Biofrontera Inc. Reports Second Quarter 2025 Financial Results and Provides a Business Update

Globe and Mail

12 hours ago

Woburn, MA, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Biofrontera Inc. (NASDAQ:BFRI) (the "Company"), a biopharmaceutical company specializing in the development and commercialization of photodynamic therapy in dermatology, today reported financial results for the three and six months ended June 30, 2025 and provided a business update.
Highlights from the first six months of 2025 included the following:
Total revenues for the second quarter of 2025 were $9.0 million, a 15% increase from the same period of the prior year
For the first six months of 2025, revenue was $17.7 million, a 12% increase from the comparable period in 2024
Cash and cash equivalents were $7.2 million as of June 30, 2025, compared with $5.9 million at December 31, 2024
Agreed to major restructuring of relationship with Biofrontera AG, including acquisition of United States Intellectual Property (IP) and New Drug Applications (NDA) and control of manufacturing, supported by an addition $11 million in funding for the company
US patent on revised formulation of Ameluz® granted, extending patent protection through to December 2043
Announced last patient completing 1 year follow-up in superficial basal cell carcinoma (sBCC) Phase 3 study
Completed patient enrollment in Phase 3 study with Ameluz® for mild to moderate actinic keratosis (AK) on the entire body and in Phase 2b study for the treatment of moderate to severe acne vulgaris
Hermann Luebbert, Chief Executive Officer and Chairman of the Company, stated, "We have changed our approach to our business in 2025 by transforming our customer segmentation, focusing our strategy and using extended data analysis to support our sales team effectiveness. This led to two very gratifying quarters for us driven by customer growth and disciplined execution resulting in increased sales volume and higher revenues. In addition to Ameluz® treating pre-cancerous skin lesions on the face and scalp, we are very encouraged about the potential for Ameluz® to be used more broadly to treat AK on the entire body, and the potential label extension to basal cell carcinoma and acne vulgaris.'
'In addition, we recently announced a fundamental change in our agreement with Biofrontera AG which includes acquiring all the rights, approvals and patents to Ameluz® and RhodoLED® in the United States. This has been a long process that began June 1, 2024 when we assumed control of all clinical studies relating to Ameluz® in the United States, a move that has given us direct oversight of trial efficiency and more effective cost management. We are now in the process of transferring the US IP, NDA, and manufacturing capabilities for Ameluz® and the RhodoLED® lamps. We will pay a monthly Ameluz® royalty of 12% in years where Ameluz® revenue in the US is less than $65 million, and 15% in years when revenue exceeds that threshold. The royalty replaces the former transfer pricing model — which required payment of 25% to 35% of the net sales price per tube depending on timing and indication. This will give us further savings on our cost of goods above those already generated by the earlier renegotiation of the transfer pricing model.'
Prof. Luebbert concluded by saying 'The $11 million investment we secured, the fundamental restructuring in our agreement with Biofrontera AG and the improvements we have made this year in our promotional strategy and sales effectiveness have led to significant increases in volume and revenue in the first half of 2025 and have positioned us strongly for the rest of the year and beyond'.
Second Quarter Financial Results
Total revenues for the second quarter of 2025 were $9.0 million compared with $7.8 million for the second quarter of 2024. This increase was driven by both a 5% higher unit sales price and a 9.5% increase in sales volume of Ameluz® in the second quarter of 2025. The higher sales volume of Ameluz® was due to improvements in direct sales team effectiveness.
Total operating expenses were $14.1 million for the second quarter of 2025 compared with $12.9 million for the second quarter of 2024. Cost of revenues decreased by $1.7 million, or 41.8% as compared to the three months ended June 30, 2024. This was primarily due to the reduced Ameluz® cost agreed upon with Biofrontera AG in relation to taking over clinical trial costs.
Selling, general and administrative expenses were $10.5 million for the second quarter of 2025 compared with $7.9 million for the second quarter of 2024. The increase was primarily driven by a $3.4 million increase in legal costs, partially offset by $0.5 million in personnel savings within both the direct sales team and general and administrative staff and a $0.3 million decrease in miscellaneous general and administrative expenses.
The net loss for the second quarter of 2025 was $5.3 million, compared with a net loss of $0.3 million for the prior-year quarter. The increase in the net loss is attributed to the $5.4 million non-cash fluctuation in the change in fair value of warrants of in 2024.
