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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was primarily driven by Emrosi, which saw a 20% sequential increase in prescriptions and a significant expansion of the unique prescriber base to over 4,500. Management attributes the accelerating adoption of Emrosi to its superior head-to-head efficacy data against Oracea, specifically its ability to achieve results in half the time. The company achieved positive EBITDA in Q2 by maintaining disciplined expense management, with operating expenses increasing by less than 1% despite a 23% rise in total net product revenues. Strategic focus has shifted toward high-quality formulary coverage, defined as a single step edit or better, which increased from 34% in Q1 to approximately 38% currently. The commercial infrastructure was expanded with five new sales professionals to target white space and high-density territories among the 15,000 U.S. dermatologists. Management is leveraging a 'proven dermatology commercial infrastructure' to integrate new niche products like Eurax Cream without significant incremental overhead. Management expects 2026 to be a 'breakout year' with sustained positive EBITDA and cash flow for the remainder of the fiscal year. Average Selling Price (ASP) for Emrosi is projected to continue rising sequentially as higher-quality payer reimbursements become a larger portion of the business mix. The company anticipates new journal publications and potential incorporation into consensus treatment guidelines for rosacea to further validate clinical superiority. Strategic business development efforts are focused on out-licensing patented products in non-U.S. territories and in-licensing new assets to expand the dermatology portfolio. Guidance assumes continued market penetration from the recently deployed sales representatives and traction from a major national health plan added in August. The launch of Eurax Cream in July serves as a strategic addition to the portfolio, utilizing existing sales channels to address anti-itch needs in dermatology. Qbrexza revenue experienced slight quarterly fluctuations attributed to shifts in patient and payer mix rather than a decline in underlying demand. Management noted that while rosacea treatment is not highly seasonal, winter months may see minimal shifts in market dynamics due to cold weather triggers. The company successfully completed agreements with all top three GPOs, providing access to 169 million out of 192 million covered commercial lives. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that the 10% ASP boost in Q2 was not driven by inventory movements and expects sequential gains to continue. The upward trajectory is tied directly to the implementation of the payer strategy and increased reimbursement from insurance companies. The primary bottleneck is the 'delta' between 169 million lives with access and the 72 million lives with 'high-quality' (single step) coverage. Management is negotiating to remove 'double step' edits or prior authorizations by emphasizing Emrosi's clinical value proposition and financial profile. They are specifically targeting 'look back' periods in negotiations to ensure patients can access Emrosi after failing only one prior therapy. Journey Medical maintains global patent rights for Emrosi, Qbrexza, and Amzeeq, with active negotiations ongoing for various international regions. Management noted that while global market opportunities are robust, deal timelines are influenced by regional political climates and legislative actions.

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 4:30 p.m. ET Co-Founder, President and Chief Executive Officer - Claude Maraoui Chief Financial Officer - Joseph Benesch Chief Operating Officer and General Counsel - Ramsey Alloush Senior Director of Corporate Operations - Jaclyn Jaffe Operator: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to Journeys Medical's Second Quarter 2026 Financial Results and Corporate Update Conference Call. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately 1 hour after the end of the call for approximately 30 days. I would now like to turn the call over to Jaclyn Jaffe, the company's Senior Director of Corporate Operations. Please go ahead, Jaclyn. Jaclyn Jaffe: Good afternoon, and thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Claude Maraoui, Co-Founder, President and Chief Executive Officer; Joseph Benesch, Chief Financial Officer; and Ramsey Alloush, Chief Operating Officer and General Counsel, who will participate in the Q&A portion of the call. During this call, management will be making forward-looking statements, including statements that address among other things, Journey Medical's expectations for future performance, operational results, financial condition and the receipt of regulatory approvals. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For information about these risks, please refer to the risk factors described in Journey Medical's most recently filed periodic reports on Form 10-K and Form 10-Q. The Form 8-K filed with the SEC today and the company's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes non-GAAP financial measures that Journey Medical believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to net loss, its most directly comparable GAAP financial measure, please see the reconciliation table located in the company's earnings press release. The content of this call contains time-sensitive information that is accurate only as of today, Wednesday, August 12, 2026. Except as required by law, Journey Medical disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Claude Maraoui, Co-Founder, President and Chief Executive Officer of Journey Medical. Claude Maraoui: Thank you, Jaclyn, and good afternoon to everyone on the call today. We continue to make solid progress in our business in the second quarter as we delivered strong revenue growth and improved profitability during the period. Emrosi revenues were $8.1 million in Q2, up significantly year-over-year and sequentially from the first quarter on higher prescription volume, improving payer reimbursement and a significant step-up in the number of dermatology writers prescribing the brand. These metrics not only trended positively, but also showed acceleration, and we expect this progress to continue in the coming quarters. Our total net product revenues for the second quarter rose by 23% year-over-year, while operating expenses increased by less than 1% compared to Q2 of last year. We remain focused on delivering strong top line growth and leveraging our proven dermatology commercial infrastructure. We are executing on these initiatives and as a result, we generated positive EBITDA in the second quarter. With this performance, we continue to believe that 2026 will be a breakout year for Journey Medical with respect to both revenue growth and profitability. Emrosi prescriptions totaled approximately 36,000 in the second quarter, up from about 30,000 total prescriptions in the first quarter of this year. This represents approximately 20% sequential quarterly growth for the product, which is up from the 11% sequential quarterly prescription growth seen last quarter. Importantly, the growth is being driven by new prescriptions in addition to refills with successive increases in NRxs on a monthly basis. In June, we saw a strong increase with over 5,300 new prescriptions filled, up from an average of 4,700 NRxs in the preceding 3 months. This was an all-time monthly high for the product. We reported last quarter that approximately 3,700 unique dermatology prescribers had written a prescription of Emrosi. Today, I am pleased to report that there are now over 4,500 unique prescribers writing for the brand. This is more than a 40% increase in Emrosi prescribers from the 3,200 prescribers that we had at the end of 2025. We believe that these accelerating trends are encouraging and demonstrate that as more prescribers and patients gain experience with Emrosi, product loyalty will increase and the franchise value will continue to compound. As we had planned, we hired an additional 5 dermatology sales professionals into our commercial organization during the second quarter. These experienced representatives joined the company in late July and were recently deployed into the field. The time to fill these relatively large sales territories couldn't be better, and we expect that contributions from these new representatives will add to our already strong market penetration efforts. With over 15,000 dermatologists in the United States, there is significant room for us to grow our base of prescribers. We are increasing our peer-to-peer marketing activities, and we remain active at key dermatology medical conferences to expand awareness of Emrosi superior clinical benefits in the treatment of rosacea. The superior head-to-head efficacy results demonstrated in our Phase III clinical trials comparing Emrosi to the only other branded oral rosacea treatment, Oracea, continue to be central in driving adoption throughout the dermatology community. Emrosi placebo-like safety and tolerability profile is proving to be durable, which is another important factor in recruiting new prescribers. From the patient perspective, Emrosi rapid onset of action and superior skin clearing effects compared to Oracea are key and real-world patient experiences are supporting a growing base of loyal end users. Helping us to further broaden awareness of Emrosi in the market, we expect to announce new journal publications for the product in the coming quarters, and we believe that Emrosi has potential to be incorporated into the consensus treatment guidelines for rosacea. The payer community is also taking note of Emrosi's early success in the market, and we are continuing to make progress with the downstream health plans. Importantly, the calculated average selling price for Emrosi based on prescriptions increased in Q2 over Q1. After increasing previously in Q1 over Q4, as reimbursed prescriptions are becoming an increasing part of the business mix. As Emrosi's formulary status improves, we believe that our ASP will continue to rise. Earlier this year, we completed our agreements with all the top 3 GPOs in the nation, bringing plan access for Emrosi to over 169 million of the 192 million covered commercial lives in the U.S. With those agreements in place, our focus is to pursue high-quality formulary coverage with the downstream health plans, meaning a single step edit or better. We made good progress in the second quarter as the percentage of commercial lives with high-quality formulary coverage increased from 34% in Q1 to approximately 38% currently. Supporting this positive trend, a large national health plan placed Emrosi on its formulary in early August, and we expect to see traction from that addition this quarter. And now I will turn the call over to our CFO, Joe Benesch, to review our second quarter financial results. Joseph Benesch: Thank you, Claude, and good afternoon to everyone on the call. I'll now review our financial results for the second quarter of 2026. Total revenue for the quarter was $18.5 million compared to $15 million in the second quarter of 2025, reflecting a 23% increase from period to period. This growth was primarily driven by momentum from continued commercial demand for Emrosi which generated $8.1 million in net revenue for the quarter. Turning to gross margin. We reported a 67% margin for the second quarter of 2026, consistent with the prior year quarter. SG&A expenses were $10.9 million for the quarter compared to $11.9 million in the second quarter of 2025. The