Biofrontera (BFRI)
NASDAQ:BFRI
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Biofrontera (BFRI) AI Stock Analysis

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BFRI

Biofrontera

(NASDAQ:BFRI)

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Neutral 50 (OpenAI - 4o)
Rating:50Neutral
Price Target:
$1.00
▲(3.09% Upside)
Biofrontera's overall score is primarily impacted by its financial performance challenges, including profitability and cash flow issues. Technical analysis provides some support, but valuation remains a significant concern due to ongoing losses. The earnings call offers a positive outlook with strategic improvements and growth potential, partially offsetting financial weaknesses.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and successful sales strategies, enhancing long-term financial stability.
Patent Extension
The patent extension secures long-term market exclusivity for Ameluz, supporting sustained revenue and investment recovery.
Strategic Restructuring
The restructuring improves financial terms and operational independence, allowing for better cost management and strategic focus.
Negative Factors
Profitability Challenges
Ongoing unprofitability and negative net income highlight operational inefficiencies, posing risks to long-term financial health.
High Leverage
High debt levels can strain cash flow and limit financial flexibility, impacting the company's ability to invest in growth opportunities.
Increased Legal Costs
Rising legal expenses add to operational costs, reducing profitability and potentially diverting resources from growth initiatives.

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

Biofrontera Business Overview & Revenue Model

Company DescriptionBiofrontera AG is a biopharmaceutical company focused on the development and commercialization of innovative products for the treatment of skin diseases, particularly skin cancer and other dermatological conditions. The company operates primarily in the dermatology sector, with a strong emphasis on photodynamic therapy and topical treatments. Biofrontera's core products include Ameluz, a prescription medication for the treatment of actinic keratosis, and the BF-RhodoLED, a light source used in conjunction with Ameluz for effective therapy.
How the Company Makes MoneyBiofrontera generates revenue primarily through the sale of its pharmaceutical products, particularly Ameluz, which is marketed in various regions including Europe and the United States. The company operates a direct sales model in certain markets while also leveraging partnerships with distributors to reach a broader audience. Key revenue streams include product sales, royalties from licensing agreements, and potential milestone payments from collaborations with other pharmaceutical companies. The company may also benefit from strategic partnerships that enhance its market presence and expand its product offerings, thus contributing to its overall earnings.

Biofrontera Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Apr 03, 2026
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 Revenue37.16M37.30M34.07M28.67M24.10M18.85M
Gross Profit25.09M18.70M16.63M13.49M11.36M9.78M
EBITDA-16.23M-14.44M-18.45M934.00K-36.76M-7.49M
Net Income-17.57M-17.76M-20.13M-640.00K-37.71M-10.99M
Balance Sheet
Total Assets15.41M22.10M27.93M50.88M53.22M24.14M
Cash, Cash Equivalents and Short-Term Investments3.42M5.91M1.42M27.76M24.55M8.08M
Total Debt4.91M4.92M5.40M1.35M0.000.00
Total Liabilities18.00M17.67M23.14M27.00M41.88M18.31M
Stockholders Equity-2.58M4.43M4.79M23.88M11.34M5.83M
Cash Flow
Free Cash Flow-12.01M-10.28M-24.90M-16.24M-26.73M-12.37M
Operating Cash Flow-12.00M-10.27M-24.89M-16.20M-26.71M-12.37M
Investing Cash Flow-4.00K-3.00K619.00K-5.16M-11.00K0.00
Financing Cash Flow12.55M14.84M8.41M14.02M43.19M13.19M

Biofrontera Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.97
Price Trends
50DMA
0.98
Negative
100DMA
0.93
Positive
200DMA
0.88
Positive
Market Momentum
MACD
0.02
Positive
RSI
43.68
Neutral
STOCH
19.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFRI, the sentiment is Neutral. The current price of 0.97 is below the 20-day moving average (MA) of 1.05, below the 50-day MA of 0.98, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
$10.99M-0.47-531.54%11.20%63.16%
47
Neutral
$13.54M-29.32-1.98%156.93%92.75%
45
Neutral
$12.12M-0.19
41
Neutral
$20.93M-0.68-52.69%
38
Underperform
$3.60M
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BFRI
Biofrontera
0.97
0.27
38.57%
PRPH
Prophase Labs
0.27
-0.48
-64.00%
TXMD
TherapeuticsMD
1.68
0.22
15.07%
RDHL
RedHill Biopharma
1.07
-5.92
-84.69%
COSM
Cosmos Holdings
0.73
0.08
12.31%
GELS
Gelteq Limited
1.06
-0.56
-34.57%

