech, Inc. |
$ (12,056) |
$ (7,370) |
|
|
|
Basic and diluted net loss per share
attributable to Fortress Biotech, Inc. common stockholders |
$ (0.31) |
$ (0.21) |
|
|
|
Weighted average common shares
outstanding—basic and diluted |
38,574,702 |
35,900,596 |
CONTACT: Lucy Lu, MD, Executive Vice President &
Chief Financial Officer
Fortress Biotech, Inc.
781-652-4525; ir@fortressbiotech.com
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