Biofrontera report results for the first six months of 2020 - Seite 2

Key financial figures first half of 2020

in EUR thousands	6M 2020		6M 2019		Change
Sales revenue		16,116		13,904		2,212
Research and development costs		(2,389)		(2,322)		(67)
General administrative costs		(4,412)		(7,768)		3,356
Sales and marketing costs		(12,151)		(14,195)		2,044
Other expenses and income		(191)		23,236		(23,045)
Loss on operations		(4,327)		(12,864)		8,537
Loss/profit before income tax		(5,233)		9,027		(14,260)

US commercial update

Revenue from sales in the U.S. for the first half of the year was EUR 6.3 million, compared to EUR 10.2 million for the same period in 2019. This corresponds to a 38% decrease in revenue when compared to the same period last year. Revenues include EUR 0.2 million from Xepi product sales (prior year: EUR 0.3 million).

Since mid-March 2020, Biofrontera has been directly affected by the global coronavirus crisis. The rising infection rates and the measures to contain the pandemic have led to practice closures and a significant decrease in patient numbers, particularly in the USA. As a consequence, our sales, primarily in the USA, have slumped sharply, leading to the introduction of significant cost reduction measures throughout the company. After sales of our products in the US had initially dropped almost to zero in April, a slow recovery of the US business became evident in May and June. However, due to the continuing dynamics of the coronavirus crisis in the USA and the delayed onset of the pandemic in many states, the situation remains difficult to evaluate. The strengthening of the commercial alignment of the US business by reorganizing the US subsidiary Biofrontera Inc. will continue in the second half of the year. In the current year, marketing expertise in particular has been significantly strengthened within the company and will be further expanded in the future.