Adjusted EBITDA for the second quarter of 2025 was negative $5.1 million compared with negative $4.7 million for the second quarter of 2024, driven by higher legal costs offset by lower cost of goods sold. We look at Adjusted EBITDA, a non-GAAP financial measure, as a better indication of ongoing operations and this measurement is defined as net income or loss excluding interest income and expense, income taxes, depreciation and amortization, and certain other non-recurring or non-cash items.
Please refer to the table below which presents a GAAP to non- GAAP reconciliation of Adjusted EBITDA for the second quarters of 2025 and 2024.
Six Month Financial Results
Total revenues were $17.6 million for the first half of 2025 compared with $15.8 million for the first half of 2024. This 12% increase was driven by a higher unit sales price contributing $0.6 million and increased sales volume of Ameluz ® contributing $1.0 million, as well as a $0.3 million increase in sales of the RhodoLED ® Lamps. The higher sales volume of Ameluz ® was due to improvements in direct sales team effectiveness.
Total operating expenses were $27.2 million for the first half of 2025 compared with $26.3 million for the first half of 2024. Increased legal expense was offset by reduced operational cost. Cost of revenues decreased from the prior year to $5.5 million for the first six months of 2025 compared to $8.0 million for the first half of 2024 due to the reduced transfer price agreed upon with Biofrontera AG in February 2024 in relation to taking over clinical development costs.
Selling, general and administrative expenses increased to $19.2 million compared to $17.2 million in the prior year. The increase was primarily attributable to a $4.4 million increase in legal expenses. The increased legal expenses were partially offset by savings in personnel expenses of $0.9 million due to headcount fluctuations in our direct sales and administrative teams, as well as a decrease of $0.5 million in expenses relating to sales support functions and a decrease of $0.4 million in issuance costs.
Adjusted EBITDA was negative $9.5 million for the first half of 2024 compared with negative $9.3 million for the first half of 2024.
Conference Call Details
Conference call: Thursday, August 14, 2025 at 10:00 AM ET
Toll Free: 1-877-877-1275 (U.S. toll-free) International: 1-412-858-5202
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=eaQgqzXL
About Biofrontera Inc.
Biofrontera Inc. is a U.S.-based biopharmaceutical company commercializing a portfolio of pharmaceutical products for the treatment of dermatological conditions with a focus on photodynamic therapy (PDT) and topical antibiotics. The Company's licensed products are used for the treatment of actinic keratoses, which are pre-cancerous skin lesions.. For more information, visit www.biofrontera-us.com and follow Biofrontera on LinkedIn and Twitter.
Contacts Investor Relations
Andrew Barwicki
1-516-662-9461
[e-mail]
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the Company's revenue guidance, business and marketing strategy, revenue growth, sales force productivity, growth strategy, liquidity and cash flow, potential to expand the label of Ameluz®, available market opportunities for Ameluz®, ongoing clinical trials, and other statements that are not historical facts. The words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential", "target", "goal", "assume", "would", "could" or similar words are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We have based these forward-looking statements on our current expectations and projections about future events; nevertheless, actual results or events could differ materially from the plans, intentions and expectations disclosed in, or implied by, the forward-looking statements we make. These risks and uncertainties, many of which are beyond our control, include, but are not limited to, our reliance on sales of products we currently license from other companies as our sole source of revenue; the success of our competitors in developing generic topical dermatological products that successfully compete with our licensed products; the success of our principal licensed product, Ameluz®; the ability of the Company's licensors to establish and maintain relationships with contract manufacturers that are able to supply the Company with enough of our products to meet our demand; the ability of our licensors or their manufacturing partners to supply the licensed products that we market in sufficient quantities and at acceptable quality and cost levels, and to fully comply with current good manufacturing practice or other applicable manufacturing regulations; the ability of our licensors to successfully defend or enforce patents related to our licensed products; the availability of insurance coverage and medical expense reimbursement for our licensed products; the impact of legislative and regulatory changes; competition from other pharmaceutical and medical device companies and existing treatments, such as simple curettage and cryotherapy; the Company's ability to achieve and sustain profitability; the Company's ability to obtain additional financing as needed to implement its growth strategy; the Company's ability to retain and hire key personnel; and other factors that may be disclosed in the Company's filings with the Securities and Exchange Commission ("SEC"), which can be obtained on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management's current estimates, projections, expectations and beliefs. The Company does not undertake to update any such forward-looking statements and expressly disclaims any duty to update the information contained in this press release, except as required by law.
