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

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Biofrontera

(NASDAQ:BFRI)

Rating:49Neutral
Price Target:
$1.00
▲(19.05%Upside)
Biofrontera's overall score reflects a company with potential growth but facing substantial financial and regulatory challenges. While there are positive signs in revenue growth and strategic acquisitions, profitability issues, cash flow constraints, and Nasdaq compliance risks overshadow these prospects.
Positive Factors
Clinical Trial Success
Biofrontera reached an important milestone by announcing preliminary results from a Phase 3 study of Ameluz that were highly statistically significant for all primary and secondary endpoints.
Product Development
New indications for the treatment of superficial Basal Cell Carcinoma and Actinic Keratoses are expected to reach the market, which could lead to further acceleration in revenue growth.
Regulatory Approval
The approval of the increased dosage from one to three tubes of Ameluz in one treatment session is expected to help expand the market and drive significant sales growth as doctors can treat more surface area for mild to moderate actinic keratosis.
Negative Factors
Financial Performance
Revenue of $8.6 million lagged the $10.6 million estimate and $10.6 million consensus.
Stock Price Valuation
If the company can execute the stock should trade closer to the comp group average of 3x 2026 revenue, or $2.75 a share, down from the previous price target of $7 a share.

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

Biofrontera Business Overview & Revenue Model

Company DescriptionBiofrontera Inc. (BFRI) is a biopharmaceutical company that focuses on the commercialization of dermatological products. The company operates primarily in the healthcare sector, providing innovative solutions for the treatment of skin diseases, including photodynamic therapy for actinic keratoses and other skin conditions. Biofrontera is known for its flagship product, Ameluz, which is used in combination with the company's own medical device, the BF-RhodoLED lamp, to deliver effective photodynamic therapy treatments.
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:May 15, 2025
(Q1-2025)
|
% Change Since: 20.00%|
Next Earnings Date:Sep 30, 2025
Earnings Call Sentiment Neutral
The earnings call indicates positive business development with a focus on revenue growth, patent protection, and cost management. However, financial challenges such as a net loss and decreased cash reserves present concerns.
Q1-2025 Updates
Positive Updates
Revenue Growth
Total revenues for the first quarter of 2025 were $8.6 million, a 9% increase from the same period of the prior year.
Patent Protection
Biofrontera received a patent for the new formulation of Ameluz, extending protection from generic competition until December 2043.
Clinical Trial Progress
Enrollment of the final patient in Phase III clinical trial for Ameluz for the treatment of actinic keratoses on the extremities, neck, and trunk.
Cost Management
Total operating expenses were reduced to $13.1 million from $13.4 million in the same quarter of the previous year.
Improved EBITDA
Adjusted EBITDA improved from $4.6 million to $4.4 million year-over-year.
Negative Updates
Net Loss
Net loss for the first quarter of 2025 was $4.2 million, which is an improvement over the $10.4 million loss in the prior year but still a notable financial challenge.
Cash and Cash Equivalents
Cash and cash equivalents decreased to $1.8 million as of March 31, 2025, from $5.9 million as of December 31, 2024.
Increased R&D Expenses
Research and development expenses increased by $1.2 million compared to the same period last year due to assumption of clinical trial activities.
Company Guidance
During the Biofrontera's first quarter 2025 call, the company reported total revenues of $8.6 million, marking a 9% increase compared to the previous year. The cost of revenues decreased by 22.1% to $3.1 million, attributed to a revised cost structure under the Ameluz license agreement. Operating expenses also dropped slightly to $13.1 million from $13.4 million in the prior year. Notably, the company reduced selling, general, and administrative expenses by 6.5%. Despite increased R&D expenses due to taking over clinical trial activities, the net loss was significantly reduced to $4.2 million from $10.4 million the previous year, translating to a decrease in loss per share from $2.88 to $0.47. Adjusted EBITDA improved, reflecting a rise in gross profit by $1.5 million. The company also achieved several strategic milestones, including a new patent for Ameluz, advancing clinical trials, and expanding product indications. Biofrontera ended the quarter with $1.8 million in cash and equivalents and $6.5 million in inventory.

Biofrontera Financial Statement Overview

Summary
Biofrontera shows revenue growth but faces significant challenges in profitability and cash flow. High leverage and dependency on external 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue37.30M34.07M28.67M24.10M18.85M
Gross Profit18.70M16.63M13.49M11.36M9.78M
EBITDA-14.44M-18.45M934.00K-36.76M-7.49M
Net Income-17.76M-20.13M-640.00K-37.71M-10.99M
Balance Sheet
Total Assets22.10M27.93M50.88M53.22M24.14M
Cash, Cash Equivalents and Short-Term Investments5.91M1.42M27.76M24.55M8.08M
Total Debt4.92M5.40M1.35M0.000.00
Total Liabilities17.67M23.14M27.00M41.88M18.31M
Stockholders Equity4.43M4.79M23.88M11.34M5.83M
Cash Flow
Free Cash Flow-10.28M-24.90M-16.24M-26.73M-12.37M
Operating Cash Flow-10.27M-24.89M-16.20M-26.71M-12.37M
Investing Cash Flow-3.00K619.00K-5.16M-11.00K0.00
Financing Cash Flow14.84M8.41M14.02M43.19M13.19M

Biofrontera Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.84
Price Trends
50DMA
0.68
Positive
100DMA
0.77
Positive
200DMA
0.89
Negative
Market Momentum
MACD
0.05
Negative
RSI
66.76
Neutral
STOCH
72.84
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 0.84 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.68, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.84 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$13.39M3.29%-26.17%
52
Neutral
$7.39B>-0.01-63.86%2.36%16.15%0.36%
49
Neutral
$7.75M-384.98%14.27%87.31%
46
Neutral
$13.16M-58.30%
46
Neutral
$6.87M-21.17%35.51%95.44%
40
Neutral
$5.55M-59.14%-33.10%71.37%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BFRI
Biofrontera
0.85
-0.16
-15.84%
CPHI
China Pharma Holdings
1.81
-0.72
-28.46%
AYTU
Aytu BioScience
2.32
-0.47
-16.85%
COSM
Cosmos Holdings
0.46
-0.78
-62.90%
SBFM
Sunshine Biopharma
1.60
-4.28
-72.79%

Biofrontera Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
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.

Private Placements and FinancingBusiness Operations and Strategy
Biofrontera Restructures U.S. Rights with $11M Investment
Positive
Jun 30, 2025

On June 30, 2025, Biofrontera Inc. announced a significant restructuring of its relationship with Biofrontera AG, acquiring all U.S. rights to Ameluz® and RhodoLED® backed by an $11 million investment led by existing investors. This agreement reduces the royalty rate on Ameluz® sales, aiming to drive the company towards profitability and strengthen its presence in the U.S. dermatology market. The restructuring allows Biofrontera Inc. to assume full control over manufacturing, regulatory, and commercial responsibilities in the U.S., aligning long-term interests with Biofrontera AG through a 10% equity stake. The move is expected to enhance operational agility and support the company’s growth strategy, including an upcoming FDA submission for treating superficial basal cell carcinoma.

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.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Biofrontera Holds Annual Stockholders Meeting, Key Decisions Made
Positive
Jun 18, 2025

On June 12, 2025, Biofrontera Inc. held its Annual Meeting of Stockholders, where key decisions were made to shape the company’s future. Stockholders elected Heikki Lanckriet as a Class I director, approved an increase in authorized common stock shares, agreed to adjourn the meeting if necessary for further proxy solicitation, and ratified the appointment of CBIZ CPAs P.C. as the independent accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to enhance Biofrontera’s operational capabilities and strategic positioning in the biotechnology sector.

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.

M&A TransactionsBusiness Operations and Strategy
Biofrontera Inc. Negotiates Cooperation Changes with Biofrontera AG
Neutral
Jun 11, 2025

On June 11, 2025, Biofrontera Inc. announced that it is in negotiations with Biofrontera AG regarding potential changes to their cooperation, including a possible combination of the two companies or adjustments to their license and supply agreement. These negotiations could lead to the transfer of certain rights and obligations from Biofrontera AG to Biofrontera Inc., as well as a reduction in the transfer price for Biofrontera Inc.’s licensed products sold in the U.S. The terms of any agreement are yet to be finalized and are subject to numerous conditions.

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.

Shareholder MeetingsRegulatory Filings and Compliance
Biofrontera Updates Proxy Statement for 2025 Meeting
Neutral
Jun 3, 2025

On June 3, 2025, Biofrontera Inc. filed a supplement to its Proxy Statement to update stockholders on voting procedures for their 2025 Annual Meeting. The supplement clarifies that Proposals 2 and 3 are considered routine matters under NYSE rules, allowing brokers to vote on them without instructions from shareholders, contrary to previous disclosures. Stockholders are urged to review these changes and vote accordingly.

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
Biofrontera Receives Nasdaq Non-Compliance Notice
Negative
May 23, 2025

On May 21, 2025, Biofrontera Inc. received a notice from Nasdaq indicating non-compliance with the equity listing requirement, as their stockholders’ equity was reported at $469,000, below the required $2,500,000. The company has 45 days to submit a compliance plan to Nasdaq, and if accepted, they may have up to 180 days to meet the requirements, with the possibility of appealing if the plan is rejected.

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
Biofrontera Faces Nasdaq Non-Compliance Notice
Negative
May 14, 2025

On May 8, 2025, Biofrontera Inc. received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, as its stock had closed below $1.00 per share for 33 consecutive business days. The company has until November 5, 2025, to regain compliance by ensuring its stock price meets the minimum requirement for 10 consecutive business days. Biofrontera is actively monitoring its stock price and considering options to address the deficiency, although there is no guarantee of compliance.

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: Jul 10, 2025