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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 42 (OpenAI - 4o)
Rating:42Neutral
Price Target:
$0.78
▲(5.81% Upside)
Biofrontera's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis further indicates bearish momentum. Valuation metrics are weak due to negative earnings, while the earnings call provides a mixed outlook with both strategic positives and financial challenges.
Positive Factors
Strategic Expansion
Expanding Ameluz's indications can enhance market penetration and revenue, strengthening Biofrontera's competitive position in dermatology.
Transformational Agreement
Acquiring U.S. rights enhances control over product distribution and margins, potentially improving profitability and market presence.
Patent Approval
Patent protection until 2043 secures a long-term competitive advantage, safeguarding revenue streams from Ameluz against generic competition.
Negative Factors
Profitability Challenges
Ongoing unprofitability poses risks to financial health, limiting reinvestment capacity and necessitating external funding for operations.
High Leverage
High leverage increases financial risk, potentially impacting cash flow and limiting strategic flexibility in adverse market conditions.
Cash Flow Issues
Negative cash flow suggests reliance on external funding, which can be unsustainable and risky if market conditions worsen.

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:Nov 13, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Apr 03, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with stable year-to-date revenues, strategic expansions, successful patent approval, and financial agreements being positive aspects. However, these were countered by a decline in third-quarter revenues, increased legal costs, and a higher net loss.
Q3-2025 Updates
Positive Updates
Stable Year-to-Date Revenues
Biofrontera's year-to-date revenues until September 30, 2025, remained approximately flat compared to the same period in 2024, despite fewer buying opportunities and no price increase.
Strategic Expansion and Patent Approval
Biofrontera plans to submit a new FDA application for Ameluz to treat superficial basal cell carcinoma, and they received patent approval for a new formulation of Ameluz, extending protection through December 2043.
Transformational Agreement and Investment
Biofrontera completed a significant agreement with Biofrontera AG, acquiring all U.S. rights for Ameluz and RhodoLED, expected to enhance gross margins. They also secured an $11 million investment from institutional investors.
Xepi Divestment and Financial Position
Completed the sale of Xepi license, receiving $3 million at closing, with potential for an additional $7 million. This, along with other financing, is expected to support cash flow breakeven by fiscal year 2026.
Negative Updates
Decline in Q3 Revenues
Total revenues for the third quarter of 2025 were $7.0 million, a 22% decrease from $9.0 million in the third quarter of 2024, attributed to a lack of buying opportunities following a past price increase.
Increased Legal Costs
Selling, general, and administrative expenses increased due to higher legal costs related to patent claims, impacting the financial results of the quarter.
Increased Net Loss and Adjusted EBITDA
Net loss for Q3 2025 was $6.6 million, compared to $5.7 million in the prior year quarter. Adjusted EBITDA was negative $6.0 million, compared to negative $4.6 million in Q3 2024.
Company Guidance
During Biofrontera Inc.'s third-quarter 2025 financial results and business update conference call, CEO Hermann Luebbert provided guidance indicating a transient revenue dip due to a lack of buy-in opportunities following the previous year's price increase. The company anticipates strong revenue growth in the fourth quarter of 2025, driven by an expanded installed base of approximately 750 RhodoLED lamps and potential new indications for Ameluz. Financially, Biofrontera reported a 22% year-over-year decline in third-quarter revenues to $7.0 million, attributed to the 2024 price increase effect, while operating expenses decreased to $13.3 million. The net loss for the quarter was $6.6 million, with an adjusted EBITDA of negative $6.0 million. For the first nine months of 2025, total revenues were relatively flat at $24.6 million, with operating expenses at $40.5 million. The company recently completed a strategic agreement with Biofrontera AG, acquiring all U.S. rights for Ameluz and RhodoLED, expected to enhance gross margins and profitability. Additionally, the company has secured an $11 million investment and completed the Xepi license divestiture, positioning for cash flow breakeven in fiscal year 2026.

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 Profit24.52M18.70M16.63M13.49M11.36M9.78M
EBITDA-16.29M-14.44M-18.45M934.00K-36.76M-7.46M
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 Liabilities18.00M17.67M23.14M27.01M41.88M18.31M
Stockholders Equity-2.58M4.43M4.79M23.88M11.34M5.83M
Cash Flow
Free Cash Flow-12.01M-10.33M-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
Negative
Last Price0.74
Price Trends
50DMA
0.96
Negative
100DMA
0.94
Negative
200DMA
0.86
Negative
Market Momentum
MACD
-0.06
Positive
RSI
37.59
Neutral
STOCH
59.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFRI, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 0.88, below the 50-day MA of 0.96, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.59 is Neutral, neither overbought nor oversold. The STOCH value of 59.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
47
Neutral
$13.54M-29.320.27%75.19%
42
Neutral
$9.44M-1191.73%5.11%19.78%
41
Neutral
$6.51M
40
Underperform
$3.60M
38
Underperform
$20.93M-0.68-63.82%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BFRI
Biofrontera
0.79
-0.25
-24.04%
PRPH
Prophase Labs
0.14
-0.57
-80.28%
TXMD
TherapeuticsMD
1.59
0.27
20.45%
RDHL
RedHill Biopharma
1.17
-6.50
-84.75%
COSM
Cosmos Holdings
0.49
-0.28
-36.36%
GELS
Gelteq Limited
1.08
-1.32
-55.00%

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 30, 2025