FBIOP — Fortress Biotech, Inc.

Summary of Journey Medical's Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Total Revenues: $17.6 million, up 21% year-over-year from $14.9 million in Q3 2024.
• Gross Margin: 67.4%, slightly down from 69.4% in Q3 2024 but showing improvement from 63.5% in Q1 and 67.1% in Q2 2025.
• Operating Expenses: SG&A expenses increased to $12.1 million, up 6% from $11.4 million in Q3 2024.
• Net Loss: GAAP net loss of $2.3 million ($0.09 per share), compared to a loss of $2.4 million ($0.12 per share) in the prior year.
• EBITDA: Improved from a loss of $1 million in Q3 2024 to a loss of $500,000 in Q3 2025; positive adjusted EBITDA of $1.7 million compared to $300,000 in Q3 2024.
• Cash Position: Ended the quarter with $24.9 million in cash, up from $20.3 million at the end of 2024.

2. Strategic Updates and Business Highlights

• Product Launch: EMROSI, the new oral treatment for rosacea, contributed $4.9 million in revenue, marking a 75% increase from Q2 2025. Total prescriptions grew by 146% from Q2 to Q3.
• Market Access: Over 100 million of the 187 million commercial lives have access to EMROSI, with successful contracts established with 2 of the 3 major GPOs.
• Physician Engagement: Unique prescribers for EMROSI increased by 50% to over 2,700, indicating strong adoption and interest from dermatologists.
• Clinical Feedback: Positive feedback from physicians regarding EMROSI's efficacy and safety, with strong initial refill rates indicating patient satisfaction.

3. Forward Guidance and Outlook

• Journey Medical expects to become sustainably EBITDA positive in Q4 2025.
• Anticipates continued revenue growth driven by EMROSI, with potential peak annual net sales exceeding $200 million in the U.S. and $300 million globally.
• Plans to further enhance market access and increase prescriber engagement, focusing on converting initial prescribers into consistent writers.

4. Bad News, Challenges, or Points of Concern

• Competition: Legacy products, particularly Accutane, are facing generic competition, leading to a 16% year-over-year revenue decline in this product group.
• Gross to Net Variability: Revenue per prescription decreased from approximately $380 in Q2 to $275 in Q3, with ongoing uncertainty regarding reimbursement rates and the impact of the co-pay assistance program.
• Market Adoption Timeline: While initial access to EMROSI is strong, downstream health plan formulary adoption may take up to three quarters, potentially delaying revenue realization.

5. Notable Q&A Insights

• Patient Assistance Program: Management expects reliance on the co-pay assistance program to decrease as reimbursement improves, particularly in 2026.
• Prescriber Focus: The company is balancing efforts between increasing the breadth of prescribers and deepening existing prescriber engagement, with a goal to convert initial prescriptions into repeat business.
• Accutane Performance: Management indicated that Accutane has stabilized in Q4, but remains cautious about potential competitive pricing pressures.
• Launch Curve: The launch of EMROSI is showing positive momentum, with expectations for an accelerating growth curve as more prescribers adopt the treatment.

Overall, Journey Medical reported strong growth driven by the launch of EMROSI, while navigating challenges related to competition and reimbursement dynamics. The company remains optimistic about future performance and profitability.