Fortress Biotech Announces Suspension of Dividend Payment on 9.375% of Series A Cumulative Redeemable Preferred Stock

MIAMI, July 5, 2024 (GLOBE NEWSWIRE) — Fortress Biotech, Inc. (Nasdaq: FBIO; FBIOP) (“Fortress”), an innovative biopharmaceutical company focused on acquiring and advancing assets to create long-term shareholder value through product sales, equity investments, and dividend and royalty income, today announced that its Board of Directors has suspended the payment of dividends on the Company’s 9.375% Series A cumulative redeemable perpetual preferred stock (the “Series A Preferred Stock”) until further notice. Pursuant to the terms of the Series A Preferred Stock, dividends on the Series A Preferred Stock will continue to accrue and accumulate until such dividends are authorized or declared.

The Company will commence dividend payments on July 1, 2024, and there will be no dividend payment on July 31, 2024. The Company believes that suspending the dividend is in the best interests of the Company and its shareholders in order to maintain financial flexibility ahead of potentially significant inflection points.

The suspension of these dividends will result in approximately $0.7 million of cash dividend payments being deferred each month. The Board of Directors intends to review its decision regarding the monthly dividend on a regular basis and will evaluate the Company’s profitability and cash flow to determine whether and when to lift the suspension.

The Series A preferred stock trades on the Nasdaq Capital Market under the ticker symbol “FBIOP.”

Lindsay A. Rosenwald, MD, Chairman, President and CEO of Fortress, said, “Across our portfolio, we could receive up to three regulatory approvals for NDAs and BLAs for DFD-29, cosibelimab and CUTX-101 over the next 12 months, and potentially a fourth BLA application for CAEL-101 as early as 2025. Based on its public statements, AstraZeneca expects the FDA to accept its BLA application for CAEL-101 for the treatment of AL amyloidosis for review as early as 2025, which could lead to approval and commercial milestone payments to Fortress. In addition, Cyprium Therapeutics, our subsidiary that developed CUTX-101, retains 100% ownership of any Priority Review Voucher that may be issued upon NDA approval for CUTX-101. This is a pivotal moment for the Company and we are suspending the payment of the preferred dividend in order to remain financially flexible in advance of our numerous potential milestones in the near future.”

About Fortress Biotech
Fortress Biotech, Inc. (“Fortress”) is an innovative biopharmaceutical company focused on acquiring and advancing assets to create long-term shareholder value through product sales, equity investments, and dividend and royalty income. The Company has seven prescription drug products on the market and over 20 programs in development at Fortress, its majority-owned and majority-controlled partners and subsidiaries, and partners and subsidiaries it has formed and in which it holds significant minority interests. Fortress’ portfolio is commercialized and developed across multiple therapeutic areas, including oncology, dermatology and rare diseases. Fortress’ model focuses on leveraging its significant expertise and network in the biopharmaceutical industry to continue to grow and enhance the Company’s product portfolio. Fortress has partnered with some of the world’s leading academic research institutions and biopharmaceutical companies to maximize every opportunity, including AstraZeneca, City of Hope, Fred Hutchinson Cancer Center, Nationwide Children’s Hospital and Sentynl. For more information, visit www.fortressbiotech.com.

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Forward-looking statements
Statements in this press release that are not descriptions of historical facts are “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, as amended. The words “anticipate,” “believe,” “may,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “potential,” “plan,” “potential,” “predict,” “should” or “will,” or the negative of these terms or other comparable terminology generally are intended to identify forward-looking statements. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could adversely affect our business, results of operations, financial condition and stock price. Factors that could cause actual results to differ materially from those currently expected include risks related to: our growth strategy, financing and strategic agreements and relationships, the ongoing UTRF litigation and our indemnification of Caelum in connection therewith; our need for significant additional funding and uncertainties related to financing; our ability to successfully identify, acquire, complete and integrate product candidates on a timely basis; our ability to attract, integrate and retain key personnel; the early stage of products in development; the results of research and development activities; uncertainties related to preclinical and clinical testing; uncertainties related to the timing and likelihood of filing a BLA for CAEL-101; our ability to obtain regulatory approval for products in development, including for DFD-29, cosibelimab and CUTX-101, for which filing is pending; our ability to successfully commercialize products for which we receive regulatory approval; uncertainties related to the issuance of a Priority Review Voucher for CUTX-101; our ability to secure and maintain third party manufacturing, marketing and distribution of our and our partner companies’ products and product candidates; government regulation; patent and intellectual property matters; competition; and 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 change in events, conditions or circumstances on which any such statement is based, except as required by law, and we claim the protection of the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995. The information contained herein is intended for review in its entirety, and any terms, conditions or caveats applicable to any specific information contained in any part of this press release should be read as if they also apply to that part. analogous for all other cases where such information appears herein.

Company contact:
Jaclyn Jaffe
Fortress Biotech, Inc.
(781) 652-4500
[email protected]

Contact for media:
Tony Plohoros
6 degrees Celsius
(908) 591-2839
[email protected]