decrease was primarily due to the impact of launch-related spending for Emrosi in the prior year quarter. Our GAAP net loss narrowed to $300,000 or $0.01 per share basic and diluted compared to a net loss of $3.8 million or $0.16 per share basic and diluted for 2Q 2025. On a non-GAAP basis, both EBITDA and adjusted EBITDA were positive for the 3- and 6-month periods ended June 30, 2026. EBITDA reflected net income of $1.4 million and $1.1 million for the second quarter and the 6-month period ended June 30, 2026, respectively, compared to net losses of $1.9 million and $4.1 million for the prior year quarter and the prior year-to-date period, respectively. Adjusted EBITDA, which is generally our EBITDA number less noncash share-based compensation expense, reflected net income of $2.9 million and $3.5 million for the second quarter and the 6-month period ended June 30, 2026, respectively, compared to net losses of $500,000 and $1.4 million for the prior year quarter and the prior year-to-date period, respectively. We ended the quarter with $25.6 million in cash compared to $24.1 million as of December 31, 2025. In summary, our second quarter results reflect the continued execution of our plan to become sustainably EBITDA positive through revenue growth, margin improvement and expense optimization, which we intend to remain focused on. Thank you very much. I will now turn the call back over to Claude. Claude Maraoui: Thank you, Joe. The second quarter was another productive period for Journey Medical with clear progress made on our business objectives. We are delivering on our goal to generate positive EBITDA for the remainder of the year and with our net product sales growing significantly faster than our expenses. We are making solid progress toward becoming sustainably earnings and cash flow positive. Emrosi continues to gain market share in the rosacea treatment segment with prescription growth accelerating in Q2 and our base of new prescribers increasing at an impressive rate. With total prescriptions growing by 20% sequentially from the first quarter of this year, we believe that the promise of Emrosi is beginning to be realized broadly in the market. Importantly, patient experiences are validating that the superior benefits in our Phase III clinical trials are highly clinically meaningful. We remain focused on achieving high prescriber and patient satisfaction rates as this is the cornerstone of our efforts to build a strong base and deliver compounding growth for the brand. With market momentum building, our payer coverage continues to improve as well. The trends of higher ASPs since the beginning of the year is a reflection of that progress. Emrosi was added to the formulary of a major national health plan earlier this month and with other payer initiatives in various stages of progress, we continue to expect our ASP to improve throughout the back half of the year, fueling Emrosi sales growth. With our business moving in the right direction, we believe it was the perfect time to expand our commercial organization, and we did so by recently hiring and deploying 5 new sales professionals to fill new territories. We also executed on launching a niche dermatology product late in the second quarter called Eurax Cream. Our new sales professionals and this new addition to our product lineup are expected to augment our efforts to grow company revenues with Emrosi remaining as high priority detail in the Journey portfolio. With regards to business development activities, we continue to explore out-licensing opportunities for the commercial rights to our patented products in non-U.S. territories. in addition to the potential to in-license assets to expand our dermatology product offering and increase value for the company. We continue to expect that 2026 will be a breakout year for Journey Medical, and we will remain committed to delivering on our core objectives to improve the lives of patients, offer innovative treatment options to dermatology health care providers and to create long-term value for our shareholders. Thank you. Operator, we are now ready to open the lines for Q&A. Operator: [Operator Instructions] The first question today comes from Scott Henry with Alliance Global Partners. Scott Henry: Claude, you gave a lot of color on ASP. I'm just going to ask a couple of follow-up questions. So bear with me. Were there any inventory movements in the quarter that can sometimes inflate or even deflate that ASP on a specific quarter? Claude Maraoui: None. No. Scott Henry: Okay. So I mean, oftentimes, I'll see this where the ASP is drifting up, but it's not a straight line, but you sound pretty confident that we could get -- because this was about a 10% boost over first quarter, which is fantastic. But it sounds like you're looking for sequential gains in the next couple of quarters as well. Is that the correct interpretation? Claude Maraoui: That's correct. I think you'll see good progress from -- really from Q4 last year, Q1 to Q2, and our expectation is that we'll continue to gain better ASPs as more reimbursement from our payer strategy gets implemented and more reimbursements happening through the insurance companies. Scott Henry: Okay. Great. And I don't know if you can speak to the season -- I mean the Q2 was great, and you had some significant gains, but it's kind of plateaued for the past couple of weeks around 3,000 a week. Is there any seasonality where we may get a boost coming out of the summer months? Any thoughts on that? Claude Maraoui: Yes. It's a good question. Fair question. As I'm looking at market data and just looking in the past 6 quarters, 7 quarters of the total market, pretty consistent throughout. You would anticipate from summer going into winter with the cold weather coming into play in the next several months that there's some changes. It's minimal, and I would not put a lot of seasonality to it. Now we've had good growth consistent throughout the whole year. You'll see some weeks, Scott, that there's maybe several weeks that are at the same level and then we get a bump up. And that's what we've seen with this brand on a consistent basis as we've launched it here in 2026. So we just got Symphony numbers, for example, for July. So we had about 13,000 prescriptions for Emrosi in June, and now we have approximately 14,000. So we've increased it in a good fashion. New prescriptions are up. The trends are very strong. We had about 5,300 new prescriptions. The last 3 months preceding that was about 4,700. So the trends are very positive. And in my opening remarks, we talked about unique prescribers. I will tell you, from closing out 2025, we had about 3,200 prescribers. We moved that up to approximately 3,700 prescribers ending Q1, and we're close to 4,500-plus prescribers right now. So more physicians are jumping on, and it's really looking positive. Scott Henry: Okay. So some great momentum going there. Just shifting gears, a couple of the other products. QBREXZA was down a little bit in the quarter. That's kind of the second product that really matters here now. How do you see that product? Is that a flattish product? Or should we think about that as a declining product? Just wanted to hear your thoughts on the big picture long-term view on QBREXZA in these next 4 quarters to 6 quarters? Claude Maraoui: Yes, sure. Now QBREXZA is a fantastic product, very meaningful to the company. Right now, it's second out of the bag in terms of promotion with our field sales force. Obviously, Emrosi's first out of the bag. And we have great contribution from QBREXZA, very consistent over the time that we've had it. 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. I would contribute that to probably a few things. One is patient mix, payer mix, right? We don't control that blend that's happening during the quarter. So that's certainly a big part of it. I think you'll have some residual effects from insurance deductible resets from the beginning of the year that leak into Q2. We are going into a very good strong season for hyperhidrosis, the hotter summer months. And again, we had an extremely strong month of June. We hit over 14,000-plus prescriptions, about 14,500 to be exact. As I mentioned, with Emrosi, we just got the July numbers, and we're just shy of the 15,000 mark. So demand is increasing. Patient satisfaction with the brand is extremely high. And it's just very convenient. You can use this brand any time of the day or evening. There's no restrictions. And the simple use of it, Scott, makes it very friendly. The fact there's no aluminum containing ingredients in the brand makes it very appealing to a lot of people. So the brand is growing, and we see great contribution. So I would expect with consistency that you've seen over the last couple of years with this. Operator: The next question comes from Mayank Mamtani with B. Riley Securities. Mayank Mamtani: Maybe on the operating leverage, if I could start there. Your SG&A stayed unchanged while obviously, you're reporting on very strong commercial KPIs. I was wondering in second half with all the corporate developments you've talked about, including niche launch, should we expect a step-up in SG&A starting with 3Q? And I have a few follow-ups after that? Claude Maraoui: Joe, would you like to take that one? Joseph Benesch: Yes, sure. So Mayank, the answer is yes, somewhat, right? 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. Mayank Mamtani: Okay. And then, Claude, you talked about the major national plan added in early August. I was obviously wondering how that impacts net ASP in second half or what you've seen already relative to this nice improvement you've seen in first and second quarter. And I was also wondering on the refill rate that continues to climb up. Is there like a year-end number that is in your mind, you can see kind of how trends are telling you? And is there any like how your unique prescriber number also is moving, how many physicians are writing Emrosi? Is there maybe a correlation between these 2 big KPIs you're tracking? Claude Maraoui: Sure. I'll start with the latter 2 parts of your question there. Refill rates are very important. We have been very committed on being on message in terms of our Phase III clinical trials. Our commercial team is executing, talking about 4-month trials. And I think it's resonating extremely well with our prescribers. So if they are prescribing Emrosi, which, again, we continue to see more and more prescribers each quarter, and then depending on how they are giving the refills, if it's 1 prescription plus 3 refills, that's according to our Phase III clinical trials. But dermatologists are artists, patients come in and present their rosacea in different parts, phases to the physicians. So they're going to vary on how many refills they get and what they're comfortable with. So that's going to go up and down. And as we get these new prescribers on board, once they get those patients back, they're going to get more and more comfortable with the brand. So refill rates are important. The month of July that just came in, again, an all-time high with 14,000 prescriptions. 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. But you can also see a surge in new prescriptions. As I mentioned, we were averaging about 4,700 new prescriptions a month. Now we moved that up to about 5,300 prescriptions. So the refill rate, even though that's compounding now with more physicians using this and giving refills to their patients, the refill rate is important, but I think you have to look at total prescriptions and that line continues to demonstrate very strong positive growth. So I would tell you that, that's how I would think about it, Mayank. In terms of the new national health care plan, I'm going to ask Ramsey to jump in here and talk about that a little bit and then potential for the rest of the year. Ramsey Alloush: Sure. Mayank, thanks for the question. And I think the question was with this new national formulary on board, what is our sort of expectation from an improvement on ASP. Obviously, it's an upward trajectory. It's a very large national plan. As you know, as of April, we had signed all 3 major GPOs. So in the second quarter, we did have some number of lives come over from that third GPO. This will be in addition to that. This is a separate national formulary in which we were able to get Emrosi on formulary for. So we do expect improvement. We talk about 38% quality of the 192 million lives having access to Emrosi with a single step therapy or better. And so adding this new national formulary is going to increase that number, right? So from the 70-plus million lives, it's going to go up from there. We think that's the least amount of friction that a patient really should have to be able to get a prescription through the adjudication process and pick up their prescription. We do have a number, and we've said this previously, a number of other sort of negotiations and presentations going on with other large national formularies. We think the fact that we were able to be successful with a positive add with the one we were just recently added to should help us in our momentum going forward. And yes, we expect good milestones to be hit throughout Q3, into Q4 and obviously into 2028 as well. Mayank Mamtani: Great. And my final question on the ex-U.S. out-licensing efforts, including for Emrosi, is there anything IP related or thoughts like that may be also playing a role there? Or is it just these things can take a little while, especially ex-U.S. where our dynamics are very different. Ramsey Alloush: Yes. And Claude, if you don't mind, I can take the out-licensing question as well. Claude Maraoui: Sure. Yes. Ramsey Alloush: As you may know, Emrosi, QBREXA, AMZEEQ [indiscernible], those are our patented brands in which we acquired. We acquired global rights. We maintain global patent portfolio for all of those brands. QBREXZA is available in Japan with our partners, Maruho, and we did additional out-licensing in Korea, Taiwan and other ASEAN countries. AMZEEQ is available in China with our partners, [ QDIA ], commercially available. They launched about a year ago. We continue to have additional conversations with out-licensing with those brands, but more importantly, Emrosi, right? And in terms of ongoing negotiations, I can -- what I can tell you is that they are happening on a consistent basis. We do have IP, as I mentioned, globally, which includes Europe, Canada, Australia, New Zealand, Japan and other parts of Asia. So in terms of the robustness of the IP and the market opportunity, it's there. But as you kind of mentioned, it does take some time, right, to get to the meeting of the minds to have the right structure in place to make sure all the right political climate is in place given certain new legislative or executive order actions that are kind of ongoing. Obviously, our primary focus is making Emrosi the standard of care, the gold standard in the U.S. for rosacea. We certainly think and we have ongoing discussions with other companies that there's great opportunity in those regions as well. So we'll continue to update as we go. And obviously, once something definitive is available. Operator: The next question comes from Brandon Folkes with H.C. Wainwright. Brandon Folkes: Maybe just 2 for me, staying on Emrosi you look to be making very good progress here on the gross to net and obviously on volume. But maybe just where is the remaining friction in access today, including paracet, especially that friction that you believe you could remove or loosen over the next 12 months? And then secondly from me, just having to look at your Q, Eurax, I believe that's how you pronounced it, apologies if not. Can you just give us more color on your expectations for that product, maybe when it launched in the quarter? And how you envision that product growing over time? Claude Maraoui: Yes, certainly. Brandon, we want -- and you nailed it Eurax is the correct name, 10% crotamiton. This is an anti-inch, antipruritic product. It's nonsteroidal, nonhistaminic and fragrance-free. We worked diligently to change this formula. This is a brand that we picked up a number of years ago from another pharmaceutical company, and we really believe it's an enhanced formulation, and it will be welcomed in the dermatology community for their patients that suffer from significant itching. We trained our commercial team in June, and we launched the brand in July. So brand new out there. When you take a look at our portfolio, this is coming in right behind Qbrexza in the third position. So Emrosi first, Qbrexza second and then followed by Eurax right now. So it's brand new. It's just starting out. We're starting to see some traction. We're getting some positive feedback from our dermatology base of physicians. So we like what we're hearing so far. But again, it's relatively early. And we think it's going to be a good strong contributor to our base business. Nothing in terms of giving any guidance here, but we're going to be obviously tracking prescriptions and physician counts and all the major KPIs that you would think regarding the brand. So that's where it's at right now. It is in the compensation plan for our commercial team. So there is focus and attention and promotion happening behind it. In terms of -- I believe you wanted to maybe look at more managed care and some of the points that we're having in the discussions with the various payers. Is that correct? Brandon Folkes: Yes. Claude Maraoui: Yes. Ramsey, did you want to jump back in here for that, please? Ramsey Alloush: Yes. And I think more specifically, Brandon, you were looking at where the friction is out in the market in terms of barriers, if you will, UMs. And we talk -- again, we talk about what the quality of lives are, and that's that 72 million, that 38%. But we also talked about access, which is pathway to a prescription, and that's more like 169 million lives. 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, right, in terms of that friction. That could be, for example, a prior auth or a double step that's in place, right? And so our job is identifying where those bottlenecks are, and we've been doing that on a consistent basis and speaking with those plans to see what it takes to get Emrosi down to sort of our benchmark, which is that quality single-step therapy or better. Obviously, from a clinical perspective, we have a strong value proposition. There are other drugs obviously available to them in the market from a rosacea treatment standpoint. And our category, again, we're saying a single step through any of those either oral or topical agents. Typically, when prescribers do prescribe for rosacea, they're using an oral and they may -- they also may supplement with a topical. But again, with our head-to-head data, the fact that our drug works in essentially half the time as rosacea, right, 8 weeks, we achieved the results greater than what rosacea did in our study in 16 weeks with strong value proposition, not only from a clinical perspective, but from a financial perspective. And this is resonating very well with the payers. But this isn't a very highly managed category, right, in terms of rosacea and kind of what the payers have on their plates, right, when you think of GLP-1s, other oncology, rare disease orphan drugs. So it takes a little bit more time. We are having -- again, we have great contacts with the important plans that we think are going to make the difference that, for example, may have a double step or a PA and why we think it's not appropriate to have sort of that UM in place for our drug, given the data and the financial profile for it. And so yes, I'd say the scripts that are going through with those are still going to continue to grow through, but they could go through at a higher rate, which covered, which is going to improve our reimbursement if we're able to remove and reduce those barriers, and that's what we're going to continue to do through Q3, Q3, Q4 and into 2028 as well. Claude Maraoui: Yes. Brandon, in terms of negotiation, that's what our market access team is doing. I think Ramsey set it up very well here. But we're negotiating potential look backs. It could be 6 months, 12 months, a year plus. Those -- if they've tried a topical or if they've tried an oral, we're playing with the and/or part of it here. So again, I think where we stand today at about 38% quality, one step at it or less, is a good position. We could certainly increase that number significantly, but we are holding to our strategy of trying to get the least resistance and to simply get the patients on what we believe to be the best treatment for rosacea orally right now. So those are the types of things that we go back and forth with. And we think taking that time is important, and it makes a lot of business sense. Operator: [Operator Instructions] The next question comes from Thomas Flaten with Lake Street. Thomas Flaten: Congrats on the Emrosi performance. Just a few for me. Claude, with respect to the new reps that were hired, can I assume those were white space hires? Or are you already territory splitting? Claude Maraoui: 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. So you have a little mix of both, Tom. Thomas Flaten: Got it. And then with respect to physician utilization, have they queued in on a specific element of your efficacy, I mean, time or overall resolution erythema that's the driving reason for their use? Claude Maraoui: In terms of just physician feedback, it is astounding, how they are looking at the efficacy. The superiority factor that we have that the FDA gave us is resonating well with patients. And when the physicians are seeing them back a month or 2 after their initial prescription, the reinforcement from the patient and what the clearance rate is rather incredible. Again, we're doing the -- what rosacea did in half the time. And I think that's really a major part of it. Plus the other factor is you're talking about a fantastic safety profile, very tolerable. They're not getting that pushback that they could have had, for example, with acne and immediate release minocycline, they're not getting that same pushback with this proprietary formulation of Emrosi. So they like what they're getting, and I think they're building confidence. Thomas Flaten: And then back to the physicians again, if I may. Are there specific subtypes of rosacea patients that they're primarily using it on? Or are they kind of using it more broadly than having identified a subtype? Claude Maraoui: Well, we're indicated for papulopustular rosacea. So certainly, that severe -- moderate to severe, our indication allows us to go broader. But you're talking about moderate and severe patients, I would say, are what they're putting Emrosi in that category. And I'm generalizing here, but I would tell you that, that would be where the niche is for the brand right now. Operator: This concludes our question-and-answer session and concludes the conference call today. Thank you for attending today's presentation. You may now disconnect. 