Public disclosure of inside information according to article 17 MAR
Leverkusen (pta051/14.04.2025/22:55) - "Leverkusen, April, 14th Biofrontera AG (ISIN: DE000A4BGGM7), an international biopharmaceutical company, today published its consolidated results for the financial year ending December 31, 2024. At the same time, the company reports on current operational developments and sets the forecast for 2025.
Key financial figures 2024
| TEUR | 2024 | 2023 | |
| Sales revenue | 21,666 TEUR | 32,249 TEUR | |
| thereof Europe | 12,068 TEUR | 9,919 TEUR | |
| thereof rest of the world | 9,598 TEUR | 22,330 TEUR | |
| Research and development costs | ‑5,352 TEUR | ‑7,846 TEUR | |
| General administrative expenses | ‑9,996 TEUR | ‑6,105 TEUR | |
| Sales costs | ‑6,933 TEUR | ‑7,273 TEUR | |
| Result from operating activities | -5,941 TEUR | 4,782 TEUR | |
| EBITDA | -4,635 TEUR | 5,923 TEUR | |
| EBIT | -5,473 TEUR | 5,132 TEUR | |
| Earnings before taxes on income | -6,719 TEUR | ‑2,127 TEUR |
Operating developments in 2024
* For a second consecutive year, Ameluz® grew more than 25% in the German market
* Signature of a partnering agreement with Leo Pharma GmbH for two well established derma products (Advantan® and Skinoren®) in the German Market
* Distribution agreement signature with Galenica AB for Ovixan® in the UK market
* First implementation of the optimized Ameluz® formulation without propylene glycol
* Successful transfer of the execution of the clinical trial program to Biofrontera Inc
* Approval of the label extension to larger skin areas treated with up to 3 tubes of Ameluz® by FDA in USA
* Successful subscription of EUR 3M capital increase
* Sales guidance for 2024 achieved
* EBITDA without legal defense expenses provision EUR 357 thousand, upper level of initial guidance for 2024
"During 2024, the company has achieved two major milestones: maintaining sustainable sales growth of over 20% in Europe for the second consecutive year and signing two commercial agreements to expand the portfolio of Biofrontera AG in two key markets, the UK and Germany. These achievements support our strategic goal of gaining independence from Biofrontera Inc., while also contributing to the optimization of our cost structure in Europe." commented Pilar de la Huerta Martinez on the business performance of the last financial year. "Unfortunately, the ongoing litigation in the USA initiated by SunPharma (DUSA) against us requires the company to provision for the potential legal expenses related to these proceedings in 2024. If we neutralize the impact of this provision on our financial statements, and despite the high legal expenses incurred in 2024 and the significant reduction in revenues from the USA, the company's EBITDA would have amounted to €357k. This clearly reflects that the company remains consistently EBITDA-positive in terms of its core operational business. The transfer of the clinical trial program to Biofrontera Inc. has led to an improvement in the company's cost structure, providing us with greater flexibility to navigate any fluctuations in sales originating from the U.S. market. Biofrontera AG remains firmly committed to expanding its business across Europe, enhancing its portfolio through commercial agreements, with the objective of increasing profitability and reducing its high dependence on its main customer, Biofrontera Inc."
Financial forecast 2025
For 2025, we expect the trend of increasing revenues in Europe observed in recent years to continue. With Germany as the most important growth driver, we expect an average growth of over 10 %. On the other hand, the revenues with our US partner Biofrontera Inc. will remain at the previous year's level in 2025 due to the latest adjustment of the existing license agreement from June 2024 to maintain the transfer price in 2025 at 25% of the US net sales revenues generated. In 2026, that transfer price will increase to 30% and to 35% in later years
Regarding EBITDA, as all expenses related to several big IP litigations in place with DUSA (SunPharma) have been provisioned in 2024, during 2025 we expect to be positive from an EBITDA point of view, coming back to the profitable pathway we started during 2022.
The Group anticipates revenues of EUR 20,000 thousand to EUR 24,000 thousand for the 2025 financial year, with expected growth of between 10% to 12% for the European markets, while revenues from the US licensing business will be in line with 2024 due to the low transfer price for 2025. However, as all the clinical development was transferred to Biofrontera Inc during 2024, the final EBITDA result will be positive in 2025, in the range of EUR 0 thousand to EUR 3,000 thousand, placing the company back to a profitable pathway..
During 2025 we expect getting additional revenues from the products we are partnering with Leo Pharma GmbH in Germany. We are working, jointly with Galenica AB, on the transfer of the registration of Ovixan® in the UK, aiming to start selling the product in Q1 2026.
