Biofrontera report results for the first six months of 2020 - Seite 3

EU commercial update

In Germany, our most important EU market, business performance was much more positive. Despite the pandemic, product-related revenue increased by about 10% to EUR 2.4 million in the first half of 2020 compared to EUR 2.2 million in the same period of 2019. Product sales of EUR 1.0 million were generated in the rest of Europe, compared to EUR 1.4 million in the prior year period.

The label expansion of Ameluz for the treatment of actinic keratoses on the body and extremities, which was granted in March, and the excellent study data accompanying it were leveraged to bring Ameluz to the attention of the dermatologists. The benefits of daylight PDT in the consistently good weather conditions, which allowed the treatment to be carried out without direct contact with a physician, became particularly evident. Also contributing to this was the approval to include further results from the comparative study with the European competitor drug in the official product information. The study has shown that one year after treatment of actinic keratoses with Ameluz in combination with daylight-PDT, the recurrence rates are significantly lower than those after treatment with the competitor's product for daylight PDT.

The strong sales development in Spain in the first months of the year was temporarily halted due to the particularly strict lockdown regulations there. In the UK, too, there are signs that the work of our sales force is bearing fruit and that sales are beginning to increase. The continuous growth in sales in all European countries is a consequence of the European approval for daylight PDT.
Sales with distribution partners in other European countries only contribute a small percentage of total sales.

Expenses and liquidity

As a result of the measures introduced throughout the Company, operating expenses were significantly reduced in Q2 2020 compared to Q1 2020 and overall in the reporting period compared to the same period last year. In particular, sales and marketing expenses were reduced year-on-year. Alongside the implemented measures, administrative expenses were also reduced due to lower legal costs.

The result from operating activities improved by EUR 8,6 million to EUR -4,3 million compared to EUR -12,9 million, mainly due to the cost reduction measures implemented in the reporting period and effects from the first-time consolidation of Cutanea included in last year’s figure.

Earnings before income taxes amounted to EUR -5.2 million compared to EUR +9.0 million in the corresponding period of the prior year, which included positive one-time effects in Other Income of EUR 22.8 million from the Cutanea acquisition.