Biofrontera AG

Biofrontera Reports Financial Results for Third Quarter and First Nine Months of 2017 - Seite 2

Third Quarter and First Nine Months 2017 Financial Highlights:
- Revenues increased by 155% to Eur7.3 million in the first nine months 2017, compared to Eur2.9 million in the same period 2016.
- Net loss was Eur14.6 million in the first nine months 2017, compared to Eur7.2 million in the same period 2016.
- Cash and cash equivalents was Eur13.3 million as of September 30, 2017.
- Warrant bond 2009/2017 repaid early.
- Adjusted full year 2017 revenue estimates to Eur12 million.

Recent Operational and Clinical Development Highlights:
- Received product-specific J-Code and revised CPT codes from The Centers for Medicare and Medicaid Services (CMS) that we believe will improve reimbursement for PDT prescribing physicians in the United States, effective from January 2nd, 2018
- Agreement with U.S. on the requirements necessary to obtain approval for our application of Ameluz® PDT for the treatment of supercial BCC in the U.S.
- Launched Ameluz® for actinic keratosis in Israel
- Strengthened U.S. commercial operations and internal sales support services with addition of Jeff Holm as VP of Marketing

Biofrontera generated total revenue of Eur7.3 million in the first nine months of 2017, representing an increase of 155% year-over-year. Revenue in Germany amounted to Eur1.7 million, reflecting a slight increase of Eur185k compared with the previous year. Revenue in the rest of Europe increased by 61% to Eur1.2 million compared to Eur753k for the first nine months of 2016. Significant progress was achieved in the U.S. with total revenue of Eur3.4 million.

The first nine months of 2017 consolidated net result was (Eur14.6) million. This is significantly below the previous year's (Eur7.1) million, predominantly due to higher U.S. sales and marketing expenses as well as financing costs incurred on the EIB loan and legal fees. In 2016 we also recorded positive other income of Eur2.1 million due to the refunding of the PDUFA fee by the FDA which did not re-occur in 2017.

Cash and cash equivalents were Eur13.3 million as of September 30 2017, compared to Eur15.1 million as of December 31, 2016. In July, the first tranche of the EIB loan of Eur10 million was drawn and subsequently the outstanding option bond amounting to Eur5.46 million including interest was repaid.

U.S. Commercial Update
Biofrontera continues to establish a strong presence in the United States in the treatment of superficial skin cancers with Ameluz® and BF-RhodoLED® for AK. During the first nine months of 2017, Biofrontera reported total U.S. sales of Eur3.4 million. The Company currently has 30 sales representatives covering the entire U.S. Additionally, Biofrontera recently appointed Jeffrey Holm, an experienced marketing manager with a broad network in the dermatology market, as the Vice President of Marketing. Jeff's appointment follows the Company's recent expansion of its U.S. sales operations to include full service healthcare provider support which we believe will allow the Company to better react to customer needs while reducing long term costs.