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Total net revenue increased 14% to $18.7 million for second quarter of 2026 compared to second quarter of 2025 Partnered programs continue to advance with Crystalys Therapeutics announcing its $130 million Series B financing to support the late-stage global development and commercialization preparation for dotinurad, and royalties generated from the launches of ZYCUBO® and UNLOXCYT™ MIAMI, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Fortress Biotech, Inc. (Nasdaq: FBIO) (“Fortress”), an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings and dividend and royalty income, today announced financial results and recent corporate highlights for the second quarter ended June 30, 2026. Lindsay A. Rosenwald, M.D., Fortress’ Chairman, President and Chief Executive Officer, said, “The second quarter of 2026 reflected continued momentum across our portfolio and further progress in unlocking long-term shareholder value. Our subsidiary Urica Therapeutics, Inc.’s (“Urica”) equity position in Crystalys Therapeutics, Inc. (“Crystalys”) was strengthened by Crystalys' $130 million Series B financing, which will support the late-stage global development and commercialization preparation for dotinurad, a next-generation oral URAT1 inhibitor for gout, on which Urica is entitled to a 3% royalty on future net sales. Journey Medical also continues to scale Emrosi®, securing a third major GPO contract that expanded payer access to over 150 million commercial lives. Coming off the momentum of ZYCUBO®'s approval and the $205 million PRV sale in the first quarter, we enter the second half of 2026 with a favorable cash balance that positions us to continue executing on our pipeline and business development priorities.” Dr. Rosenwald added, “We continued to see encouraging clinical progress this quarter on our partnered programs. AstraZeneca reported additional prespecified subgroup analyses for anselamimab (formerly CAEL-101) showing a 62% improvement in survival and a 71% reduction in cardiovascular hospitalizations among kappa predominant light chain isotype patients in the CARES program, and indicated that it plans to submit these findings to regulatory authorities. Crystalys also continues to advance dotinurad's two global Phase 3 trials while initiating a new Phase 2 study in difficult-to-treat gout, broadening the program's potential patient population. With a diversified portfolio spanning commercial, late-stage, and development-stage programs, including royalties, milestones and equity, and a strengthened balance sheet following the ZYCUBO® PRV monetization, we believe Fortress is well positioned to advance strategic initiatives and drive long-term value for our shareholders.” Recent Corporate Highlights1: Commercial Portfolio Updates Journey Medical Expands Payer Access for Emrosi®. At the end of March 2025, our partner company Journey Medical Corporation (“Journey Medical”) commercially launched Emrosi® (40mg Minocycline Hydrochloride Modified-Release Capsules, consisting of 10mg immediate release and 30mg extended release pellets), also known as DFD-29, for inflammatory lesions of rosacea. Emrosi® was approved by the FDA in November 2024 and is available by prescription at specialty pharmacy chains. In April 2026, Journey Medical announced that it secured a contract with a third major group purchasing organization (GPO) for Emrosi®. As such, payer access for Emrosi® expanded to over 150 million commercial lives as of April 1, 2026, which equates to approximately 85% of all commercial lives in the United States that have access to Emrosi®. Journey Medical reported net product revenues of $17.8 million for the second quarter of 2026, compared to net product revenues of $15.0 million for the second quarter ended June 30, 2025. Royalties. In the second quarter of 2026, Cyprium Therapeutics, Inc. (“Cyprium”) recognized $0.2 million in royalty revenue on net sales of ZYCUBO®, and Fortress recognized $0.1 million in royalty income (contingent consideration) on net sales of UNLOXCYT™, following their recent commercial launches. Clinical Updates Phase 3 CARES Results for Anselamimab (CAEL-101); Regulatory Submission of Prespecified Subgroup Analysis Planned. In the second quarter of 2026, AstraZeneca announced additional prespecified subgroup analyses in patients with kappa predominant light chain isotype, showing that anselamimab (formerly known as CAEL-101) improved survival by 62%, measured by time to all-cause mortality (HR 0.38; 95% CI 0.17, 0.86; nominal p=0.012), and reduced the frequency of cardiovascular hospitalizations by 71% (incidence risk ratio 0.29; 95% CI 0.10, 0.87; nominal p=0.028) compared to placebo in the subgroup with kappa AL amyloidosis. Although anselamimab did not achieve statistical significance for the primary endpoint in its Phase III Cardiac Amyloid Reaching for Extended Survival (“CARES”) clinical program for Mayo stages IIIa and IIIb AL amyloidosis patients, the drug showed clinically meaningful improvement in the prespecified subgroup and was well tolerated. AstraZeneca indicated that the company plans to submit the prespecified subgroup analysis from the CARES trials to regulatory authorities and disclosed regulatory submissions in the EU and Japan. Dotinurad Progresses in Phase 3 Development with Crystalys Series B Financing of $130 million; Initiation of Phase 2 Clinical Trial for Difficult-to-Treat Gout. In July 2026, Crystalys, in which our majority-owned and controlled subsidiary company Urica maintains an equity position, announced a $130 million Series B financing to support the late-stage global clinical development and commercialization preparation for dotinurad. Patients continue to be enrolled in Crystalys’ two randomized, double-blind, multicenter global Phase 3 trials evaluating dotinurad, a next-generation, once daily oral, URAT1 inhibitor with potential for best-in-class safety and efficacy for the treatment of gout. In the second quarter of 2026, Crystalys also announced the initiation of a Phase 2 study in difficult-to-treat gout. Other Portfolio Programs Continue to Advance with Potential Upcoming Data and Trial Initiations. Triplex is currently in multiple ongoing clinical trials for cytomegalovirus (CMV) treatment and prevention in solid organ and stem cell transplants, combination trials with CAR T cell therapies for hematologic malignancies, and a potential data readout by the end of 2026 for prevention and control of CMV in patients co-infected with HIV and CMV. A clinical trial evaluating MB-109, a combination CAR T cell therapy and oncolytic virus, is anticipated to initiate in the fourth quarter of 2026 for patients with IL13Rα2-positive recurrent glioblastoma and high-grade astrocytoma. There are also ongoing and planned regulatory interactions with the FDA on trial designs for ATX-04 (selective β2-adrenergic agonist) for patients with Pompe disease and FB-606 (membrane stabilizer) for patients with Duchenne muscular dystrophy. Financial Results: As of June 30, 2026, Fortress’ consolidated cash and cash equivalents totaled $196.6 million, compared to $79.4 million as of December 31, 2025, an increase of $117.2 million year-to-date. Fortress’ consolidated cash and cash equivalents totaling $196.6 million as of June 30, 2026, includes $153.8 million attributable to Fortress and the private subsidiaries, $1.9 million attributable to Avenue, $15.1 million attributable to Mustang Bio and $25.6 million attributable to Journey Medical. Fortress’ consolidated net revenue totaled $18.7 million for the second quarter ended June 30, 2026, $17.8 million of which was generated from our marketed dermatology products. This compares to consolidated net revenue totaling $16.4 million for the second quarter of 2025, $15.0 million of which was generated from our marketed dermatology products. Consolidated research and development expenses totaled $0.8 million for the second quarter ended June 30, 2026, compared to $8.1 million for the second quarter ended June 30, 2025. Consolidated selling, general and administrative costs were $20.8 million for the second quarter ended June 30, 2026, compared to $38.8 million for the second quarter ended June 30, 2025. Consolidated net loss attributable to common stockholders was $(2.5) million, or $(0.08) per share basic and diluted, for the second quarter ended June 30, 2026, compared to net income attributable to common stockholders of $13.4 million, or $0.50 per share basic, and $0.45 per share diluted, for the second quarter ended June 30, 2025. About Fortress Biotech Fortress Biotech, Inc. (“Fortress”) is an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings and dividend and royalty income. The company has a portfolio of multiple marketed prescription pharmaceutical products and programs in development at Fortress, at its majority-owned and majority-controlled partners and subsidiaries and at partners and subsidiaries it founded and in which it holds significant minority ownership positions. Fortress’ portfolio is being commercialized and developed for various therapeutic areas including oncology, dermatology, and rare diseases. Fortress’ model is focused on leveraging its significant biopharmaceutical industry expertise and network to further expand and advance the company’s portfolio of product opportunities. Fortress has established partnerships with some of the world’s leading academic research institutions and biopharmaceutical companies to maximize each opportunity to its full potential, including AstraZeneca, City of Hope, Nationwide Children’s Hospital, Columbia University, Dana-Farber Cancer Center and Sentynl Therapeutics. For more information, visit www.fortressbiotech.com. Forward-Looking StatementsStatements 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 “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology are generally 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 negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include risks relating to: our growth strategy, financing and strategic agreements and relationships; our need for substantial additional funds and uncertainties relating to financings; uncertainty related to the timing and amounts expected to be realized from future milestone, contingent value right, royalty or similar future revenue streams, if at all; our ability to identify, acquire, close and integrate product candidates successfully and on a timely basis; our ability to attract, integrate and retain key personnel; the early stage of product candidates under development; the results of research and development activities; uncertainties relating to preclinical and clinical testing; our ability to obtain regulatory approval for products under development; our ability to successfully commercialize products for which we receive regulatory approval or receive royalties or other distributions from third parties; 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; as well as 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 changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein. Company Contact:Jaclyn JaffeFortress Biotech, Inc.(781) [email protected] Media Relations Contact:Tony Plohoros6 Degrees(908) [email protected] ___________________________1 This press release references products being developed or commercialized by Fortress, by Fortress’ private or public subsidiaries (referred to herein as “subsidiaries” or “partner companies”) and by entities with whom one of the foregoing parties has a significant business relationship, such as an exclusive license or an ongoing product-related payment obligation (such entities referred to herein as “partners”). The words “we”, “us” and “our” may refer to Fortress individually, to one or more of our subsidiaries and/or partner companies, or to all such entities as a group, as dictated by context.

