Biofrontera Inc. Reports Second Quarter 2023 Financial Results and Provides a Business Update
- Total revenues increased by 31% from the prior-year period
- Affirms guidance for 2023 revenue growth of at least 25% compared with 2022
- Net loss for Q2 2023 was $9.8 million, compared with a net loss of $850,000 for the prior-year quarter
Conference call begins at 8:30 a.m. Eastern time today
WOBURN, MA / ACCESSWIRE / August 11, 2023 / Biofrontera Inc. (Nasdaq:BFRI) (the "Company"), a biopharmaceutical company specializing in the commercialization of dermatologic products, today reported financial results for the three and six months ended June 30, 2023 and provided a business update.
Highlights from the second quarter of 2023 and subsequent weeks included the following:
- Total revenues were
$5.8 million , an increase of31% from the comparable prior-year period - Cash and cash equivalents were
$4.5 million as of June 30, 2023, compared with$17.2 million as of December 31, 2022 - Equity investment in shares of Biofrontera AG were
$5.9 million as of June 30, 2023 - Named Founder and Executive Chairman Hermann Luebbert as Chief Executive Officer, who continues to serve as Chairman of the Board of Directors
- Appointed life sciences industry veteran Heikki Lanckriet, Ph.D. to the Board of Directors
- A U.S. patent related to a novel photodynamic therapy (PDT) protocol that is expected to be less painful but similarly effective to conventional PDT awarded to our licensing partner
- Engaged a contract manufacturer to develop a new, low-cost portable PDT lamp for use with Ameluz® (Ameluz-PDT)
- Announced last patient out in a Phase 1 clinical study evaluating the safety and tolerability of treating AK using three tubes of Ameluz
- Announced last patient enrolled in Phase 3 clinical study evaluating Ameluz-PDT for the treatment of superficial Basal Cell Carcinoma
Management Commentary
"Biofrontera has always been a leader in innovation in PDT, and with advancements expected in multiple ongoing clinical studies for Ameluz, we are positioned for significant market expansion and revenue potential. In addition to the recent progress in ongoing clinical studies, I am proud of our team now beginning work on an early prototype of a portable PDT lamp, which has the potential not only to expand the use of Ameluz-PDT to physician offices with space limitations, but also to provide our sales force with a new selling proposition that can be easily transported and demonstrated to prospective customers," said Hermann Luebbert, Chief Executive Officer and Chairman of Biofrontera.
"With enhancements to our commercial strategy that range from more impactful marketing to focusing investments in higher-value sales territories, we are proud of our second quarter financial results as product revenues grew by
Second Quarter Financial Results
Total revenues for the second quarter of 2023 were
Total operating expenses were
The net loss for the second quarter of 2023 was
Adjusted EBITDA for the second quarter of 2023 was negative
Six Month Financial Results
Total revenues were
Total operating expenses were
The net loss for the first half of 2023 was
Adjusted EBITDA was negative
The below table presents a reconciliation from net income (loss) to Adjusted EBITDA for the three and six months ended June 30, 2023 and 2022:
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | (9,837 | ) | $ | (850 | ) | $ | (17,315 | ) | $ | 4,711 | |||||
Interest expense, net | 79 | 38 | 114 | 71 | ||||||||||||
Income tax expense | 14 | - | 20 | 30 | ||||||||||||
Depreciation and amortization | 253 | 132 | 518 | 263 | ||||||||||||
EBITDA | (9,491 | ) | (680 | ) | (16,663 | ) | 5,075 | |||||||||
Change in fair value of contingent consideration | 100 | (1,900 | ) | (100 | ) | (1,900 | ) | |||||||||
Change in fair value of warrant liabilities | (375 | ) | (5,371 | ) | (1,403 | ) | (14,082 | ) | ||||||||
Change in fair value of investment, related party | 1,482 | - | 4,424 | - | ||||||||||||
Legal settlement expenses | 107 | 261 | 1,225 | 313 | ||||||||||||
Stock compensation expense | 259 | 551 | 610 | 1,068 | ||||||||||||
Adjusted EBITDA | $ | (7,918 | ) | $ | (7,139 | ) | $ | (11,907 | ) | $ | (9,526 | ) | ||||
Adjusted EBITDA margin | -135.4 | % | -160.2 | % | -81.7 | % | -67.0 | % | ||||||||
As of June 30, 2023, Biofrontera had cash and cash equivalents of
Financial Expectations
Biofrontera Inc. affirms expectations for full-year 2023 growth in revenue to be at least
Conference Call and Webcast
Biofrontera Inc. will hold a conference call today at 8:30 a.m. Eastern time to discuss these results and answer questions.
Date: Friday, August 11, 2023
Time: 8:30 a.m. Eastern time
Conference Call: 1-877-877-1275 (U.S. toll-free)
1-412-858-5202 (international)
Webcast: Live and 90-day replay webcast are available here and at investors.biofrontera-us.com.
About Biofrontera Inc.
Biofrontera Inc. is a U.S.-based biopharmaceutical company commercializing a portfolio of pharmaceutical products for the treatment of dermatologic conditions with a focus on photodynamic therapy (PDT) and topical antibiotics. The Company's licensed products are used for the treatment of actinic keratoses, which are pre-cancerous skin lesions, as well as impetigo, a bacterial skin infection. For more information, visit www.biofrontera-us.com and follow Biofrontera on LinkedIn and Twitter.
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended to date. These statements include, but are not limited to, statements relating to Biofrontera Inc.'s (the "Company") 2023 revenue guidance, clinical trials for Ameluz® and potential for label expansion, improved market opportunities, the potential impact of developing new PDT lamp prototypes and the impact of enhancements to sales strategy. We have based these forward-looking statements on our current expectations and projections about future events, nevertheless, actual results or events could differ materially from the plans, intentions and expectations disclosed in, or implied by, the forward-looking statements we make. These risks and uncertainties, many of which are beyond our control, including, but not limited to, the impact of any extraordinary external events; any changes in the Company's relationship with its licensors; the ability of the Company's licensors to fulfill their obligations to the Company in a timely manner; the Company's ability to achieve and sustain profitability; whether the current global disruptions in supply chains will impact the Company's ability to obtain and distribute its licensed products; changes in the practices of healthcare providers, including any changes to the coverage, reimbursement and pricing for procedures using the Company's licensed products; the uncertainties inherent in the initiation and conduct of clinical trials; availability and timing of data from clinical trials; whether results of earlier clinical trials or trials of Ameluz® in combination with BF-RhodoLED® in different disease indications or product applications will be indicative of the results of ongoing or future trials; uncertainties associated with regulatory review of clinical trials and applications for marketing approvals; whether the market opportunity for Ameluz® in combination with BF-RhodoLED® is consistent with the Company's expectations; the Company's ability to comply with public company requirements; the Company's ability to retain and hire key personnel; the sufficiency of cash resources and need for additional financing and other factors that may be disclosed in the Company's filings with the SEC, which can be obtained on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management's current estimates, projections, expectations and beliefs. The Company does not plan to update any such forward-looking statements and expressly disclaims any duty to update the information contained in this press release except as required by law.
