Full Press Release Details
Inc. Reports Record Fiscal Year 2024 Financial Results and Provides a Business Update
scheduled for Friday, March 21, 2025 at 10:00 a.m. Eastern time
Mass., March 21, 2025 / Biofrontera Inc. (NASDAQ:BFRI) (the "Company"), a biopharmaceutical company specializing in
the commercialization of dermatological products, today reported financial results for the three and twelve months ended December
from 2024 and subsequent weeks include:
| Reported record total revenues of $37.3 million for 2024, reflecting a 9.5% increase from $34.1 million in 2023 with Q4 2024 growing 18.5% over Q4 2023. The growth was primarily driven by increases in Ameluz sales volume and unit price, and the successful launch of our RhodoLED XL Lamp. | ||
| Total SG&A costs for 2024 were $33.8M versus $39.1M in 2023. Total operating expenses for the year were $54.5 million compared with $56.7 million for 2023 or a decrease of about 3.9 %. | ||
| Cash and cash equivalents were $5.9 million as of December 31, 2024, compared with $1.3 million on December 31, 2023. | ||
| Agreements between the Company and its former parent Biofrontera AG were restructured resulting in the transfer price of Ameluz being reduced from 50% to 25% for all purchases through 2025. | ||
| Placed 52 RhodoLED XL lamps in the fourth quarter and 100 since the launch in June 2024 through December 31, 2024. Additionally, we placed 72 Rhodo-LED lamps during 2024. | ||
| Obtained FDA approval to use up to three tubes of Ameluz per treatment. | ||
| Achieved highly statistically significant results in Phase 3 Study of Ameluz -Photodynamic Therapy (PDT) for the treatment of Superficial Basal Cell Carcinoma. | ||
| Created Biofrontera Discovery GmbH (a wholly-owned subsidiary of Biofrontera Inc.) and successfully transferred all clinical trial activities with Ameluz in the USA to this new entity as of June 1, 2024. | ||
| Accelerated patient recruitment in the Phase 3 study for the treatment of mild to moderate actinic keratosis on the trunk and extremities as well as the Phase 2 study for moderate to severe acne. |
Luebbert, Chief Executive Officer and Chairman of Biofrontera Inc., stated, "2024 was a very exciting year for us and lays the
groundwork for continued growth and expansion. We have refocused our strategy for 2025 to support current customers in improving their
efficiency in delivering PDT services, as well as making it easier for those who want to start offering this valuable treatment option
to their patients. We have also updated our customer segmentation to assist with sales force productivity and are continuing to invest
in training and development. We maintained strong relationships with current clients and demonstrated success targeting new dermatology
offices and facilities throughout the entire U.S. We are encouraged by the sales of the RhodoLED XL lamp which is a considerable
advance over previous FDA-approved Photodynamic Therapy devices. It has proven to be simple to maneuver and capable of accommodating
various patient treatment positions in order to optimize ease of use. The user-friendly touch screen operation, modern technology, and
Biofrontera's excellent customer support have also contributed to making this device very popular with our customers."
further added "Lastly, we have increased efforts in our clinical development program which has led to the achievement of several
key milestones over the last nine months. The launch of a larger lamp and the FDA approval for treatment with up to 3 tubes of Ameluz
will become particularly valuable when the label is expanded to include not only face and scalp but also the trunk and extremities. We
have accelerated our efforts in this regard and have very recently recruited the final patient in our Phase 3 trial and are close to
concluding patient recruitment in our phase 2 acne study, all of which positions Ameluz strongly for the future."
Quarter Financial Results
revenues for the fourth quarter of 2024 were $12.6 million, an increase of $2.0 million, or 18.5%, compared with $10.6 million for the
fourth quarter of 2023. This growth reflects the continued adoption of Ameluz and RhodoLED XL lamps and
a price increase in Q4 of 2024.
operating expenses were $14.3 million for the fourth quarter of 2024 compared with $14.5 million for the fourth quarter of 2023. Cost
of revenues was $5.3 million for the fourth quarter of 2024 compared with $5.4 million for the prior-year quarter reflecting the lower
transfer pricing. Selling, general and administrative expenses were $8.2 million for the fourth quarter of 2024 compared with $9.1 million
for the fourth quarter of 2023.
income (loss) for the fourth quarter of 2024 was $(1.4) million, or $(0.19) per share, vs. net income of $3.5 million, or $1.65 per share,
for the prior-year quarter, with all per-share figures on a split-adjusted basis. This change was driven by the gain on legal settlement
EBITDA for the fourth quarter of 2024 was negative $1.4 million compared with negative $3.2 million for the fourth quarter of 2023. Adjusted
EBITDA, a non-GAAP financial measure, is defined as net income or loss excluding interest income and expense, income taxes, depreciation
and amortization, and certain other non-recurring or non-cash items. We look at this customary metric to better assess and understand
the performance of the business. Please refer to the table below for a reconciliation of GAAP to non-GAAP financial measures.
