Fortress Biotech Plunges Amid Fraud Probe and Drug Setback

Fortress Biotech faces a severe crisis as a law firm initiates a securities fraud investigation, compounding the devastation from a recent FDA rejection for its key drug candidate, CUTX-101. The one-two punch triggered a catastrophic sell-off, with shares collapsing more than 30% in a single day.

Investors witnessed a dramatic erosion of value as Fortress Biotech’s stock went into freefall. The sell-off commenced with a 31% plunge in pre-market trading, accelerating to a 33.7% loss during the regular session. The decline has persisted in subsequent days, with the equity currently trading at $2.815. This collapse has wiped out a substantial portion of the company’s market capitalization, representing a stunning reversal for a firm that previously benefited from Priority Review designation.

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