Fortress Biotech Shares Drop Following FDA Rejection of Rare Disease Treatment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 01 2025
0mins
Should l Buy FBIO?
Source: SeekingAlpha
FDA Decision: Fortress Biotech's stock dropped approximately 31% after the FDA declined to approve CUTX-101, a treatment for Menkes disease, citing manufacturing issues at the production facility.
Next Steps: Fortress Biotech and its partner Zydus Lifesciences plan to meet with the FDA to discuss the complete response letter and explore the possibility of resubmitting the New Drug Application.
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Analyst Views on FBIO
Wall Street analysts forecast FBIO stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 3.490
Low
4.50
Averages
10.75
High
17.00
Current: 3.490
Low
4.50
Averages
10.75
High
17.00
About FBIO
Fortress Biotech, Inc. is a biopharmaceutical company focused on acquiring and advancing assets. The Company has eight marketed prescription pharmaceutical products and over 20 programs in development, with its majority-owned and majority-controlled partners and subsidiaries and partners and subsidiaries it founded and in which it holds significant minority ownership positions. Its portfolio is being commercialized and developed for various therapeutic areas, including oncology, dermatology, and rare diseases. Its dermatology products include Emrosi, Qbrexza, Amzeeq, Zilxi, Exelderm, Targadox, and Luxamend. Its late-stage product candidates include CUTX-101 (copper histidinate injection for Menkes disease), Triplex (cytomegalovirus (CMV) vaccine), and CAEL-101 (monoclonal antibody for AL amyloidosis). Its early and mid-stage product candidates include Dotinurad (urate transporter (URAT1) inhibitor for gout), MB-101 (IL13Rα2 CAR T Cell Program for Glioblastoma), and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Acquisition Deal: Boston Scientific's $14.5 billion acquisition of Penumbra reflects its strategic expansion in interventional therapies, expected to enhance its leadership in vascular treatments and drive future revenue growth.
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See More
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- FDA Approval: The U.S. FDA has officially approved ZYCUBO (formerly CUTX-101) for treating Menkes disease in children, marking it as the first FDA-approved treatment for this rare condition, significantly enhancing Fortress Biotech's market position in the rare disease sector.
- Milestone Earnings: Cyprium Therapeutics stands to earn tiered royalties and up to $129 million in potential development and sales milestones from Sentynl, which will substantially bolster the company's financial performance and support future R&D efforts.
- Survival Rate Improvement: Results indicate that children receiving early treatment with ZYCUBO had nearly an 80% lower risk of death, with a median overall survival of 177.1 months compared to 17.6 months in the control group, highlighting the drug's critical role in improving patient outcomes.
- Positive Market Reaction: Following the FDA approval, Fortress Biotech's stock surged over 12% in premarket trading, with investor sentiment shifting from 'bullish' to 'extremely bullish', reflecting strong market confidence and growth potential for the drug.
See More
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- FDA Approval Milestone: Fortress Biotech and its subsidiary Cyprium Therapeutics received FDA approval for ZYCUBO, the first treatment for Menkes disease in the U.S., marking a significant breakthrough for this rare and often fatal pediatric disorder.
- Significant Survival Improvement: Clinical data shows an almost 80% reduction in death risk for patients receiving early treatment, with a median overall survival of 177.1 months in the treated group compared to just 17.6 months in controls, demonstrating ZYCUBO's effectiveness.
- Priority Review Voucher: The FDA also granted Cyprium a Rare Pediatric Disease Priority Review Voucher (PRV), providing financial support for further development and eligibility for up to $129 million in development and sales milestone payments.
- Strategic Validation: This approval marks Fortress Biotech's third FDA approval in 15 months, further validating its portfolio-building strategy and enhancing the company's market position in the biopharmaceutical sector.
See More
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- Stock Price Surge: In anticipation of the FDA decision, Fortress Biotech's shares rose over 3% in premarket trading to $4.40, reflecting market optimism regarding the company's potential future revenues.
- Milestone Rewards: Cyprium Therapeutics stands to receive up to $129 million in aggregate development and sales milestone payments from its partner Sentynl Therapeutics, along with royalties on net sales of CUTX-101, significantly enhancing the company's financial outlook.
- Disease Context: Menkes disease, caused by mutations in the ATP7A gene, has a high mortality rate in untreated patients, often between ages 2 and 3, making the successful launch of CUTX-101 crucial for providing much-needed treatment options, thus holding significant social and market implications.
See More
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