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Biofrontera, Inc. (BFRI)
:BFRI
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Biofrontera (BFRI) AI Stock Analysis

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BFRI

Biofrontera

(NASDAQ:BFRI)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
$1.00
▲(4.17% Upside)
Biofrontera's overall score is primarily influenced by its financial performance challenges, including profitability and cash flow issues. Technical analysis shows some positive momentum, but valuation concerns persist due to negative earnings. The earnings call provided a positive outlook with strategic improvements, though financial risks remain significant.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand for Biofrontera's products, enhancing its market position and supporting long-term financial stability.
Strategic Independence
Achieving strategic independence reduces costs and enhances operational flexibility, allowing Biofrontera to better control its financial and strategic direction.
Patent Extension
The patent extension secures long-term revenue streams and strengthens Biofrontera's competitive advantage in the dermatological market.
Negative Factors
Profitability Challenges
Ongoing profitability challenges can hinder Biofrontera's ability to reinvest in growth and innovation, potentially affecting its competitive position.
High SG&A Expenses
Rising SG&A expenses, driven by legal costs, can strain financial resources and reduce operational efficiency, impacting long-term profitability.
Cash Flow Challenges
Negative cash flow highlights the company's reliance on external funding, which can limit financial flexibility and increase risk during economic downturns.

Biofrontera (BFRI) vs. SPDR S&P 500 ETF (SPY)

Biofrontera Business Overview & Revenue Model

Company DescriptionBiofrontera Inc., a biopharmaceutical company, engages in the commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company offers Ameluz, which is a prescription drug approved for use in combination with the company's licensor's medical device; and the RhodoLED lamp series for photodynamic therapy for the lesion-directed and field-directed treatment of actinic keratosis of mild-to-moderate severity on the face and scalp. It also Xepi, a prescription cream for the treatment of impetigo. The company was incorporated in 2015 and is headquartered in Woburn, Massachusetts.
How the Company Makes MoneyBiofrontera Inc. generates revenue through the sales of its dermatological products, primarily Ameluz, in various markets. The company earns money by selling Ameluz to dermatologists, clinics, and hospitals, where it is used for treating actinic keratoses through photodynamic therapy. Biofrontera also sells or leases its BF-RhodoLED lamps, which are used in conjunction with Ameluz to perform the therapy. The company's revenue is further supported by partnerships and distribution agreements, which help expand its market reach. Biofrontera may also engage in licensing agreements or co-development partnerships that contribute to its financial growth.

Biofrontera Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 30, 2025
Earnings Call Sentiment Positive
Biofrontera's earnings call reflects a successful first half of 2025 marked by record sales, strategic independence, and strong financial backing, despite increased net losses and legal costs. The overall sentiment is buoyed by positive operational changes and future growth prospects.
Q2-2025 Updates
Positive Updates
Record-Breaking Sales of Ameluz
For the first time, Biofrontera sold over 50,000 tubes of Ameluz in the first half of 2025, showcasing a successful strategic shift and customer segmentation.
Increased Lamp Installations
40 RhodoLED XL lamps were placed in physician offices during the first half of 2025, signaling strong future growth with over 700 lamps now in use.
Total Revenue Growth
Total revenues for the second quarter of 2025 were $9.0 million, a 15.4% increase from $7.8 million in the second quarter of 2024.
Improved Gross Margins
Cost of revenues decreased by 42% compared to the same period in 2024, due to a shift to a royalty model and improved operational efficiencies.
Successful Restructuring with Biofrontera AG
Biofrontera Inc. became independent from Biofrontera AG, with a new agreement reducing the Ameluz transfer price and improving financial terms.
Strong Financial Support
Biofrontera secured an $11 million investment to support restructuring efforts and future growth.
Pipeline Progress
Completed enrollment in the Phase III study for actinic keratosis on the trunk, neck, and extremities, and Phase III trial for superficial basal cell carcinoma, with a promising outlook for FDA submissions.
Patent Extension
Received patent approval extending Ameluz's protection through December 2043, supporting long-term investment recovery and profitability.
Negative Updates
Increased Net Loss
The net loss for the second quarter of 2025 was $5.3 million, compared to a net loss of $0.3 million in the prior year, due to noncash fluctuations in the fair value of warrants.
Higher SG&A Expenses
Selling, general, and administrative expenses increased to $10.5 million in Q2 2025 from $7.9 million in Q2 2024, driven by a $3.4 million increase in legal costs.
Legal Expenses Impact
There was a significant spike in legal expenses due to patent claim defenses, impacting SG&A costs and creating volatility in financial results.
Company Guidance
In the recent Biofrontera Inc. Second Quarter 2025 Financial Results and Business Update Conference Call, the company reported a record-breaking performance for the first half of the year, driven by strategic changes in customer segmentation and sales approach. They sold over 50,000 tubes of Ameluz in the first half of the year and placed 40 RhodoLED XL lamps in physician offices, contributing to growth prospects. The restructuring of their relationship with Biofrontera AG led to a new royalty model, reducing costs significantly. Total revenues for Q2 2025 increased to $9.0 million, up from $7.8 million in Q2 2024, driven by a 5% higher unit sale price and a 9.5% increase in sales volume. Despite a net loss of $5.3 million for the quarter, the company achieved an adjusted EBITDA of negative $5.1 million, reflecting improved cost management. Future growth is expected from expanding indications for Ameluz, including the potential treatment of acne vulgaris and superficial basal cell carcinoma. The company also highlighted a strategic $11 million investment that facilitated their operational transformation.

