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TICKERS: CKPT, FBIO, MBIO

Platform Therapeutics Co. Posts Positive Revenue Surprise in Q2 on Higher Dermatology Product Sales
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Dawson James Securities Inc. stated in a research update that Fortress Biotech Inc.'s dermatology business shows good growth potential and helped drive a positive revenue surprise in Q2/21. Dawson James has a "Buy" rating on the stock but noted that the real opportunity for the company lies with its vast pipeline and partnerships, which offer real upside potential.

Dawson James Securities Inc.'s Senior Healthcare Analyst Jason Kolbert wrote in an August 17 research note that Fortress Biotech Inc.'s (FBIO:NASDAQ) commercially marketed dermatology products aided in delivering a positive revenue surprise in Q2/21.

The report indicated that during Q2/21, Fortress Biotech reported product revenues of $15 million, compared to $11.5 million in Q1/21. Dawson James commented that the Q2/21 revenue totals beat its estimates of $14 million and added that the company's new dermatology products are highly complementary to its business and offer potential for further growth.

The analyst stated that "Fortress announced encouraging MB-107 and MB-207 clinical updates from its investigator-IND X-linked severe combined immunodeficiency (XSCID) trials." The company is partnering with Mustang Bio Inc. (NASDAQ: MBIO) to develop and evaluate the safety and efficacy of these candidates in its investigator-IND X-linked severe combined immunodeficiency (XSCID) clinical studies.

Analyst Kolbert explained that in January 2021, "the FDA removed a CMC hold on the MB-107 Phase 2 clinical trial Investigational New Drug application after reviewing a comprehensive CMC package." Kolbert noted that with the hold removed, Fortress now plans to enroll the first patient in this multicenter trial in Q3/21 and expects to receive the first top-line data in early 2022. In addition, Kolbert mentioned that Fortress expects to file an IND in H2/21 for a pivotal Phase 2 trial of MB-207.

The report listed that the company is also partnering with Mustang in a Phase 1/2 study of MB-106, which was described as "a CD20-targeted CAR T for relapsed or refractory B-cell non-Hodgkin lymphomas (B-NHL) and chronic lymphocytic leukemia (CLL)."

Another candidate in the Fortress pipeline is an anti-PD-L1 antibody called cosibelimab. The firm is partnering with Checkpoint Therapeutics (CKPT:OTC) and is evaluating the potential use for cosibelimab in treatment of metastatic cutaneous squamous cell carcinoma.

Other candidates in Fortress's drug pipeline include olafertinib, "a light chain fibril-reactive monoclonal antibody for AL Amyloidosis," CUTX-101, copper histidinate for Menkes disease, and dotinurad which is a urate transporter (URAT1) inhibitor for treating gout and perhaps other hyperuricemic indications including heart failure and chronic kidney disease.

Dawson James advised that it has a "Buy" rating for Fortress Biotech with a 12-month price target of $24.00. The company's shares trade on the NASDAQ Exchange under the symbol FBIO and opened for trading on August 18, 2021 at $3.06/share.

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Disclosures for Dawson James Securities, Fortress Biotech Inc., August 17, 2021

The Firm does not make a market in the securities of the subject company(s). The Firm has engaged in investment banking relationships with the subject company in the prior twelve months, as a manager or co-manager of a public offering and has received compensation resulting from those relationships. The Firm may seek compensation for investment banking services in the future from the subject company(s). The Firm has not received other compensation from the subject company(s) in the last 12 months for services unrelated to managing or co-managing of a public offering.

Neither the research analyst(s) whose name appears on this report nor any member of his (their) household is an officer, director or advisory board member of these companies. The Firm and/or its directors and employees may own securities of the company(s) in this report and may increase or decrease holdings in the future. As of July 31, 2021, the Firm as a whole did not beneficially own 1% or more of any class of common equity securities of the subject company(s) of this report. The Firm, its officers, directors, analysts or employees may affect transactions in and have long or short positions in the securities (or options or warrants related to those securities) of the company(s) subject to this report. The Firm may affect transactions as principal or agent in those securities.

Analysts receive no direct compensation in connection with the Firm's investment banking business. All Firm employees, including the analyst(s) responsible for preparing this report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of the Firm and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

Analyst Certification: The analyst(s) whose name appears on this research report certifies that 1) all of the views expressed in this report accurately reflect his (their) personal views about any and all of the subject securities or issuers discussed; and 2) no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this research report; and 3) all Dawson James employees, including the analyst(s) responsible for preparing this research report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of Dawson James and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.




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