Interested in Fortress Biotech, Inc.? Here are five stocks we like better. Revenue grew 23% year over year to $18.5 million, led by Emrosi, which generated $8.1 million in quarterly revenue. Emrosi prescriptions rose about 20% sequentially to 36,000, while the number of dermatology prescribers exceeded 4,500. Payer access and pricing improved as commercial coverage with single-step edits or better increased to approximately 38% of covered lives, up from 34% in the first quarter. Management expects reimbursement gains to continue supporting Emrosi’s average selling price. Profitability strengthened significantly: second-quarter EBITDA reached $1.4 million and adjusted EBITDA was $2.9 million, compared with losses a year earlier, while the GAAP net loss narrowed to $300,000. Management continues to view 2026 as a potential breakout year. Journey Medical reported higher second-quarter revenue and improved profitability, driven by continued prescription growth and improving payer reimbursement for its rosacea treatment Emrosi. Chief Executive Officer Claude Maraoui said the company generated positive EBITDA in the second quarter and continues to expect 2026 to be a “breakout year” for both revenue growth and profitability. Total net product revenue rose 23% year over year, while operating expenses increased by less than 1%, according to management. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Total revenue for the second quarter was $18.5 million, up from $15 million in the comparable period of 2025. Chief Financial Officer Joseph Benesch said the increase was primarily attributable to commercial demand for Emrosi, which generated $8.1 million in net revenue during the quarter. Emrosi prescriptions totaled approximately 36,000 in the second quarter, compared with about 30,000 in the first quarter, representing roughly 20% sequential growth. Maraoui said the quarterly increase accelerated from 11% sequential prescription growth in the prior quarter. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be New prescriptions also increased. The company recorded more than 5,300 new Emrosi prescriptions in June, compared with an average of about 4,700 during the prior three months. Management described June as an all-time monthly high for new prescriptions. In July, Maraoui said Symphony data showed approximately 14,000 Emrosi prescriptions, up from roughly 13,000 in June. The number of unique dermatology prescribers for Emrosi exceeded 4,500, up from approximately 3,700 at the end of the first quarter and 3,200 at the end of 2025. Maraoui said the company sees substantial opportunity to expand that base, citing more than 15,000 dermatologists in the U.S. → First Solar’s Profit Engine Faces a New Policy Test in Washington Journey Medical added five dermatology sales professionals during the second quarter. The representatives joined in late July and were deployed in the field, with most assigned to previously uncovered territories and some placed in areas where management split existing territories due to dermatologist concentration and market penetration. Management said Emrosi’s calculated average selling price increased in the second quarter from the first quarter, following an increase in the first quarter from the fourth quarter of 2025. Maraoui attributed the trend to a growing portion of prescriptions receiving reimbursement. During the question-and-answer session, Maraoui said there were no inventory movements that affected the second-quarter average selling price. He said the company expects sequential pricing gains to continue as its payer strategy produces more reimbursement through insurance plans. Journey Medical completed agreements with the three largest group purchasing organizations earlier this year, providing plan access for Emrosi across more than 169 million of 192 million covered commercial lives in the U.S. The company is now focused on securing what it considers high-quality formulary coverage, defined as a single-step edit or better. The share of commercial lives with that level of coverage increased to approximately 38% from 34% in the first quarter. Ram Alloush, Journey Medical’s chief operating officer and general counsel, said a large national health plan added Emrosi to its formulary in early August. He said the addition should increase the number of patients with lower-friction access and support average selling price improvement. Alloush said remaining access barriers can include prior authorization requirements or double-step therapy requirements. The company is working with plans to reduce those barriers, arguing that Emrosi’s clinical and financial profile supports less restrictive coverage. Journey Medical reported a 67% gross margin in the second quarter, unchanged from the prior-year quarter. Selling, general and administrative expense declined to $10.9 million from $11.9 million a year earlier, which Benesch said primarily reflected launch-related Emrosi spending in the prior-year period. The company’s GAAP net loss narrowed to $300,000, or $0.01 per basic and diluted share, from a loss of $3.8 million, or $0.16 per basic and diluted share, a year earlier. EBITDA was positive at $1.4 million in the second quarter, versus a $1.9 million loss in the prior-year quarter. Adjusted EBITDA was positive at $2.9 million, compared with a $500,000 loss a year earlier. Cash totaled $25.6 million at June 30, compared with $24.1 million at Dec. 31, 2025. Benesch said some marketing and advertising programs could increase SG&A in the second half, though he expects SG&A as a percentage of revenue to remain generally consistent. Maraoui said Qbrexza remains a meaningful product for the company and is the second priority for its field sales force after Emrosi. He said Qbrexza has historically generated approximately $25 million to $26 million and that quarterly performance may fluctuate based on patient and payer mix. Demand increased in June and July, with prescriptions surpassing 14,500 in June and nearing 15,000 in July, according to management. The company also launched Eurax Cream, a 10% crotamiton anti-itch treatment, in July after training its commercial team in June. Maraoui said the non-steroidal, non-histaminic and fragrance-free product is now the third promotional priority behind Emrosi and Qbrexza. While management said early physician feedback has been positive, it did not provide revenue guidance for Eurax. Journey Medical is also exploring out-licensing opportunities for patented products outside the U.S. Alloush said the company holds global rights and patent portfolios for Emrosi, Qbrexza, Amzeeq and Zilxi. He said discussions regarding additional international partnerships are ongoing, particularly for Emrosi, although reaching agreements can take time. Maraoui said Emrosi remains the company’s highest commercial priority and that Journey Medical intends to continue pursuing revenue growth, expanded payer access and sustainable profitability. Fortress Biotech, Inc is a clinical‐stage biopharmaceutical company focused on acquiring, developing and commercializing novel pharmaceutical and biotechnology products. Headquartered in New York, the company operates through a network of majority‐owned subsidiaries that target areas of high unmet medical need, including oncology, rare diseases and dermatology. Fortress Biotech's business model emphasizes in‐licensing or acquiring promising drug candidates and coordinating their development through specialized affiliate companies, allowing for flexible capital allocation and focused management of individual programs. Through its portfolio of subsidiaries, Fortress Biotech advances a diversified pipeline spanning small molecules, biologics and cell therapies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Fortress Biotech Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Total revenues were $18.5 million for the second quarter of 2026, reflecting 23% growth from the prior-year quarter Emrosi® revenues were $8.1 million for the second quarter of 2026 Strong revenue growth and disciplined cost management continue drive to profitability Company to hold conference call today at 4:30 p.m. ET SCOTTSDALE, Ariz., Aug. 12, 2026 (GLOBE NEWSWIRE) -- Journey Medical Corporation (Nasdaq: DERM) (“Journey Medical,” “the Company,” “we” or “our”), a commercial-stage pharmaceutical company focused on developing, selling and marketing FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions, today announced financial results and recent corporate highlights for the second quarter ended June 30, 2026. Claude Maraoui, Journey Medical’s Co-Founder, President and Chief Executive Officer, said, “We delivered solid performance in the second quarter, highlighted by 23% total net revenue growth, year over year, and continued progress toward profitability, driven by revenue growth and ongoing disciplined investment in our dermatology commercial infrastructure. Momentum behind Emrosi® remains strong, with sales of the product up significantly compared to both the prior-year period and the first quarter of this year. Prescription demand and payer coverage for Emrosi® are increasing as we establish the product as the best-in-class oral treatment for patients suffering from rosacea. With this progress and over $25 million in cash, we believe that we are well-positioned to execute on our strategy and deliver strong financial performance going forward.” Financial Results: Total revenues were $18.5 million for the second quarter of 2026, a 23% increase from $15.0 million for the second quarter of 2025. The increase was driven by continued commercial demand momentum for Emrosi®, which generated revenues of $8.1 million for the quarter ended June 30, 2026. The Company’s gross margin(1) was 67% for the second quarter of 2026, consistent with the prior-year quarter. Selling, general and administrative expenses were $10.9 million for the second quarter of 2026, a decrease of $1.0 million from the second quarter of 2025, primarily due to a reduction in launch-related spending for Emrosi® compared to the prior year quarter. The Company’s GAAP Net Loss narrowed to $0.3 million, or $(0.01) per share basic and diluted, for the second quarter of 2026, compared to a net loss of $3.8 million, or $(0.16) per share basic and diluted, for the second quarter of 2025. The Company’s non-GAAP results in the table below reflect positive EBITDA and Adjusted EBITDA for both the three and six-month periods ended June 30, 2026. At June 30, 2026, the Company had $25.6 million in cash and cash equivalents, as compared to $24.1 million in cash and cash equivalents at December 31, 2025. Recent Corporate Highlights: Emrosi® total prescriptions (TRx) were approximately 36,000 for the second quarter of 2026, compared to approximately 30,000 for the first quarter of 2026 and 27,000 for the fourth quarter of 2025. Conference Call and