Biofrontera acquires full US rights to Ameluz and RhodoLED from former parent

WOBURN, Mass. - Biofrontera Inc. (NASDAQ:BFRI), a specialty pharmaceutical company with a current market capitalization of $10.8 million and annual revenue of $39.2 million, has acquired all U.S. rights to its photodynamic therapy products Ameluz and RhodoLED from former parent company Biofrontera AG, according to a press release issued Thursday.

The transaction includes the New Drug Application, manufacturing rights, intellectual property, and related personnel. Under the new agreement, Biofrontera will pay a reduced earnout of 12% on annual U.S. net sales up to $65 million and 15% on sales above that threshold until patent expiry.

This restructuring replaces the previous transfer-pricing model that required perpetual payments of 25%-35% of net sales per tube. The company expects the new arrangement to expand gross margins beginning in the fourth quarter of 2025.

"This is a transformative transaction that strengthens Biofrontera’s financial and operational profile," said Dr. Hermann Luebbert, Chief Executive Officer and Chairman of Biofrontera Inc.

The deal was funded through an $11 million investment led by existing investors Rosalind Advisors and AIGH Capital Management, with the final $2.5 million released upon closing. As part of the agreement, Biofrontera AG received a 10% post-money equity stake in Biofrontera Inc.

The company anticipates completing the full transfer of assets and personnel by late Q4 2025 or early Q1 2026. With this acquisition, Biofrontera assumes complete responsibility for manufacturing, regulatory compliance, quality management, and commercialization of its products in the U.S. market.

Biofrontera specializes in photodynamic therapy for dermatological conditions, primarily marketing Ameluz with the RhodoLED lamp series for treatment of Actinic Keratosis, pre-cancerous skin lesions.

In other recent news, Biofrontera Inc. reported a 15.4% increase in total revenues for the second quarter of 2025 compared to the same period last year, although the company experienced a net loss of $5.3 million. Additionally, Biofrontera completed its Phase 2b clinical trial for an acne treatment using Ameluz, which involved a photodynamic therapy approach with their BF-RhodoLED lamp. The trial’s final patient visit took place on August 22, 2025. In corporate governance matters, Biofrontera stockholders approved several proposals, including a potential reverse stock split and preferred share conversions, to ensure compliance with Nasdaq listing requirements. Benchmark has reiterated its Buy rating and maintained a $3.00 price target on Biofrontera stock, adjusting its model for potential tariff impacts. The company is addressing supply chain concerns by working to qualify a second contract manufacturer in Germany for its Ameluz product, currently sourced from Switzerland. These developments reflect Biofrontera’s ongoing efforts in both operational and financial strategies.

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