Contact:
LHA Investor Relations
Tirth T. Patel
212-201-6614
tpatel@lhai.com
(Tables follow)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and share amounts)
| June 30, 2023 | December 31, 2022 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,453 | $ | 17,208 | ||||
Investment, related party | 5,935 | 10,548 | ||||||
Accounts receivable, net | 2,193 | 3,748 | ||||||
Other receivables, related party | 4,001 | 3,658 | ||||||
Inventories | 14,785 | 7,168 | ||||||
Prepaid expenses and other current assets | 929 | 810 | ||||||
Total current assets | 32,296 | 43,140 | ||||||
Other receivables long term, related party | - | 2,813 | ||||||
Property and equipment, net | 175 | 204 | ||||||
Operating lease right-of-use assets | 1,107 | 1,375 | ||||||
Intangible asset, net | 2,823 | 3,032 | ||||||
Other assets | 504 | 320 | ||||||
Total assets | $ | 36,905 | $ | 50,884 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | 1,243 | 1,278 | ||||||
Accounts payable, related parties | 4,657 | 1,312 | ||||||
Acquisition contract liabilities, net | 7,121 | 6,942 | ||||||
Operating lease liabilities | 489 | 498 | ||||||
Accrued expenses and other current liabilities | 10,736 | 10,864 | ||||||
Line of credit | 1,106 | - | ||||||
Total current liabilities | 25,352 | 20,894 | ||||||
Long-term liabilities: | ||||||||
Acquisition contract liabilities, net | 2,300 | 2,400 | ||||||
Warrant liabilities | 1,440 | 2,843 | ||||||
Operating lease liabilities, non-current | 600 | 848 | ||||||
Other liabilities | 40 | 21 | ||||||
Total liabilities | 29,732 | 27,006 | ||||||
Commitments and contingencies (Note 18) | - | - | ||||||
Stockholders' equity: | ||||||||
Preferred Stock, | - | - | ||||||
Common Stock, | 27 | 27 | ||||||
Additional paid-in capital | 103,980 | 103,370 | ||||||
Accumulated deficit | (96,834 | ) | (79,519 | ) | ||||
Total stockholders' equity | 7,173 | 23,878 | ||||||
Total liabilities and stockholders' equity | $ | 36,905 | $ | 50,884 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts and number of shares)
(Unaudited)
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Product revenues, net | $ | 5,830 | $ | 4,441 | $ | 14,544 | $ | 14,177 | ||||||||
Revenues, related party | 18 | 16 | 36 | 31 | ||||||||||||
Total revenues, net | 5,848 | 4,457 | 14,580 | 14,208 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of revenues, related party | 2,772 | 2,402 | 7,319 | 7,377 | ||||||||||||
Cost of revenues, other | 116 | 152 | 167 | 327 | ||||||||||||
Selling, general and administrative | 11,456 | 9,669 | 21,254 | 17,285 | ||||||||||||
Selling, general and administrative, related party | 92 | 346 | 119 | 441 | ||||||||||||
Research and development | 11 | - | 11 | - | ||||||||||||
Change in fair value of contingent consideration | 100 | (1,900 | ) | (100 | ) | (1,900 | ) | |||||||||
Total operating expenses | 14,547 | 10,669 | 28,770 | 23,530 | ||||||||||||
Loss from operations | (8,699 | ) | (6,212 | ) | (14,190 | ) | (9,322 | ) | ||||||||
Other income (expense) | ||||||||||||||||
Change in fair value of warrants | 375 | 5,371 | 1,403 | 14,082 | ||||||||||||
Change in fair value of investment, related party | (1,482 | ) | - | (4,424 | ) | - | ||||||||||
Interest expense, net | (79 | ) | (38 | ) | (114 | ) | (71 | ) | ||||||||
Other income, net | 62 | 29 | 30 | 52 | ||||||||||||
Total other income (expense) | (1,124 | ) | 5,362 | (3,105 | ) | 14,063 | ||||||||||
Income (loss) before income taxes | (9,823 | ) | (850 | ) | (17,295 | ) | 4,741 | |||||||||
Income tax expense | 14 | - | 20 | 30 | ||||||||||||
Net income (loss) | $ | (9,837 | ) | $ | (850 | ) | $ | (17,315 | ) | $ | 4,711 | |||||
Income (loss) per common share: | ||||||||||||||||
Basic | $ | (7.23 | ) | $ | (0.90 | ) | $ | (12.73 | ) | $ | 5.24 | |||||
Diluted | $ | (7.23 | ) | $ | (0.90 | ) | $ | (12.73 | ) | $ | 5.22 | |||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 1,360,739 | 941,175 | 1,359,894 | 898,444 | ||||||||||||
Diluted | 1,360,739 | 941,175 | 1,359,894 | 902,209 | ||||||||||||
# # #
SOURCE: Biofrontera Inc.
View source version on accesswire.com:
https://www.accesswire.com/773741/Biofrontera-Inc-Reports-Second-Quarter-2023-Financial-Results-and-Provides-a-Business-Update
FAQ
What were the total revenues for Q2 2023?
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