Year Financial Results
revenues for 2024 were $37.3 million compared with $34.1 million for 2023, an increase of approximately 9.5%, primarily driven by a higher
volume and average selling price of Ameluz and the placement of RhodoLED XL lamps.
operating expenses were $54.5 million for 2024 compared with $56.7 million for 2023. Cost of revenues increased to $18.6 million for
2024 from $17.4 million in 2023 driven by increased sales, offset by a lower transfer price that impacted the cost of goods sold in the
fourth quarter of 2024.
general and administrative expenses for 2024 decreased $5.3 million, or 13.5% compared to 2023. This was primarily driven by a
$3.0 million reduction in general and administrative expenses, primarily attributable to a decrease in external legal expenses and expenses
relating to financing activities. The decrease was further driven by more strategic investment in promotional and sales spend and a resulting
saving in general sales and marketing expenses of $1.8 million.
income (loss) for 2024 was $(17.8) million, or $(3.22) per diluted share, compared with a net loss of $(20.1) million, or $(13.02) per
EBITDA was negative $15.3 million for 2024 compared with negative $19.5 million for 2023. The increase was primarily driven by an increase
in gross profit due to the increase in sales and a reduction in purchase price for sales of inventory purchased under the Second A&R
Ameluz LSA, and a decrease in selling, general and administrative expenses due to a reduction in financing related activities and legal
expenses. Again, please refer to the table below for a reconciliation of GAAP to non-GAAP financial measures.
Conference Call Details
call: Friday, March 21, 2024 at 10:00 AM ET
Toll Free: 1-877-877-1275 (U.S. toll-free)
International: 1-412-858-5202
Webcast: Fourth Quarter and FY 2024 Financial Results and Business Update Conference Call
Inc. is a U.S.-based biopharmaceutical company specializing in the development and treatment of dermatological conditions with a focus
on PDT. The Company commercializes the drug-device combination Ameluz with the RhodoLED lamp series for PDT of AK, pre-cancerous
skin lesions which may progress to invasive skin cancers. The Company performs clinical trials to extend the use of the products to treat
non-melanoma skin cancers and moderate to severe acne. For more information, visit www.biofrontera-us.com and follow Biofrontera
statements in this press release may constitute "forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995, as amended to date. These include, but are not limited to, statements relating to our ability
to achieve and sustain profitability; our ability to compete effectively in selling our licensed products; our ability to expand, manage
and maintain our direct sales and marketing organizations, including our ability to obtain the financing to develop our marketing strategy,
if needed; changes in our relationship with our Licensors; our Licensors' ability to manufacture our licensed products; our Licensors'
ability to adequately protect their intellectual property and operate their business without infringing upon the intellectual property
rights of others; our actual financial results may vary significantly from forecasts and from period to period; our estimates regarding
anticipated operating losses, future revenues, capital requirements and our needs for additional financing; market risks regarding consolidation
and group purchasing organizations ("GPO") in the healthcare industry; the willingness of healthcare providers to purchase
our licensed products if coverage, reimbursement and pricing from third-party payors for our products, or procedures using our products
significantly declines; our ability to market, commercialize, achieve market acceptance for and sell our licensed products; the fact
that product quality issues or product defects may harm our business; any product liability claims; our ability to maintain compliance
with The Nasdaq Stock Market, LLC ("Nasdaq") continued listing standards; our ability to comply with the requirements of
being a public company; the progress, timing and completion of research, development and preclinical studies and clinical trials for
our licensed products; our Licensors' ability to obtain and maintain the regulatory approvals necessary for the marketing of our
licensed products in the United States, and; those risks listed in the sections of this Form 10-K entitled "Risk Factors"
and elsewhere in this Form 10-K.
have based these forward-looking statements on our current expectations and projections about future events; nevertheless, actual results
or events could differ materially from the plans, intentions and expectations disclosed in, or implied by, the forward-looking statements
we make. These risks and uncertainties, many of which are beyond our control, include, but are not limited to, the impact of any extraordinary
external events; any changes in the Company's relationship with its licensors; the ability of the Company's licensors to
fulfill their obligations to the Company in a timely manner; the Company's ability to achieve and sustain profitability; whether
global disruptions in supply chains will impact the Company's ability to obtain and distribute its licensed products; changes in
the practices of healthcare providers, including any changes to the coverage, reimbursement and pricing for procedures using the Company's
licensed products; the uncertainties inherent in the initiation and conduct of clinical trials; availability and timing of data from
clinical trials; whether results of earlier clinical trials or trials of Ameluz in combination with BF-RhodoLED in different
disease indications or product applications will be indicative of the results of ongoing or future trials; uncertainties associated with
regulatory review of clinical trials and applications for marketing approvals; whether the market opportunity for Ameluz in combination
with BF-RhodoLED is consistent with the Company's expectations; the Company's ability to comply with public company
requirements; the Company's ability to regain compliance with Nasdaq continued listing standards, the Company's ability to
retain and hire key personnel; the sufficiency of cash resources and need for additional financing and other factors that may be disclosed
in the Company's filings with the Securities and Exchange Commission ("SEC"), which can be obtained on the SEC website
at www.sec.gov. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date
on which they are made and reflect management's current estimates, projections, expectations and beliefs. The Company does not
plan to update any such forward-looking statements and expressly disclaims any duty to update the information contained in this press
release except as required by law.
