Biofrontera shares fall 11.21% intraday after Xepi license divestiture raises concerns over contingent revenue and financial stability.

Biofrontera Inc. fell 11.21% intraday following the announcement of a $10 million divestiture of its Xepi® antibiotic cream license to Pelthos Therapeutics. While the transaction provides immediate $3 million in proceeds and potential future milestone payments, investors appeared skeptical about the strategic shift, interpreting the sale as a sign of reduced focus on its core photodynamic therapy (PDT) platform. Despite management emphasizing strengthened liquidity and funding for Ameluz® expansion, the company’s broader financial risks—highlighted in disclosures about contingent payments, regulatory uncertainties, and a distressed balance sheet—likely amplified concerns. The market reaction suggests doubts about the sustainability of the cash influx and Biofrontera’s ability to achieve profitability, overshadowing short-term gains from the deal.