Biofrontera Q2 Revenue Rises 15%, Company Restructures Amidst Patent Extension and Clinical Trials

Biofrontera Inc. reported a 15% increase in total revenues for Q2 2025, reaching $9.0 million, driven by higher unit sales price and sales volume of Ameluz. The company also announced a major restructuring of its relationship with Biofrontera AG, acquiring U.S. intellectual property and new drug applications, supported by an $11 million funding boost. Despite a net loss of $5.3 million due to non-cash fluctuations in warrant fair value, Biofrontera remains optimistic about its strategic initiatives.

Biofrontera Inc. (NASDAQ: BFRI) reported a 15% increase in total revenues for the second quarter of 2025, reaching $9.0 million. This growth was driven by a 5% increase in the unit sales price and a 9.5% increase in the sales volume of Ameluz, the company's flagship product. The company also announced a major restructuring of its relationship with Biofrontera AG, acquiring U.S. intellectual property and new drug applications, supported by an $11 million funding boost [1].

The restructuring includes a shift to a royalty model, where Biofrontera will pay a 12% royalty on Ameluz sales below $65 million and a 15% royalty above that threshold. This change is expected to significantly decrease the company's cost of sales and delay payment timings. Additionally, the company completed enrollment in a Phase III trial for Ameluz in actinic keratosis (AK) on the trunk, neck, and extremities, and finalized a Phase III plus one-year follow-up for superficial basal cell carcinoma, two major label expansion efforts [1].

Despite a net loss of $5.3 million due to non-cash fluctuations in warrant fair value, Biofrontera remains optimistic about its strategic initiatives. The company expects to submit the results of the AK trial to the FDA in the fourth quarter of 2025, which could lead to label expansion and allow doctors to treat AK on the entire body. The FDA submission for superficial basal cell carcinoma is planned for the second half of 2025 [1].

Looking ahead, Biofrontera expects the royalty model to enhance its financial resilience and position it for sustainable gross margin improvement. The company also expects selling, general, and administrative expenses to normalize as legal expenses related to patent litigation decline in the second half of the year [1].

References:
[1] https://www.nasdaq.com/articles/biofrontera-q2-revenue-jumps-15
[2] https://seekingalpha.com/news/4485568-biofrontera-signals-enhanced-operating-leverage-as-u-s-independence-and-new-patent-reshape