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

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BFRI

Biofrontera

(NASDAQ:BFRI)

Rating:50Neutral
Price Target:
$1.00
▲(19.05% Upside)
Biofrontera's overall score is driven by its financial struggles and weak valuation, despite positive earnings call sentiment and strategic corporate events. The stock's technical indicators suggest bearish momentum, further impacting the score.
Positive Factors
Financial Performance
Biofrontera Inc. reported better than expected 2Q revenue and gross margins.
Product Development
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.
Restructuring
The restructuring allows Biofrontera Inc. to acquire all U.S. assets related to Ameluz and take responsibility for U.S. manufacturing, as well as regulatory, quality management, and pharmacovigilance.
Negative Factors
Revenue
Revenue of $8.6 million lagged the $10.6 million estimate and $10.6 million consensus.
Stock Target Price
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: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
Negative
Last Price0.84
Price Trends
50DMA
0.89
Negative
100DMA
0.79
Positive
200DMA
0.89
Negative
Market Momentum
MACD
-0.02
Positive
RSI
42.28
Neutral
STOCH
30.59
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 0.84 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.89, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 30.59 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
65
Neutral
$13.88M3.29%-26.17%
51
Neutral
$7.95B-0.40-41.62%2.21%22.29%-1.85%
50
Neutral
$9.01M-531.54%11.20%63.16%
46
Neutral
$5.46M-52.05%-29.64%73.63%
$227.41M-58.27%
46
Neutral
$19.61M-52.69%
44
Neutral
$6.17M-25.65%19.22%98.73%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BFRI
Biofrontera
0.84
-0.28
-25.00%
CPHI
China Pharma Holdings
1.68
-0.12
-6.67%
AYTU
Aytu BioScience
2.25
-0.18
-7.41%
SISI
Shineco
5.05
-509.39
-99.02%
COSM
Cosmos Holdings
0.65
-0.45
-40.91%
SBFM
Sunshine Biopharma
1.36
-1.51
-52.61%

Biofrontera Corporate Events

Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
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.

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.

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.

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.

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.

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.

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: Aug 28, 2025