U.S. stocks edge higher; solid earnings season continues
On Monday, Benchmark analyst Bruce Jackson revised the price target for Biofrontera (NASDAQ:BFRI) shares to $2.75, a significant reduction from the previous target of $7.00. Despite the cut in the price target, the analyst reiterated a Buy rating on the stock. The adjustment follows Biofrontera’s first-quarter revenue report, which showed earnings of $8.6 million, falling short of Benchmark’s $10.6 million projection as well as the consensus estimate. According to InvestingPro data, the stock is currently trading at $0.68, near its 52-week low of $0.62, while maintaining a healthy gross profit margin of 53.26%.
Biofrontera’s management is confident that the customer relationship management (CRM) system and backend support they have established will contribute to consistent improvements in results throughout 2025. The company anticipates that the fourth quarter will be pivotal for this year’s revenue growth, with new labeling expected to boost sales of Ameluz, their flagship product. This new labeling will allow an increase in the maximum dosage from one to three tubes per treatment. InvestingPro analysis shows the company achieved 14.28% revenue growth in the last twelve months, though it faces challenges with cash burn and profitability. Get access to 10+ additional ProTips and comprehensive financial analysis with InvestingPro.
The company also has potential growth on the horizon with new indications for Ameluz in the treatment of superficial Basal Cell Carcinoma (sBCC) and Actinic Keratoses (AK) on the extremities, planned for market introduction in 2026 and 2027, respectively. These developments could further accelerate revenue growth. With a current market capitalization of just $5.77 million and analysts forecasting continued growth, detailed valuation metrics and growth projections are available in the Pro Research Report on InvestingPro.
In October 2024, Biofrontera achieved a milestone by announcing promising preliminary results from a Phase 3 study of Ameluz in treating sBCC. The results were highly statistically significant for all primary and secondary endpoints. The company is preparing to file a supplemental New Drug Application (sNDA) for sBCC treatment in the third quarter of 2025, with approval expected by mid-2026.
Benchmark’s revised price target of $2.75 per share is based on the potential for Biofrontera’s stock to align with the average of 3x 2026 revenue projections for comparable companies, down from the previous estimate of $7 per share.
In other recent news, Biofrontera Inc. reported a 9% increase in total revenues for the first quarter of 2025, reaching $8.6 million. Despite this revenue growth, the company posted a net loss of $4.2 million, an improvement from the previous year’s $10.4 million loss. Biofrontera’s financial report also highlighted cash and cash equivalents of $1.8 million, down from $5.9 million at the end of 2024. The company has been granted a new patent for its Ameluz formulation, providing protection until 2043. Additionally, Biofrontera is focusing on expanding the treatment indications for Ameluz, with plans to submit new data to the FDA later this year. The company aims to secure approvals for the treatment of superficial basal cell carcinoma and moderate to severe acne. Biofrontera has also been working on optimizing its sales force and ensuring smooth reimbursement processes for its products. These developments are part of Biofrontera’s strategy to achieve breakeven through cost management and revenue growth.
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