thousands, except par value and share amounts)
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,905 | $ | 1,343 | ||||
| Investment, related party | 7 | 78 | ||||||
| Accounts receivable, net | 5,315 | 5,162 | ||||||
| Inventories, net | 6,646 | 10,908 | ||||||
| Prepaid expenses and other current assets | 527 | 425 | ||||||
| Asset held for sale | 2,300 | - | ||||||
| Other assets, related party | - | 5,159 | ||||||
| Total current assets | 20,700 | 23,075 | ||||||
| Property and equipment, net | 80 | 134 | ||||||
| Operating lease right-of-use assets | 903 | 1,612 | ||||||
| Intangible assets, net | 35 | 2,629 | ||||||
| Other assets | 383 | 482 | ||||||
| Total assets | $ | 22,101 | $ | 27,932 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 1,856 | 3,308 | ||||||
| Accounts payable, related parties, net | 5,344 | 5,698 | ||||||
| Operating lease liabilities | 548 | 691 | ||||||
| Accrued expenses and other current liabilities | 4,273 | 4,487 | ||||||
| Short term debt | - | 3,904 | ||||||
| Total current liabilities | 12,021 | 18,088 | ||||||
| Long-term liabilities: | ||||||||
| Convertible notes payable | 4,098 | - | ||||||
| Warrant liabilities | 1,250 | 4,210 | ||||||
| Operating lease liabilities, non-current | 276 | 804 | ||||||
| Other liabilities | 23 | 37 | ||||||
| Total liabilities | 17,668 | 23,139 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred Stock, $0.001 par value, 20,000,000 shares authorized, no Series B-1, 3,366 Series B-2 and 6,763 Series B-3 shares issued and outstanding as of December 31, 2024 and no shares issued and outstanding as of December 31, 2023 | - | - | ||||||
| Common Stock, $0.001 par value, 35,000,000 shares authorized; 8,873,932 and 1,517,628 shares issued and outstanding as of December 31, 2024 and 2023 | 9 | 2 | ||||||
| Additional paid-in capital | 121,833 | 104,441 | ||||||
| Accumulated deficit | (117,409 | ) | (99,650 | ) | ||||
| Total stockholders' equity | 4,433 | 4,793 | ||||||
| Total liabilities and stockholders' equity | $ | 22,101 | $ | 27,932 |
STATEMENTS OF OPERATIONS
thousands, except per share amounts and number of shares)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Product revenues, net | $ | 12,560 | $ | 10,582 | $ | 37,303 | $ | 34,005 | ||||||||
| Revenues, related party | - | 13 | 18 | 66 | ||||||||||||
| Total revenues, net | 12,560 | 10,595 | 37,321 | 34,071 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Cost of revenues, related party | 5,016 | 4,975 | 17,855 | 16,789 | ||||||||||||
| Cost of revenues, other | 256 | 394 | 752 | 655 | ||||||||||||
| Selling, general and administrative | 8,192 | 9,101 | 33,793 | 38,975 | ||||||||||||
| Selling, general and administrative, related party | 12 | (41 | ) | 42 | 152 | |||||||||||
| Research and development | 796 | 33 | 2,089 | 77 | ||||||||||||
| Change in fair value of contingent consideration | - | - | - | 100 | ||||||||||||
| Total operating expenses | 14,272 | 14,462 | 54,531 | 56,748 | ||||||||||||
| Loss from operations | (1,712 | ) | (3,867 | ) | (17,210 | ) | (22,677 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Change in fair value of warrant liabilities | 351 | 4,455 | 1,680 | 6,456 | ||||||||||||
| Warrant inducement expense | - | (1,045 | ) | - | (1,045 | ) | ||||||||||
| Excess of warrant fair value over offering proceeds | - | (2,272 | ) | - | (2,272 | ) | ||||||||||
| Change in fair value of investment, related party | (1 | ) | (786 | ) | (14 | ) | (7,421 | ) | ||||||||
| Gain on legal settlement | 7,385 | - | 7,385 | |||||||||||||
| Loss on debt extinguishment | - | - | (316 | ) | - | |||||||||||
| Interest expense, net | (40 | ) | (211 | ) | (2,035 | ) | (468 | ) | ||||||||
| Other income (expense), net | 4 | (140 | ) | 158 | (75 | ) | ||||||||||
| Total other income (expense) | 314 | 7,386 | (527 | ) | 2,560 | |||||||||||
| Income (loss) before income taxes | (1,398 | ) | 3,519 | (17,737 | ) | (20,117 | ) | |||||||||
| Income tax expense | (2 | ) | (6 | ) | 22 | 14 | ||||||||||
| Net income (loss) | $ | (1,396 | ) | $ | 3,525 | $ | (17,759 | ) | $ | (20,131 | ) | |||||
| Income (loss) per common share: | ||||||||||||||||
| Basic and diluted | $ | (0.19 | ) | $ | 1.65 | $ | (3.22 | ) | $ | (13.02 | ) | |||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 7,519,210 | 2,140,400 | 5,516,334 | 1,546,297 |
STATEMENTS OF CASH FLOWS