Webcast Information Journey Medical management will conduct a conference call and audio webcast on August 12, 2026, at 4:30 p.m. ET. To listen to the conference call, interested parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Journey Medical conference call. Participants can register for the conference call here: https://dpregister.com/sreg/10210876/1048acbd764. Please note that registered participants will receive their dial-in number upon registration. A live audio webcast can be accessed on the News and Events page of the Investors section of Journey Medical’s website, www.journeymedicalcorp.com, and will remain available for replay for approximately 30 days after the meeting. (1)  We define gross margin as total revenue less cost of goods sold divided by total revenue. About Journey Medical CorporationJourney Medical Corporation (Nasdaq: DERM) (“Journey Medical”) is a commercial-stage pharmaceutical company that primarily focuses on developing, selling and marketing FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient sales and marketing model. The Company currently markets nine branded FDA-approved prescription drugs that help treat and heal common skin conditions. The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some of dermatology’s most successful prescription brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). Journey Medical’s common stock is registered under the Securities Exchange Act of 1934, as amended, and the company files periodic reports with the U.S. Securities and Exchange Commission (“SEC”). For additional information about Journey Medical, visit www.journeymedicalcorp.com. Forward-Looking StatementsThis press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words “the Company”, “we”, “us” and “our” may refer to Journey Medical. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. The words “anticipate,” “believe,” “continue,” “estimate,” “may,” “expect,” “will,” “could,” “project,” “intend,” “potential” and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include: the fact that our products and product candidates are subject to time and cost intensive regulation and clinical testing and as a result, may never be successfully developed or commercialized; a substantial portion of our sales derive from products that may become subject to third-party generic competition because their period of exclusivity has ended or they are without patent protection, subjecting them to the potential introduction of new competitor products and/or an increase in market share of existing competitor products, either of which could have a significant adverse impact on our operating income; we operate in a heavily regulated industry, and we cannot predict the impact that any future legislation or administrative or executive action may have on our operations; our revenue is dependent mainly upon sales of our dermatology products and any setback relating to the sale of such products could impair our operating results; competition could limit our products’ commercial opportunity and profitability, including competition from manufacturers of generic versions of our products; the risk that our products do not achieve broad market acceptance, including by government and third-party payors; our reliance on third parties for several aspects of our operations; our dependence on our ability to identify, develop, and acquire or in-license products and integrate them into our operations, at which we may be unsuccessful; the dependence of the success of our business, including our ability to finance our company and generate additional revenue, on the successful commercialization of Emrosi® and the successful development, regulatory approval and commercialization of any future product candidates that we may develop, in-license or acquire; clinical drug development is very expensive, time consuming, and uncertain and our clinical trials may fail to adequately demonstrate the safety and efficacy of our current or any future product candidates; our competitors could develop and commercialize products similar or identical to ours; risks related to the protection of our intellectual property and our potential inability to maintain sufficient patent protection for our technology and products; our business and operations would suffer in the event of computer system failures, cyber-attacks, or deficiencies in our or our third parties’ cybersecurity; the substantial doubt expressed about our ability to continue as a going concern; the effects of major public health issues, epidemics or pandemics on our product revenues and any future clinical trials; our potential need to raise additional capital; Fortress controls a voting majority of our common stock, which could be detrimental to our other shareholders; as well as other risks described in Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Reports on Form 10-Q, and our other filings we make with the SEC. 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 changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Company Contact:Jaclyn Jaffe (781) [email protected] Media Relations Contact:Tony Plohoros6 Degrees(908) [email protected] Use of Non-GAAP Measures: In addition to the GAAP financial measures as presented in our Form 10-Q that will be filed with the Securities and Exchange Commission (“SEC”), the Company has, in this press release, included certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, Adjusted EBITDA per share basic and Adjusted EBITDA per share diluted. We define EBITDA as net income (loss) excluding interest, taxes and depreciation and amortization and we define Adjusted EBITDA as net income (loss) excluding interest, taxes and depreciation, less certain other non-cash and/or infrequent items not considered to be normal, recurring operating expenses, including, share-based compensation expense, amortization and impairments of acquired intangible assets, inventory step-ups from the purchases of intangible assets and products, severance, and foreign exchange transaction losses. In particular, we exclude the following matters for the reasons more fully described below: Share-Based Compensation Expense: We exclude share-based compensation from our adjusted financial results because share-based compensation expense, which is non-cash, although a recurring expense, fluctuates from period to period based on factors that are not within our control, such as our stock price on the dates share-based grants are issued. Beginning in the first quarter of 2026, we no longer exclude short-term research and development expenses (including any one-time license and milestone payments) from our Non-GAAP Adjusted EBITDA results. Prior period Non-GAAP Adjusted EBITDA results have been revised to reflect this change. Adjusted EBITDA per share basic and Adjusted EBITDA per share diluted are determined by dividing the resulting Adjusted EBITDA by the number of shares outstanding on an actual and fully diluted basis. Management believes the use of these non-GAAP measures provides meaningful supplemental information regarding the Company’s performance because (i) they allow for greater transparency with respect to key measures used by management in its financial and operational decision-making, (ii) they exclude the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company’s core operating performance and that may obscure trends in the Company’s core operating performance and (iii) they are used by institutional investors and the analyst community to help analyze the Company's results. However, Adjusted EBITDA, Adjusted EBITDA per share basic, Adjusted EBITDA per share diluted and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the Company and the manner in which they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the Company’s competitors. The table below provides a reconciliation from GAAP to non-GAAP measures:

Company to host conference call to discuss financial results and provide a corporate update on August 12, 2026 at 4:30 p.m. ET SCOTTSDALE, Ariz., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Journey Medical Corporation (“Journey Medical” or the “Company”) (Nasdaq: DERM), a commercial-stage pharmaceutical company primarily focused on developing, selling and marketing U.S. Food and Drug Administration (“FDA”)-approved prescription pharmaceutical products for the treatment of dermatological conditions, today announced the Company will release its second quarter 2026 financial results after the U.S. financial markets close on Wednesday, August 12, 2026. Journey Medical management will conduct a conference call and audio webcast on Wednesday, August 12, 2026 at 4:30 p.m. ET. To listen to the conference call, interested parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to join the Journey Medical conference call. Participants can register for the conference by navigating to https://dpregister.com/sreg/10210876/1048acbd764. Please note that registered participants will receive their dial-in number upon registration. A live audio webcast can be accessed on the News and Events page of the Investors section of Journey Medical’s website, www.journeymedicalcorp.com, and will remain available for replay for approximately 30 days after the conference call. About Journey Medical CorporationJourney Medical Corporation (Nasdaq: DERM) (“Journey Medical”) is a commercial-stage pharmaceutical company that primarily focuses on developing, selling and marketing FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient sales and marketing model. The Company currently markets nine branded FDA-approved prescription drugs that help treat and heal common skin conditions. The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some of dermatology’s most successful prescription brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). Journey Medical’s common stock is registered under the Securities Exchange Act of 1934, as amended, and it files periodic reports with the U.S. Securities and Exchange Commission (“SEC”). For additional information about Journey Medical, visit www.journeymedicalcorp.com. Company Contact:Jaclyn Jaffe Journey Medical Corporation(781) [email protected] Media Relations Contact:Tony Plohoros6 Degrees(908) [email protected]