(Tables follow)
June 30,
2025 December 31,
2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 7,239 $ 5,905
Investment, related party 9 7
Accounts receivable, net 3,955 5,315
Inventories, net 4,028 6,646
Prepaid expenses and other current assets 331 527
Asset held for sale 2,300 2,300
Other assets, related party 953 -
Total current assets 18,815 20,700
Property and equipment, net 37 80
Operating lease right-of-use assets 729 903
Intangible assets, net 26 35
Other assets 535 383
Total assets $ 20,142 $ 22,101
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 4,268 1,856
Accounts payable, related parties, net 670 5,344
Operating lease liabilities 443 548
Advance from Stockholders 8,500 -
Accrued expenses and other current liabilities 5,806 4,273
Total current liabilities 19,687 12,021
Long-term liabilities:
Convertible notes payable, net 4,338 4,098
Warrant liabilities 548 1,250
Operating lease liabilities, non-current 223 276
Other liabilities 14 23
Total liabilities 24,810 17,668
Commitments and contingencies
Stockholders' (deficit) equity:
Preferred Stock $0.001 par value; 20,000,000 shares authorized; no Series B-1 issued; 2,641 and 3,366 Series B-2; 6,593 and 6,763 Series B-3 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively - -
Common Stock $0.001 par value; 70,000,000 shares authorized; 10,138,567 and 8,873,932 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 9 9
Additional paid-in capital 122,259 121,833
Accumulated deficit (126,936) (117,409)
Total stockholders' (deficit) equity (4,668) 4,433
Total liabilities and stockholders' equity $ 20,142 $ 22,101
BIOFRONTERA INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts and number of shares)
(Unaudited)
Three Months Ended
June 30, Six Months Ended
June 30,
2025 2024 2025 2024
Product revenues, net $ 9,030 $ 7,831 $ 17,617 $ 15,732
Revenues, related party - 8 - 18
Total revenues, net 9,030 7,839 17,617 15,750
Operating expenses
Cost of revenues, related party 2,380 4,092 5,455 8,038
Cost of revenues, other 262 250 455 421
Selling, general and administrative 10,528 7,915 19,183 17,163
Selling, general and administrative, related party 69 32 76 29
Research and development 870 621 2,077 637
Total operating expenses 14,109 12,910 27,246 26,288
Loss from operations (5,079) (5,071) (9,629) (10,538)
Other income (expense)
Change in fair value of warrants 153 5,438 702 2,009
Change in fair value of investment, related party 2 (14) 2 (11)
Loss on debt extinguishment - - - (316)
Interest expense, net (115) (596) (220) (2,003)
Other income, net (264) 6 (363) 186
Total other income (expense) (224) 4,834 121 (135)
Loss before income taxes (5,303) (237) (9,508) (10,673)
Income tax expense 21 20 19 21
Net loss $ (5,324) $ (257) $ (9,527) $ (10,694)
Loss per common share:
Basic and diluted $ (0.57) $ (0.05) $ (1.05) $ (2.45)
Weighted-average common shares outstanding:
Basic and diluted 9,351,557 5,091,353 9,108,091 4,357,474
BIOFRONTERA INC.
GAAP TO NON-GAAP ADJUSTED EBITDA RECONCILIATION
(In thousands, except per share amounts and number of shares)
(Unaudited)
Three Months Ended
June 30, Six Months Ended
June 30,
2025 2024 2025 2024
Net loss $ (5,324) $ (257) $ (9,527) $ (10,694)
Interest expense, net 115 596 220 2,003
Income tax expenses 21 20 19 21
Depreciation and amortization 22 130 46 258
EBITDA (5,166) 489 (9,242) (8,412)
Loss on debt extinguishment - - - 316
Change in fair value of warrant liabilities (153) (5,438) (702) (2,009)
Change in fair value of investment, related party (2) 14 (2) 11
Stock based compensation 187 204 426 432
Expensed issuance costs - - - 354
Adjusted EBITDA $ (5,135) $ (4,731) $ (9,520) $ (9,308)
Adjusted EBITDA margin -56.9 % -60.3 % -54.0 % -59.1 %