Journey Medical reported third-quarter revenue of $19 million and a narrower net loss as sales of its rosacea treatment EMROSI grew and the company expanded insurance coverage for the drug.
The company said EMROSI generated $9 million in net sales during the quarter, supported by higher prescription volume, improved payer reimbursement and a growing number of prescribers. Chief Executive Officer Claude Maraoui said Journey achieved positive EBITDA for a second consecutive quarter as it works toward sustained profitability and positive cash flow.
Chief Financial Officer Joseph Benesch said total revenue rose from $15 million a year earlier. He described the increase as 8%, although the stated revenue figures imply a larger percentage increase.
EMROSI prescriptions and coverage expand
Maraoui said EMROSI prescriptions totaled approximately 40,000 in the third quarter, up from about 36,000 in the second quarter. The number of unique prescribers increased by approximately 500 during the period to more than 5,000, reaching the company’s internal goal for the year.
Refills rose nearly 12% from the second quarter, Maraoui said. Journey also increased its sales force from 35 to about 40 representatives and is considering a further increase in 2027.
On insurance coverage, Maraoui said 40% of commercial lives currently have what the company considers high-quality access to EMROSI, defined as coverage requiring no more than a single step edit. A large national health plan added the drug to its formulary in early August, he said.
Chief Operating Officer and General Counsel Ramsey Alloush said Journey expects another national plan to add EMROSI at the beginning of 2027. Maraoui said the plan covers more than 25 million lives. The company expects the addition to shift more prescriptions from its copay bridging program to covered prescriptions, supporting revenue and average selling price.
Alloush cautioned that annual deductible resets could delay some of the financial benefit in the first quarter. He said the company expects average selling price to trend upward as 2027 progresses.
Copay change caused prescription volatility
During the question-and-answer session, Maraoui said a change in the copay bridging program from $35 to $50 contributed to prescription volatility in late September and October. The program is designed to help patients whose insurance plans do not yet cover EMROSI.
Maraoui said prescriptions were recovering and that past program changes had produced temporary downturns lasting about four to eight weeks. He said the higher copay was intended to improve profitability as more patients gain insurance coverage for the drug.
Journey is considering formal 2027 guidance, but Maraoui said the company would likely be cautious about providing it in the first half of the year while it assesses the effects of new formulary coverage and patient mix.
Loss narrows as margin improves
Journey reported a third-quarter GAAP net loss of $1.3 million, or 5 cents per share, compared with a loss of $3.9 million, or 14 cents per share, a year earlier. Adjusted EBITDA was $3.5 million, up from $1.4 million.
Gross margin improved to 69% from 67%, which Benesch attributed mainly to EMROSI’s lower cost impact on cost of sales. Selling, general and administrative expenses rose to $12.6 million from $12.1 million, including a $1.7 million expense related to a former vendor dispute. Benesch said the settlement was a one-time cash payment and the dispute was fully resolved.
The company ended the quarter with $22.3 million in cash, down from $24.1 million at the end of 2025. Benesch said he expects selling, general and administrative expenses to remain consistent or decline slightly as a percentage of revenue, even as Journey continues to invest in EMROSI.
Journey also continues to explore licensing its patented products outside the United States and bringing in additional dermatology assets, Maraoui said.
About Fortress Biotech (NASDAQ:FBIO)
Fortress Biotech, Inc. (NASDAQ: FBIO) is a biopharmaceutical company that develops and commercializes prescription medicines through a network of subsidiary companies and strategic partnerships. Its research and development activities have focused on areas including dermatology, immunology, oncology, rare diseases and other conditions with significant unmet medical needs. The company’s portfolio has included dermatology products such as ZILXI, a topical minocycline foam for the treatment of inflammatory lesions associated with rosacea, and Qbrexza, a topical treatment for primary axillary hyperhidrosis.