ZYCUBO® approved by FDA to treat Menkes disease in the United States; Fortress subsidiary Cyprium Therapeutics closed the sale of its Rare Pediatric Disease Priority Review Voucher (PRV) for $205 million Fortress’ consolidated net income attributable to common stockholders for the first quarter of 2026 was $108.4 million, or $3.44 per common share (basic) and $2.82 per common share (diluted) MIAMI, May 14, 2026 (GLOBE NEWSWIRE) -- Fortress Biotech, Inc. (Nasdaq: FBIO) (“Fortress”), an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings and dividend and royalty income, today announced financial results and recent corporate highlights for the first quarter ended March 31, 2026. Lindsay A. Rosenwald, M.D., Fortress’ Chairman, President and Chief Executive Officer, said, “The first quarter of 2026 marked a pivotal period for Fortress, highlighted by significant execution across our portfolio and meaningful progress in enhancing long‑term shareholder value. The FDA approval of ZYCUBO® for Menkes disease and the subsequent monetization of Cyprium’s PRV for $205 million represent important validation of our business model. We deployed a portion of these proceeds to strengthen our balance sheet through debt reduction, lowering our outstanding principal with Oaktree to $15.0 million. We also continued to expand our pipeline through business development, including Avenue’s acquisition of ATX‑04 from Duke University, a clinically validated program with the potential to address significant unmet need in Pompe disease.” Dr. Rosenwald added, “Looking ahead, we expect to generate increasing royalty revenue from ZYCUBO® and UNLOXCYT™, along with potential milestone payments across our portfolio. In parallel, AstraZeneca’s regulatory submissions in the EU and Japan for anselamimab (formerly known as CAEL-101), underscore the continued optionality within our partnered assets for potential future sales milestones for Fortress and approval milestones in the U.S. We have a diversified portfolio of commercial, late‑stage, and development‑stage programs and Fortress is well positioned to advance strategic initiatives and drive long‑term value for our shareholders.” Recent Corporate Highlights1: Regulatory and Monetization Updates ZYCUBO® Approved for Menkes Disease; Cyprium Sold PRV for $205 Million. In January 2026, the FDA approved ZYCUBO® (copper histidinate, formerly known as CUTX-101) for the treatment of Menkes disease in pediatric patients. A PRV was issued at approval and transferred to Cyprium under its agreement with Sentynl Therapeutics, Inc. (“Sentynl”). In March 2026, Cyprium closed the sale of the PRV for gross proceeds of $205 million. Cyprium is also eligible to receive tiered royalties on net sales of ZYCUBO® and up to approximately $128 million in aggregate sales milestones from Sentynl. In connection with the sale of the PRV, Cyprium redeemed all outstanding shares of its 9.375% Perpetual Preferred Stock pursuant to the previously disclosed terms of such securities. Checkpoint Acquired by Sun Pharma; Fortress Establishes Long-Term Royalty Stream. In May 2025, Fortress’ subsidiary, Checkpoint, was acquired by Sun Pharmaceutical Industries, Inc. (together with its subsidiaries and/or associated companies, “Sun Pharma”). Pursuant to the acquisition, Fortress received ~$28 million upfront, with the potential for an additional contingent value right payment of up to $4.8 million and a 2.5% royalty on future net sales of UNLOXCYT™ (cosibelimab-ipdl). UNLOXCYT™ was approved by the FDA in December 2024 to treat metastatic or locally advanced cutaneous squamous cell carcinoma (“cSCC”) in patients who are not candidates for curative surgery or radiation and was commercially launched in January 2026. Commercial Portfolio Updates Journey Medical Expands Payer Access for Emrosi®. At the end of March 2025, our partner company Journey Medical Corporation (“Journey Medical”) commercially launched Emrosi® (40mg Minocycline Hydrochloride Modified-Release Capsules, consisting of 10mg immediate release and 30mg extended release pellets), also known as DFD-29, for inflammatory lesions of rosacea. Emrosi® was approved by the FDA in November 2024 and is available by prescription at specialty pharmacy chains. In April 2026, Journey Medical announced that it secured a contract with a third major group purchasing organization (GPO) for Emrosi®. As such, payer access for Emrosi® expanded to over 150 million commercial lives as of April 1, 2026, which equates to approximately 85% of all commercial lives in the United States that have access to Emrosi®. Journey Medical reported net product revenues of $15.9 million for the first quarter of 2026, compared to net product revenues of $13.1 million for the first quarter ended March 31, 2025. Royalties. In the first quarter of 2026, Cyprium recognized $0.1 million in royalty revenue on net sales of ZYCUBO®. Clinical Updates Phase 3 CARES Results for Anselamimab (CAEL-101); Regulatory Submission of Prespecified Subgroup Analysis Planned. In July 2025, AstraZeneca announced that anselamimab (formerly known as CAEL-101) did not achieve statistical significance for the primary endpoint in its Phase III Cardiac Amyloid Reaching for Extended Survival (“CARES”) clinical program for Mayo stages IIIa and IIIb AL amyloidosis patients. However, the drug showed clinically meaningful improvement in a prespecified subgroup and was well tolerated. AstraZeneca indicated that the company plans to submit the prespecified subgroup analysis from the CARES trials to regulatory authorities and disclosed regulatory submissions in the EU and Japan. General Corporate: In March 2026, Fortress made aggregate prepayments on its loan with Oaktree, including a prepayment in connection with the sale of the PRV, reducing the outstanding principal balance to $15.0 million. In February 2026, Avenue entered into an exclusive worldwide license agreement with Duke University to acquire patent and know-how rights pertaining to ATX-04 (clenbuterol), a well-characterized small-molecule β2-adrenergic agonist, in clinical development for the treatment of Pompe disease. ATX-04 is a selective β2-adrenergic agonist with human proof-of-concept data demonstrating improved muscle function and enhanced response to enzyme replacement therapy. Avenue anticipates meeting with the FDA in 2026 to discuss and align on the design of a potential single pivotal trial for ATX-04 for Pompe disease. Financial Results: As of March 31, 2026, Fortress’ consolidated cash and cash equivalents totaled $255.8 million, compared to $79.4 million as of December 31, 2025, an increase of $176.5 million during the quarter. Fortress’ consolidated cash and cash equivalents totaling $255.8 million as of March 31, 2026, includes $209.9 million attributable to Fortress and the private subsidiaries, $2.4 million attributable to Avenue, $16.3 million attributable to Mustang Bio and $27.2 million attributable to Journey Medical. Fortress’ consolidated cash and cash equivalents totaled $79.4 million as of December 31, 2025, and includes $35.2 million attributable to Fortress and private subsidiaries, $2.9 million attributable to Avenue, $17.3 million attributable to Mustang and $24.1 million attributable to Journey Medical. Fortress’ consolidated net revenue totaled $16.0 million for the first quarter ended March 31, 2026, of which $15.9 million is generated from Journey Medical’s marketed dermatology products. This compares to consolidated revenue totaling $13.1 million for the first quarter of 2025. Consolidated research and development expenses totaled $0.5 million for the first quarter ended March 31, 2026, compared to $3.9 million for the first quarter ended March 31, 2025. Consolidated selling, general and administrative costs were $15.9 million for the first quarter ended March 31, 2026, compared to $25.7 million for the first quarter ended March 31, 2025. Consolidated net income attributable to common stockholders was $108.4 million, or $3.44 per share (basic) and $2.82 per share (diluted), for the first quarter ended March 31, 2026, compared to net loss attributable to common stockholders of $(12.7) million, or $(0.48) per share basic and diluted for the first quarter ended March 31, 2025. About Fortress Biotech Fortress Biotech, Inc. (“Fortress”) is an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings and dividend and royalty income. The company has a portfolio of multiple marketed prescription pharmaceutical products and programs in development at Fortress, at its majority-owned and majority-controlled partners and subsidiaries and at partners and subsidiaries it founded and in which it holds significant minority ownership positions. Fortress’ portfolio is being commercialized and developed for various therapeutic areas including oncology, dermatology, and rare diseases. Fortress’ model is focused on leveraging its significant biopharmaceutical industry expertise and network to further expand and advance the company’s portfolio of product opportunities. Fortress has established partnerships with some of the world’s leading academic research institutions and biopharmaceutical companies to maximize each opportunity to its full potential, including AstraZeneca, City of Hope, Nationwide Children’s Hospital, Columbia University, Dana-Farber Cancer Center and Sentynl Therapeutics. For more information, visit www.fortressbiotech.com. 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 “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology are generally 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 negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include risks relating to: our growth strategy, financing and strategic agreements and relationships; our need for substantial additional funds and uncertainties relating to financings; uncertainty related to the timing and amounts expected to be realized from future milestone, contingent value right, royalty or similar future revenue streams, if at all; our ability to identify, acquire, close and integrate product candidates successfully and on a timely basis; our ability to attract, integrate and retain key personnel; the early stage of product candidates under development; the results of research and development activities; uncertainties relating to preclinical and clinical testing; our ability to obtain regulatory approval for products under development; our ability to successfully commercialize products for which we receive regulatory approval or receive royalties or other distributions from third parties; 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; as well as 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 changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein. Company Contact: Jaclyn Jaffe Fortress Biotech, Inc. (781) 652-4500 [email protected] Media Relations Contact: Tony Plohoros 6 Degrees (908) 591-2839 [email protected] ____________________ 1 This press release references products being developed or commercialized by Fortress, by Fortress’ private or public subsidiaries (referred to herein as “subsidiaries” or “partner companies”) and by entities with whom one of the foregoing parties has a significant business relationship, such as an exclusive license or an ongoing product-related payment obligation (such entities referred to herein as “partners”). The words “we”, “us” and “our” may refer to Fortress individually, to one or more of our subsidiaries and/or partner companies, or to all such entities as a group, as dictated by context.

