Biofrontera report results for the first six months of 2020

Leverkusen, Germany, Aug. 26, 2020 (GLOBE NEWSWIRE) -- Biofrontera AG (NASDAQ: BFRA; Frankfurt Stock Exchange: B8F) (the “Company”), an international biopharmaceutical company, today published its results for the first six months ended June 30, 2020. In addition, the Company provided an overview of the current business performance.

Key financial figures first half of 2020

• Total revenues increased by 16% to EUR 16.1 million compared to EUR 13.9 million in the first six months of 2019.
• Product sales generated revenues of EUR 9.7 million, a decrease of 30% compared to the first half of 2019.
• Cost-reduction measures lead to a significant decrease in operating costs compared to the same period last year.
• For the first half of 2020, Biofrontera reports a loss on operations of EUR 4,3 million (prior year period: EUR 12,9 million).
• Cash and cash equivalents as of June 30, 2020, amounted to approximately EUR 10.6 million compared to EUR 11.1 million as of December 31, 2019.

Operational performance in the first half of 2020

• Strengthening the commercial orientation of the US business by reorganizing the US subsidiary Biofrontera Inc.
• Expanded EU approval for Ameluz for the treatment of actinic keratoses on extremities and trunk/neck.
• Initiation of a pharmacokinetics study (PK study) in the USA, testing the safety of PDT with three tubes of Ameluz.
• Exclusive licensing agreement with Maruho Co., Ltd. (Maruho) for the development and commercialization of Ameluz for all indications in East Asia and Oceania, receipt of a one-time payment of EUR 6 million
• Strong impact of the COVID-19 crisis on business performance and large revenue declines, particularly in the USA.

"Due to the challenging market conditions, Biofrontera's business performance in the first six months of the year was mixed. At the beginning of the year, we successfully reorganized the global sales structure, expecting accelerated sales growth in the short term. From March onwards, however, we were forced by the pandemic to implement substantial cost reduction measures throughout the company. The decline in revenues from product sales is largely due to the dynamic development of the crisis in the USA. Overall, however, the US-revenue decline was compensated by the positive sales development in Germany and the one-time payment from Maruho as part of the licensing agreement. In the second half of the year, we expect sales to recover as the number of infections subsides and the economic situation in the US returns to some degree of normality. Therefore, we maintain our overall revenue guidance for 2020. The successful placement of the mandatory convertible bond in August gives us the opportunity to make urgently needed investments in our sales and marketing activities," commented Prof. Dr. Hermann Lübbert, CEO of Biofrontera AG.