As of December 31, 2024, the Biofrontera Group held cash and cash equivalents of EUR 3,124 thousand. Based on the current corporate planning for 2025, the Group will have sufficient liquidity to meet all obligations for a further 12 months from the date of preparation. Assuming expenses and income developing as planned, the Group expects to have cash and cash equivalents between EUR 500 thousand and EUR 1,500 thousand as of December 31, 2025.
Marketing Europe
Sales development in Germany was very strong compared to the previous year. German product sales totaled EUR 7,831 thousand compared to EUR 6,257 thousand in 2023, an increase of around 25.2 %, Direct tube-based Ameluz® sales in the German market grew by around 26% in the reporting year compared to 2023. The share of Ameluz® PDT in the PDT segment grew from 65% in the previous year to 67% in 2024.
In the remaining European countries, Biofrontera generated product sales of EUR 4,238 thousand compared to EUR 3,662 thousand in 2023, an increase of 16%.
Marketing US
Biofrontera Inc. generated sales of EUR 9,415 thousand in the reporting period, a decrease of 57.5 % compared to the previous year. The main reason for this decrease is the change in the stockpiling policy at Biofrontera Inc. They have decided to monetize part of the stock due to cash constraints, and this change in its strategy has impacted our sales to them during 2024. On top, the change in the transfer price to 25% for 2024 has also affected our USA revenues.
Further key figures
For the fiscal year 2024, the company had forecasted an EBITDA between EUR -4,500 thousand and EUR -2,500 thousand, and with an actual EBITDA of EUR ‑4,635 thousand, this forecast range was slightly exceeded. Additionally, the EBIT of EUR ‑5,473 thousand has also been within the forecasted range of EUR -5,500 thousand to EUR -3,500 thousand without the legal expenses defense provision, EBITDA would have amounted to EUR 357 thousand, which is at the upper end of the initial guidance range.
Liquidity developed as forecasted, standing as of 31 December 2024 at EUR 3,124 thousand , and on the same level of the previous year at EUR 3,080 thousand. Liquidity is at the upper range of our forecast (EUR 1,000 thousand – EUR 3,000 thousand). Liquidity was significantly strengthened by a successfully implemented capital measure with gross issue proceeds of around EUR 3,300 thousand.
The cost control policy has been kept during the whole year, decreasing all operational expenditures compared with the previous year. Only legal expenses have been higher than last year due to the two legal cases filed by DUSA (SunPharma) against Biofrontera Inc and the whole group Biofrontera AG arguing a patent infringement related to the BF-RhodoLED® XL launched in the USA as well as a lawsuit related to marketing actions. Under IFRS rules, the company is required to provision the entire forecasted legal expenditure for the full processes. Total G&A costs in the reporting period amounted to EUR 9,996 thousand compared to EUR 6,105 thousand in the previous year. This includes a provision of EUR 4,992 thousand and legal expenditure of EUR 1.796 thousand incurred during the year. Excluding the legal expenditure linked to these processes, G&A cost would have been EUR 3,208 thousand, representing a decrease of 48% compared to the previous year.
Sales and marketing costs decreased to a total of EUR 6,933 thousand in the reporting year, compared to EUR 7,273 thousand in the previous year. This decrease is the result, again, of a very strong cost control policy implemented in the company.
Research and development costs totaled EUR 5,352 thousand in the reporting year compared to EUR 7,846 thousand in the previous year, representing a percentage decrease of 31.8 %. This decrease is due to the transfer of the clinical trials program to Biofrontera Inc on June 1st, 2024.
Regulatory and development progress
An improved Ameluz® formulation without propylene glycol was approved in 2023. This year, the improved Ameluz® formulation was implemented in the Ameluz® production for the US and EU. The removal of propylene glycol may have a positive impact on the safety profile of the Ameluz® gel eliminating potential risks, particularly regarding the formation of impurities and allergic reactions. This change is also a building block in a complex strategy to extend our market exclusivity.
In the USA, FDA approved a regulatory submission to increase the maximally approved dosage from one to three tubes of Ameluz® per treatment and an extension of the maximal skin surface to be treated."
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emitter: Biofrontera AG
address: Hemmelrather Weg 201, 51377 Leverkusen
country: Germany
contact person: Investor Relations
phone: +49 (0) 214 87 63 20
e-mail: ir@biofrontera.com
website: www.biofrontera.com
ISIN(s): DE000A4BGGM7 (share)
stock exchanges: regulated market in Dusseldorf, Frankfurt; free market in Munich, free market in Stuttgart; open market in Berlin, Tradegate