Biofrontera Financial Statement Overview

Summary
Biofrontera shows revenue growth but struggles with profitability and cash flow, evidenced by negative net income and operating cash flows. High leverage and dependence on financing pose risks to financial stability.
Income Statement
45
Neutral
Biofrontera's revenue grew by 9.49% from 2023 to 2024, indicating a positive growth trend. However, the company remains unprofitable with consistently negative net income and EBIT margins, reflecting ongoing operational challenges.
Balance Sheet
38
Negative
The company's high debt-to-equity ratio, driven by substantial liabilities, raises concerns about financial stability. Despite a positive equity ratio, the negative return on equity highlights profitability issues.
Cash Flow
42
Neutral
While operating cash flow improved in 2024, it remains negative, indicating ongoing cash flow challenges. The substantial financing cash flow suggests reliance on external funding to sustain operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue39.18M37.30M34.07M28.67M24.10M18.85M
Gross Profit24.16M18.70M16.63M13.49M11.36M9.78M
EBITDA-15.41M-14.44M-18.45M934.00K-36.76M-7.49M
Net Income-16.59M-17.76M-20.13M-640.00K-37.71M-10.99M
Balance Sheet
Total Assets20.14M22.10M27.93M50.88M53.22M24.14M
Cash, Cash Equivalents and Short-Term Investments7.24M5.91M1.42M27.76M24.55M8.08M
Total Debt5.00M4.92M5.40M1.35M0.000.00
Total Liabilities24.81M17.67M23.14M27.00M41.88M18.31M
Stockholders Equity-4.67M4.43M4.79M23.88M11.34M5.83M
Cash Flow
Free Cash Flow-9.34M-10.28M-24.90M-16.24M-26.73M-12.37M
Operating Cash Flow-9.39M-10.27M-24.89M-16.20M-26.71M-12.37M
Investing Cash Flow-5.00K-3.00K619.00K-5.16M-11.00K0.00
Financing Cash Flow12.25M14.84M8.41M14.02M43.19M13.19M

Biofrontera Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.96
Price Trends
50DMA
0.93
Positive
100DMA
0.81
Positive
200DMA
0.89
Positive
Market Momentum
MACD
0.02
Negative
RSI
58.21
Neutral
STOCH
54.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFRI, the sentiment is Positive. The current price of 0.96 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.93, and above the 200-day MA of 0.89, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFRI.

Biofrontera Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
33.49M-1.09-65.96%
52
Neutral
$10.24M-531.54%11.20%63.16%
50
Neutral
17.25M-0.62-71.51%-18.05%33.87%
46
Neutral
6.11M-1.24-61.13%-29.64%73.63%
46
Neutral
6.65M-0.56-24.55%19.22%98.73%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BFRI
Biofrontera
0.96
-0.37
-27.82%
CPHI
China Pharma Holdings
1.87
-0.49
-20.76%
AYTU
Aytu BioScience
1.74
-0.61
-25.96%
SISI
Shineco
6.20
-289.48
-97.90%
COSM
Cosmos Holdings
1.08
0.20
22.73%
SBFM
Sunshine Biopharma
1.46
-1.72
-54.09%

Biofrontera Corporate Events

Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Biofrontera Appoints New Chief Commercial Officer
Positive
Aug 11, 2025

On August 11, 2025, Biofrontera Inc. announced the appointment of George Jones as Chief Commercial Officer, effective August 25, 2025. Jones, with over 25 years of experience in the pharmaceutical and biotech sectors, will oversee the company’s commercial functions. This appointment comes as Biofrontera strengthens its management following the acquisition of all rights and assets related to Ameluz® and RhodoLED® for the U.S. market from Biofrontera AG. The acquisition is expected to bring the company closer to cash break-even by reducing royalty payments. Jones’ extensive experience in commercial leadership is anticipated to accelerate Biofrontera’s growth and enhance its market access strategies.

The most recent analyst rating on (BFRI) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Biofrontera Finalizes Acquisition of U.S. Ameluz Rights
Positive
Jul 1, 2025

On June 30, 2025, Biofrontera Inc. finalized an agreement with Biofrontera AG to acquire all U.S. rights to Ameluz® and RhodoLED®. This strategic transaction involves a royalty payment structure and grants Biofrontera AG a 10% equity stake in Biofrontera Inc. through Series D Convertible Preferred Stock. Additionally, a private placement of Series C Preferred Stock was initiated on June 27, 2025, to fund the acquisition, with proceeds expected to reach $11 million. This move is expected to enhance Biofrontera Inc.’s market presence in the U.S. and streamline its operations by consolidating rights to its key products.

The most recent analyst rating on (BFRI) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 23, 2025