Biofrontera's Q1 2025 Earnings Call: Unpacking Contradictions in Sales Strategy, Gross Margins, and Inventory Management

Sales force and cost structure adjustments, impact of transfer pricing change on gross margins, sales of original and XL lamps, transfer pricing and inventory burn, and transfer pricing and inventory impact are the key contradictions discussed in Biofrontera's latest 2025Q1 earnings call.



Revenue Growth and Financial Performance:
- Biofrontera Inc. reported total revenues of $8.6 million for the first quarter of 2025, marking a 9% increase from the same period of the prior year.
- This growth was driven by a $0.5 million increase in Ameluz sales due to an increased unit price, and the launch of the RhodoLED XL lamp, which contributed $0.2 million to sales.

Cost Control and Efficiency:
- The company's total operating expenses decreased to $13.1 million in the first quarter of 2025, down from $13.4 million in the same period of the previous year.
- The reduction in expenses was due to decreased cost of revenues related to the Ameluz license and supply agreements, reduced headcount expenses, and savings from reduced marketing activities.

Product Innovations and Label Expansions:
- Biofrontera received a patent on the new formulation of Ameluz, which lacks the potential allergen propylene glycol, and is approved by the FDA.
- This patent extends protection until December 2043, safeguarding the company from generic competition.

Clinical Trial Milestones:
- The company completed enrollment in the Phase III clinical trial evaluating Ameluz for the treatment of mild to moderate actinic keratoses on the extremities, neck, and trunk.
- This milestone aims to expand the label of Ameluz, which currently is restricted to treatments on the face and scalp.