Biofrontera confirms financing need
Leverkusen, Germany, June 30, 2020 (GLOBE NEWSWIRE) -- Biofrontera AG (NASDAQ: BFRA; Frankfurt Stock Exchange: B8F) (the “Company”), an international biopharmaceutical company, today confirmed the financing requirements to maintain ongoing business operations.
During a hearing before the Higher Regional Court of Cologne to review the Company’s request to release an authorized capital approved by the 2017 Annual General Meeting, the Company was requested to elaborate on the financing needs stated in the 2019 financial statements.
Biofrontera confirmed the statement already made in the 2019 financial statements that, from today's perspective, there is a financing need of at least EUR 5 million to maintain business operations until the end of April 2021. This forecast is based on the assumption that the gradual easing of measures to contain the corona pandemic, especially in the USA, will lead to a significant improvement in revenue generation in Q3 and Q4 2020 and Q1 2021 compared to Q2 2020. Overall, the Company expects to generate revenues of EUR 34 to 38 million 2020 (including the one-time license payment of EUR 6 million received from Maruho Co., Ltd. in April 2020). The Company continues to assume that expenditures in Q3 and Q4 2020 will return to the level of Q1 2020. In order to achieve these revenue targets, it is particularly necessary to increase spending on sales and marketing, especially in the USA.
Should the anticipated recovery and upturn in sales revenue fail to materialize or even be less pronounced due to the further development of the COVID-19 pandemic, the financing requirements would increase and should be implemented more promptly, despite the expected lower cost burden.
The Company continues to plan to cover the financing needs in the short-term by means of a capital measure. Within the scope of this capital measure, additional funds are to be raised to enable the Company to push the strategic development of its products as well as the strengthening of its market positioning forward.
Prof. Dr. Hermann Lübbert, CEO of Biofrontera AG, commented: "We have mixed expectations for the second half of 2020. While sales in Germany are currently developing more positively again, we have considerable uncertainties about the future business performance in the USA. Given the current situation with growing numbers of Covid-19 infections, particularly in the southern United States, it remains impossible to make a reliable forecast. However, we intend to continue our focus on investing in our US sales and marketing activities in order to realize all possible business opportunities available to us. Additional financial resources will be required for this, but also for the future growth of Biofrontera. Should there be further restrictions or even a further lock-down, this would naturally also affect our financing requirements.”