Fortress Biotech Inc (NASDAQ: FBIO) is a biopharmaceutical company that acquires, develops, and commercializes drug and drug product candidates through a portfolio of majority-owned subsidiaries and partner companies. It generates revenue through product sales at its partner companies, royalties, milestone payments, and licensing arrangements tied to its drug pipeline. The model centers on founding or co-developing partner companies, retaining equity stakes, and collecting fees and royalties as those entities advance programs through clinical development and commercialization. As of December 31, 2025, active partner companies included Avenue (OTC: ATXI), Journey Medical (Nasdaq: DERM), Mustang Bio (Nasdaq: MBIO), Cyprium, Helocyte, Oncogenuity, Urica, and Cellvation, with Fortress ownership stakes ranging from approximately 4.0% in Mustang to 83.4% in Helocyte. Programs span oncology, dermatology, rare disease, and acute care. The company relies on equity offerings, at-the-market programs, and partner company financings to fund operations, and pays Series A perpetual preferred stock dividends, indicating a capital-intensive, pre-profitability structure.

Revenue model

Revenue comes from product sales at partner companies (including Journey Medical's dermatology products), royalties, development and commercial milestone payments, and sublicensing fees. Fortress also receives equity value from partner company appreciation and collects management and founders' fees from those entities. Capital is raised through public equity offerings, at-the-market programs, and debt facilities including an Oaktree note that was repaid during the filing period.

Products and services

Key programs include IV tramadol (Avenue, NDA-stage intravenous opioid for post-operative acute pain), MB-108 and MB-101 (Mustang Bio, CAR T-cell therapies for malignant glioma and astrocytoma, both carrying FDA Orphan Drug Designation as of late 2024 and mid-2025), BAER-101/AXS-17 (sourced by Fortress, developed at Baergic, sold to Axsome in November 2025 for epilepsy development), and AJ201 (sourced by Fortress, previously at Avenue, returned to AnnJi in April 2025). Journey Medical (Nasdaq: DERM) operates as the commercial dermatology partner company.

Customers and end markets

End markets include hospital and surgical settings (IV tramadol for post-operative pain), oncology and rare disease (CAR T-cell programs targeting glioma), dermatology (Journey Medical commercial products), and rare pediatric disease (Cyprium). Revenue realization depends on third-party payor reimbursement, including Medicare, Medicaid, managed care, and private insurers.

Value-chain role

Fortress acts as a drug development holding company, sourcing early-stage assets, founding or co-founding partner companies around those assets, funding development, and retaining royalty and milestone rights as programs advance. It does not manufacture at scale internally; Mustang sold its Worcester, Massachusetts manufacturing facility assets to AbbVie Bioresearch Center in February 2025.

Geographic exposure

Primary operations and regulatory focus are in the United States. Licensing and royalty arrangements include international rights, as noted in the Axsome deal covering global net sales of AXS-17 and the AnnJi arrangement involving sublicensing revenue. The 10-K filed 2026-03-31 does not specify revenue by geography.

Source: SEC 10-K, filed 2026-03-31

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