50% Revenue Growth Expected This Year for Biopharma Co.

May 30, 2022

The company is pursuing several strategies to boost revenue, including clinical trials to possibly expand the label of one of its approved dermatological drugs, noted a ROTH Capital Partners report.

Pharma

Biofrontera Inc. (BFRI:NASDAQ), which offers investors potential significant return, is expected this year to greatly increase its revenue and work to expand approved indications for one of its on-the-market therapeutics, reported ROTH Capital Partners analyst Jonathan Aschoff in a May 25th research note.

This Massachusetts-based biopharma is commercializing pharmaceutical products for the treatment of dermatological conditions, concentrating on photodynamic therapy and topical antibiotics. Its currently approved drugs are Ameluz, a gel used in combination with photodynamic therapy (PDT) using the BF‑RhodoLED lamp for actinic keratosis, and Xepi, a cream for impetigo.

ROTH’s price target on Biofrontera, based on projected future U.S. revenue from those two pharmaceuticals, is $20 per share. In comparison, the current share price of this life sciences company is around $2.68.

Biofrontera guided to generating 30% more revenue this year than last, but according to Aschoff, ROTH finds that estimate “very conservative.” The investment bank anticipates Biofrontera’s 2022 revenue growth to be more like 50%. To boost revenue, Biofrontera plans a push, through the rest of 2022, to generate more sales from its existing customers. The company is aggressively marketing Ameluz-PDT at dermatological conferences, too.

“Biofrontera also created a dedicated key accounts team to address the changing landscape of the dermatology industry and advanced plans for a new model of inside sales support to expand reach and frequency to newer and smaller accounts in the future,” wrote Aschoff.


Free Reports:

Get Our Free Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter





Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.





Already the company is showing progress in growing revenue. Its Q1/22 revenue was 106% higher than that in Q1/21, coming in at $9.8 million ($9.8M). Additionally, Biofrontera’s best month ever was March of this year.

“We look forward to favorable YOY growth in quarterly revenue,” Aschoff commented, adding the caveat that sequential quarterly revenue can be misleading given the seasonal nature of Ameluz-PDT treatments.

Biofrontera has $30.8M on the balance sheet, enough to fund operations to profitability according to ROTH’s forecasts, Aschoff pointed out.

Regarding Ameluz-PDT, the outlook for market expansion is positive, Aschoff purported, and capturing greater market share would generate additional revenue. The combination therapy currently holds about 26% of the actinic keratosis treatment market and potentially could increasingly capture cryotherapy’s share, “especially given Ameluz-PDT’s advantages related to efficacy and level of reimbursement.”

Aschoff added, “We view Ameluz-PDT as the most effective therapy for mild-to-moderate actinic keratosis.”

To better position Ameluz-PDT in the actinic keratosis market and expand its indications, three clinical trials are underway:

1) A Phase 1 safety trial evaluating the use of three tubes of Ameluz applied at once followed by illumination with the BF-RhodoLED XL PDT lamp versus the currently approved use, one Ameluz tube with illumination by the smaller BF-RhodoLED lamp. Simultaneous application of three tubes of Ameluz would save clinicians time and thus, afford Ameluz-PDT another advantage over competing treatments. This study is expected to be completed this year, with results to follow either in late 2022 or early 2023.

2) A Phase 2b trial in moderate to severe acne, comparing one-hour and three-hour incubations of Ameluz before illumination. Completion of enrollment, underway, is expected by year-end 2022 (YE22).

3) A Phase 3 trial evaluating Ameluz-PDT in superficial basal cell carcinoma. Enrollment, now about 75% done, should also be completed by YE22.

Additionally, recent news bodes well for Ameluz’s future, Aschoff noted. The U.S. Food and Drug Administration approved the laboratory of Biofrontera’s partner in Germany, Biofrontera Pharma, responsible for the commercialization of Ameluz outside of the U.S. At the lab, batch control and stability testing of the product will be conducted. Ultimately, Biofrontera will have greater control of Ameluz, as these processes will be able to be done in-house rather than by a third party.

Also positive for Ameluz are newly released skin cancer statistics. This year, about 3.4 million people in the U.S. could be diagnosed with a nonmelanoma form of it, according to American Cancer Society data. In addition, the global market for this indication is expected to grow at a rate of 5.8%, or by $180M, through 2026, a survey by ReportLinker showed.

Disclosures

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional, and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice, and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in the securities mentioned. Directors, officers, employees, or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

6) This article does not constitute medical advice. Officers, employees, and contributors to Streetwise Reports are not licensed, medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures for Roth Capital Partners, Biofrontera, Inc., May 25, 2022

Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Biofrontera, Inc. ROTH makes a market in shares of Biofrontera, Inc. and as such, buys and sells from customers on a principal basis. Shares of Biofrontera, Inc. may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities. Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has managed or co-managed a public offering for Biofrontera, Inc.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH.