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WOBURN, Mass. - Biofrontera Inc. (NASDAQ:BFRI), a $5.78 million market cap biopharmaceutical company that generated $38 million in revenue over the last twelve months, confirmed Wednesday that it is in negotiations with Biofrontera AG regarding a potential business combination or adjustment to their existing license and supply agreement. According to InvestingPro data, the company faces significant challenges with rapid cash burn and negative earnings.
The U.S.-based biopharmaceutical company, which specializes in photodynamic therapy (PDT) treatments for dermatological conditions, said discussions could lead to the transfer of certain rights and obligations from Biofrontera AG to Biofrontera Inc., as well as a reduction in transfer prices for licensed products sold in the U.S. Despite maintaining a healthy gross profit margin of 53%, the company’s stock has declined nearly 49% over the past six months.
The disclosure follows an announcement made by Biofrontera AG’s Management Board on June 10.
No terms have been established yet, and any agreement would be subject to multiple conditions, including the negotiation and execution of definitive agreements between the companies, according to the statement.
Biofrontera Inc. currently commercializes Ameluz with the RhodoLED lamp series for the PDT treatment of actinic keratosis (AK), pre-cancerous skin lesions that may progress to invasive skin cancers. The company is also conducting clinical trials to expand the use of its products to treat non-melanoma skin cancers and moderate to severe acne. While analyst price targets range from $2.75 to $8.00, InvestingPro analysis suggests the stock is fairly valued at current levels. Get access to 8 additional key ProTips and comprehensive financial analysis with an InvestingPro subscription.
The announcement was made in a press release statement from the company, which provided no timeline for when negotiations might conclude.
In other recent news, Biofrontera Inc. reported its Q1 2025 earnings, showing a 9% increase in total revenues to $8.6 million. Despite this growth, the company’s earnings fell short of the consensus estimate, prompting Benchmark to revise its price target for Biofrontera shares to $2.75, down from $7.00, while maintaining a Buy rating. The company also announced the granting of a patent for a new formulation of Ameluz, which extends protection until 2043, as listed in the FDA’s Orange Book. This new formulation is designed to improve patient experience by eliminating the allergen propylene glycol. Biofrontera is focusing on expanding the use of Ameluz with new indications for treatment, including superficial Basal Cell Carcinoma and Actinic Keratoses on the extremities, expected to launch in 2026 and 2027, respectively. Additionally, the company filed a supplement to its Proxy Statement to clarify information for stockholders ahead of its annual meeting. Biofrontera’s management is optimistic about future growth, citing improvements in their customer relationship management system and backend support. The company anticipates that new labeling will help boost sales of Ameluz, with a pivotal fourth quarter expected for revenue growth.
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