Biofrontera Remains a Buy According to Benchmark Co. Analyst Bruce Jackson

Benchmark Co. analyst Bruce Jackson maintained a Buy rating and a $3.00 price target for Biofrontera (BFRI) shares, which closed at $0.97. The analyst has a 30.86% success rate and an average return of -19.4%. The stock has a Moderate Buy consensus rating with an average price target of $4.67. BFRI has a market cap of $10.31M and a P/E ratio of -0.44.

Biofrontera Inc. (NASDAQ: BFRI) reported its fiscal second quarter results for the period ended June 30, 2025, with total revenues rising to $9 million from $7.8 million a year earlier, representing a 15% year-over-year increase [1]. The company highlighted transformative progress toward operational independence, margin expansion, and late-stage clinical advances that could expand its addressable market.

Margin expansion accelerates as Biofrontera shifts to royalty model

The cost of revenues (GAAP) declined by 42% year-over-year in the fiscal second quarter, driven by a structural shift from a 25%-35% transfer price to a 12% royalty as part of the restructuring with Biofrontera AG. This change, effective for the 2025 fiscal year to date, materially improves unit economics as Ameluz volume reaches all-time highs and provides a buffer against potential tariff impacts as manufacturing transitions in-house [1].

Commercial execution drives record Ameluz sales and device placement

Ameluz unit sales volume increased by 9.5% in fiscal 2025 over the prior year, surpassing 50,000 tubes sold in the first half, supported by new sales strategies such as revised hiring criteria and enhanced data analytics. Lamp placements, a key leading indicator, reached an all-time high installed base of more than 700 units as of the fiscal second quarter, including 40 XL RhodoLED lamps placed in 2025 and initial entries into new physician offices nationwide [1].

Pipeline advances aim to expand addressable U.S. dermatology market

The company completed enrollment in a Phase III trial for Ameluz in actinic keratosis (AK) on the trunk, neck, and extremities during the reporting period, and finalized Phase III plus one-year follow-up for superficial basal cell carcinoma, two major label expansion efforts. Ameluz also received patent extension coverage through December 2043, and the Centers for Medicare and Medicaid Services (CMS) now lists reimbursement for up to three tubes per treatment, effective July 1, 2025, enabling broader usage [1].

Looking Ahead

Management indicated that top-line clinical data readouts for both actinic keratosis (trunk, neck, extremities) and moderate-to-severe acne vulgaris are expected in the fourth quarter of 2025. The FDA submission for superficial basal cell carcinoma is planned for the second half of 2025, with patent protection for Ameluz newly extended through December 2043. No further price increases are planned for Ameluz in fiscal 2025, and selling, general, and administrative expenses are expected to normalize as legal expenses related to patent litigation decline in the second half of the year [1].

Analysts' Views

Benchmark Co. analyst Bruce Jackson maintained a Buy rating and a $3.00 price target for Biofrontera (BFRI) shares, which closed at $0.97. The stock has a Moderate Buy consensus rating with an average price target of $4.67 [2].

References:
[1] https://www.nasdaq.com/articles/biofrontera-q2-revenue-jumps-15
[2] https://www.tipranks.com/stocks/bfri/stock-analysis