Biofrontera Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
Biofrontera Regains Nasdaq Compliance in November 2025
Positive
Nov 10, 2025

Biofrontera Inc. has announced that it has regained compliance with Nasdaq’s continued listing requirements under Listing Rules 5550(b)(1) and 5550(a)(2) as of November 4 and November 6, 2025, respectively. This compliance follows previous notifications of non-compliance due to the company’s stockholders’ equity and stock price falling below required thresholds earlier in 2025, impacting its market positioning and potentially averting delisting threats.

The most recent analyst rating on (BFRI) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Business Operations and StrategyM&A TransactionsProduct-Related Announcements
Biofrontera Completes Sale of Xepi US License
Positive
Nov 7, 2025

On November 6, 2025, Biofrontera Inc. completed the sale of its US license for Xepi® (ozenoxacin) Cream to Pelthos Therapeutics Inc. for up to $10 million. The transaction, which includes an initial $3 million payment and potential milestone payments, aims to strengthen Biofrontera’s cash position and support the growth of its photodynamic therapy platform, particularly the expansion of Ameluz® into additional indications. This strategic move is expected to fund the company to profitability and allows Biofrontera to focus on its core PDT franchise.

The most recent analyst rating on (BFRI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Business Operations and StrategyM&A Transactions
Biofrontera Finalizes U.S. Rights Acquisition Deal
Positive
Oct 24, 2025

On October 20, 2025, Biofrontera Inc. finalized agreements with its former parent company, Biofrontera AG, to acquire all U.S. rights to Ameluz® and RhodoLED®. This strategic transaction involves a new earnout model replacing the previous transfer pricing model, which could impact the company’s revenue structure and market positioning in the U.S.

The most recent analyst rating on (BFRI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Business Operations and StrategyM&A Transactions
Biofrontera Completes Restructuring and Asset Purchase
Positive
Oct 23, 2025

On October 23, 2025, Biofrontera Inc. announced the completion of its restructuring and asset purchase agreement with Biofrontera AG, acquiring all U.S. rights to Ameluz® and RhodoLED®, backed by an $11 million investment. This transaction, which includes a reduced earnout structure, is expected to enhance Biofrontera’s financial and operational profile by lowering costs and accelerating the company’s path to profitability. The deal also aligns long-term interests with Biofrontera AG through a 10% equity stake, and positions Biofrontera Inc. to expand Ameluz® growth and explore additional indications.

The most recent analyst rating on (BFRI) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Delistings and Listing ChangesShareholder MeetingsStock Split
Biofrontera Approves Key Proposals at Special Meeting
Neutral
Sep 19, 2025

On September 16, 2025, Biofrontera Inc. held a Special Meeting of Stockholders where several key proposals were approved. These included an amendment to the company’s certificate of incorporation to potentially conduct a reverse stock split to comply with Nasdaq listing requirements, and the issuance of common stock related to Series C and D Preferred Stock conversions. These decisions are aimed at strengthening Biofrontera’s market position and ensuring compliance with stock exchange regulations.

The most recent analyst rating on (BFRI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Biofrontera stock, see the BFRI Stock Forecast page.

Biofrontera, Inc. Reports Record Sales Amid Strategic Growth
Sep 1, 2025

Biofrontera, Inc.’s recent earnings call paints a picture of a company experiencing a successful first half of 2025, characterized by record sales, strategic independence, and robust financial backing. Despite facing increased net losses and legal costs, the overall sentiment remains positive, buoyed by operational changes and promising growth prospects.

Biofrontera Inc. Reports Revenue Growth Amid Strategic Restructuring
Aug 15, 2025

Biofrontera Inc. is a biopharmaceutical company focused on the development and commercialization of photodynamic therapy for dermatological conditions, primarily in the U.S. market.

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: Nov 13, 2025