Fortress Biotech (FBIO) Q2 FY26 earnings call: guidance and Q&A

Were there any inventory movements affecting Q2 ASP, and should investors expect continued sequential ASP gains?

Management confirmed zero inventory distortions occurred in Q2 and stated high confidence that ASP will continue to drift upward in subsequent quarters as higher-quality payer reimbursement takes effect.

“None. No... our expectation is that we'll continue to gain better ASPs as more reimbursement from our payer strategy gets implemented.”

asked by Scott Henry · answered by Claude Maraoui

Why was QBREXZA lighter in Q2, and what is the multi-quarter trajectory for the brand?

Softness stemmed from non-controllable payer mix shifts and deductible resets lingering into Q2. The product brings in $25M-$26M annually and showed accelerating summer demand with over 14,500 scripts in June and ~15,000 in July.

“It brings in roughly about $25 million to $26 million. You'll see some up and down quarters with the brand. And this past one was a little bit light.”

asked by Scott Henry · answered by Claude Maraoui

Should investors expect a step-up in SG&A during the second half given the Eurax launch and commercial expansion?

SG&A will increase modestly due to planned marketing and advertising initiatives in Q3 and Q4, but overall SG&A as a percentage of revenue is projected to remain steady.

“You're not going to see any surprises, but we do have some marketing programs, some advertising programs that will probably implement the third, fourth quarter. But overall, I expect to see the percentage of revenue from SG&A pretty consistent.”

asked by Mayank Mamtani · answered by Joseph Benesch

How does the early August national plan addition impact ASP, and how are refill rates evolving?

The addition adds to high-quality lives beyond the current 38% (72M lives). Refill rates averaged ~1.5 refills per patient in July (total 2.5 fills), while new patient starts reached an all-time monthly high of 5,300 in June.

“Our refill rate for that particular month, for example, is at 1.5 plus the regular fill. So you're at about 2.5 right now, if you think about it.”

asked by Mayank Mamtani · answered by Claude Maraoui

Where does market access friction remain for Emrosi, and what will it take to loosen it?

While 169M lives have access, ~80M-90M lives have barriers like prior authorizations or double step therapy. Management is negotiating lookbacks and single-step criteria, leveraging superior 8-week Phase 3 data vs 16-week Oracea.

“So if you look at the delta between the 2, you're going to see that the, let's call it, 80 million, 90 million lives, right, that potentially have access to Emrosi might have a larger barrier... That could be, for example, a prior auth or a double step that's in place.”

asked by Brandon Folkes · answered by Ramsey Alloush

What are the commercial expectations and detailing position for newly launched Eurax Cream?

Eurax is an antipruritic cream (10% crotamiton) re-formulated to be nonsteroidal and fragrance-free. Commercial teams were trained in June and launched in July; it is slotted third in detailing behind Emrosi and QBREXZA and included in rep incentive compensation.

“We trained our commercial team in June, and we launched the brand in July. So brand new out there... this is coming in right behind Qbrexza in the third position.”

asked by Brandon Folkes · answered by Claude Maraoui

Are the 5 newly hired sales reps deployed into pure white space or territory splits?

Most represent white-space expansion across the 15,000 U.S. dermatologists, though certain territories with high dermatologist density were split to increase coverage.

“So out of the 5, most of them are in white space, but we do have some areas where the number of dermatologists and the penetration is better well served with splitting it.”

asked by Thomas Flaten · answered by Claude Maraoui