Fortress Biotech: Buy Rating Affirmed Amid Strategic Developments and Financial Upside
Joseph Pantginis has affirmed a Buy rating for Fortress Biotech, citing strategic developments and financial potential. Despite a Complete Response Letter (CRL) for CUTX-101 related to manufacturing issues, the drug's efficacy remains intact. Additionally, Fortress's subsidiary, Urica Therapeutics, secured a $205 million Series A Financing with Crystalys Therapeutics, enabling Phase 3 trials for dotinurad and providing a 3% royalty on future sales. This positions Fortress Biotech for significant financial upside and reinforces the Buy rating.
Joseph Pantginis has given his Buy rating due to a combination of factors influencing Fortress Biotech’s current and future prospects. The recent developments include a Complete Response Letter (CRL) for Cyprium/Sentynl’s CUTX-101, which, despite being a setback, is primarily related to manufacturing issues that are expected to be resolved. Importantly, the drug’s efficacy and potential approval remain unaffected, and the Rare Pediatric Disease Priority Review Voucher (PRV) is still intact, offering significant financial upside if sold.
Additionally, Fortress Biotech’s subsidiary, Urica Therapeutics, has entered into a lucrative agreement with Crystalys Therapeutics, securing a $205 million Series A Financing. This deal not only provides the necessary funds to complete Phase 3 trials for dotinurad in gout but also grants Urica a 3% royalty on future sales. Fortress Biotech stands to benefit from its majority ownership in Urica, gaining indirect equity in Crystalys and potential future revenue streams, reinforcing the Buy rating.