Total revenues for the first quarter ended March 31, 2026 increased 21% year-over-year to $16.0 million Emrosi® revenues were $6.3 million in the first quarter ended March 31, 2026 Cash position increased to $27 million, driven by strong financial performance Company to hold conference call today at 4:30 p.m. ET SCOTTSDALE, Ariz., May 13, 2026 (GLOBE NEWSWIRE) -- Journey Medical Corporation (Nasdaq: DERM) (“Journey Medical,” “the Company,” “we” or “our”), a commercial-stage pharmaceutical company focused on developing, selling and marketing FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions, today announced financial results and recent corporate highlights for the first quarter ended March 31, 2026. Claude Maraoui, Journey Medical’s Co-Founder, President and Chief Executive Officer, said, “2026 is off to a strong start, as we delivered solid revenue growth and cash generation in the first quarter of the year. Prescription demand and payer coverage for Emrosi® continue to increase, with the product’s differentiated clinical profile gaining traction as we establish Emrosi® as the best-in-class oral treatment for patients suffering from rosacea. Increasing refill rates and a growing number of Emrosi® prescribers are also building momentum behind the brand. Our net product sales growth in the quarter coupled with disciplined investment in our dermatology-focused commercial infrastructure resulted in improved operating leverage, and we expect this trend to continue going forward. With over $27 million in cash and Emrosi® entering its second year on the market, we remain well-positioned to continue to execute on our strategy and deliver strong financial progress throughout the year.” Financial Results: Total revenues were $16.0 million for the first quarter of 2026, reflecting a 21% increase from $13.1 million for the first quarter of 2025. The increase was driven by continued growth in Emrosi®, which generated revenues of $6.3 million for the quarter ended March 31, 2026, compared to $2.1 million for the quarter ended March 31, 2025. The Company’s gross margin(1) decreased to 61.0% for the first quarter of 2026, from 63.5% in the first quarter of 2025. The decrease resulted primarily from a $1.3 million non-recurring non-cash charge against cost of goods during the first quarter of 2026 associated with a write down of active pharmaceutical ingredient (API) inventory related to the 2021 Qbrexza® asset acquisition. Selling, general and administrative expenses decreased by $0.5 million to $10.1 million for the three-month period ended March 31, 2026, from $10.6 million for the three-month period ended March 31, 2025. The decrease is primarily due to lower Emrosi® launch costs compared to the prior year quarter. Net loss for the Company narrowed to $2.2 million, or $(0.08) per share basic and diluted, for the first quarter of 2026, compared to a net loss of $4.1 million, or $(0.18) per share basic and diluted, for the first quarter of 2025. The Company’s non-GAAP results in the table below reflect positive Adjusted EBITDA of $0.6 million, or $0.02 per share basic and diluted for the first quarter of 2026. This compares to negative Adjusted EBITDA of $(0.9) million, or $(0.04) loss per share basic diluted for the first quarter of 2025. Adjusted EBITDA, Adjusted EBITDA per share basic and Adjusted EBITDA per share diluted are non-GAAP financial measures, each of which are reconciled to the most directly comparable financial measures calculated in accordance with GAAP below. At March 31, 2026, the Company had $27.2 million in cash and cash equivalents as compared to $24.1 million in cash and cash equivalents at December 31, 2025. Recent Corporate Highlights: Emrosi® prescriptions totaled 29,968 for the first quarter of 2026 versus 27,023 in the fourth quarter of 2025. On April 21, 2026, the Company announced that it secured a contract with the third largest Group Purchasing Organization (GPO) in the United States for Emrosi®. With this contract in place, approximately 85% of all commercial lives in the nation have access to Emrosi®. Expanded payer access is anticipated to facilitate further growth in Emrosi® prescription demand. Conference Call and Webcast Information Journey Medical management will conduct a conference call and audio webcast on May 13, 2026, at 4:30 p.m. ET. To listen to the conference call, interested parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Journey Medical conference call. Participants can register for the conference call here: https://dpregister.com/sreg/10209171/10401b25258. Please note that registered participants will receive their dial-in number upon registration. A live audio webcast can be accessed on the News and Events page of the Investors section of Journey Medical’s website, www.journeymedicalcorp.com, and will remain available for replay for approximately 30 days after the meeting. (1) We define gross margin as total revenue less cost of goods sold divided by total revenue. About Journey Medical Corporation Journey Medical Corporation (Nasdaq: DERM) (“Journey Medical”) is a commercial-stage pharmaceutical company that primarily focuses on developing, selling and marketing FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient sales and marketing model. The Company currently markets eight branded FDA-approved prescription drugs that help treat and heal common skin conditions. The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some of dermatology’s most successful prescription brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). Journey Medical’s common stock is registered under the Securities Exchange Act of 1934, as amended, and it files periodic reports with the U.S. Securities and Exchange Commission (“SEC”). For additional information about Journey Medical, visit www.journeymedicalcorp.com. Forward-Looking Statements This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words “the Company”, “we”, “us” and “our” may refer to Journey Medical. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. The words “anticipate,” “believe,” “continue,” “estimate,” “may,” “expect,” “will,” “could,” “project,” “intend,” “potential” and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include: the fact that our products and product candidates are subject to time and cost intensive regulation and clinical testing and as a result, may never be successfully developed or commercialized; a substantial portion of our sales derive from products that may become subject to third-party generic competition because their period of exclusivity has ended or they are without patent protection, subjecting them to the potential introduction of new competitor products and/or an increase in market share of existing competitor products, either of which could have a significant adverse impact on our operating income; we operate in a heavily regulated industry, and we cannot predict the impact that any future legislation or administrative or executive action may have on our operations; our revenue is dependent mainly upon sales of our dermatology products and any setback relating to the sale of such products could impair our operating results; competition could limit our products’ commercial opportunity and profitability, including competition from manufacturers of generic versions of our products; the risk that our products do not achieve broad market acceptance, including by government and third-party payors; our reliance on third parties for several aspects of our operations; our dependence on our ability to identify, develop, and acquire or in-license products and integrate them into our operations, at which we may be unsuccessful; the dependence of the success of our business, including our ability to finance our company and generate additional revenue, on the successful commercialization of Emrosi® and the successful development, regulatory approval and commercialization of any future product candidates that we may develop, in-license or acquire; clinical drug development is very expensive, time consuming, and uncertain and our clinical trials may fail to adequately demonstrate the safety and efficacy of our current or any future product candidates; our competitors could develop and commercialize products similar or identical to ours; risks related to the protection of our intellectual property and our potential inability to maintain sufficient patent protection for our technology and products; our business and operations would suffer in the event of computer system failures, cyber-attacks, or deficiencies in our or our third parties’ cybersecurity; the substantial doubt expressed about our ability to continue as a going concern; the effects of major public health issues, epidemics or pandemics on our product revenues and any future clinical trials; our potential need to raise additional capital; Fortress controls a voting majority of our common stock, which could be detrimental to our other shareholders; as well as other risks described in Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Reports on Form 10-Q, and our other filings we make with the SEC. 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 changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Company Contact: Jaclyn Jaffe (781) 652-4500 [email protected] Media Relations Contact: Tony Plohoros 6 Degrees (908) 591-2839 [email protected] Use of Non-GAAP Measures: In addition to the GAAP financial measures as presented in our Form 10-Q that will be filed with the Securities and Exchange Commission (“SEC”), the Company has, in this press release, included certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, Adjusted EBITDA per share basic and Adjusted EBITDA per share diluted. We define EBITDA as net income (loss) excluding interest, taxes and depreciation and amortization and we define Adjusted EBITDA as net income (loss) excluding interest, taxes and depreciation, less certain other non-cash and/or infrequent items not considered to be normal, recurring operating expenses, including, share-based compensation expense, amortization and impairments of acquired intangible assets, inventory step-ups from the purchases of intangibles assets and products, severance, and foreign exchange transaction losses. In particular, we exclude the following matters for the reasons more fully described below: Share-Based Compensation Expense: We exclude share-based compensation from our adjusted financial results because share-based compensation expense, which is non-cash, although a recurring expense, fluctuates from period to period based on factors that are not within our control, such as our stock price on the dates share-based grants are issued. Amortization and impairments of Acquired Intangible assets: We exclude the impact of certain amounts recorded in connection with the acquisitions of intangible assets that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. These amounts may include non-cash items such as the amortization impairments of acquired intangible assets and amortization of step-ups of acquisition accounting adjustments to inventories. Beginning in the first quarter of 2026, we no longer exclude short-term research and development expenses (including any one-time license and milestone payments) from our Non-GAAP Adjusted EBITDA results. Prior period Non-GAAP Adjusted EBITDA results have been revised to reflect this change. Adjusted EBITDA per share basic and Adjusted EBITDA per share diluted are determined by dividing the resulting Adjusted EBITDA by the number of shares outstanding on an actual and fully diluted basis. Management believes the use of these non-GAAP measures provides meaningful supplemental information regarding the Company’s performance because (i) they allow for greater transparency with respect to key measures used by management in its financial and operational decision-making, (ii) they exclude the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company’s core operating performance and that may obscure trends in the Company’s core operating performance and (iii) they are used by institutional investors and the analyst community to help analyze the Company's results. However, Adjusted EBITDA, Adjusted EBITDA per share basic, Adjusted EBITDA per share diluted and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the Company and the manner in which they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the Company’s competitors. The table below provides a reconciliation from GAAP to non-GAAP measures: