Biofrontera Inc., a U.S.-based biopharmaceutical company specializing in dermatological treatments, reported its financial results for the third quarter and the nine months ended September 30, 2024. The company is not classified as an emerging growth company and has 7,749,211 shares of common stock outstanding.

For Q3 2024, Biofrontera generated total revenues of $9,012,000, a slight increase from $8,896,000 in Q3 2023. Product revenues rose to $9,012,000 from $8,879,000 year-over-year. For the nine months ended September 30, 2024, total revenues reached $24,762,000, compared to $23,475,000 in the same period of 2023. The increase in revenue was primarily driven by a rise in average sale prices for Ameluz®, despite a decrease in sales volume attributed to shipping delays caused by Hurricane Milton.

Operating expenses for Q3 2024 totaled $13,972,000, up from $13,516,000 in Q3 2023. For the nine-month period, operating expenses decreased to $40,260,000 from $42,287,000 in the prior year. The net loss for Q3 2024 was $(5,669,000), an improvement from $(6,342,000) in Q3 2023. For the nine months ended September 30, 2024, the net loss was $(16,363,000), significantly lower than $(23,657,000) for the same period in 2023. The loss per share for Q3 2024 was $(0.98), compared to $(4.64) in Q3 2023.

The company’s cash and cash equivalents increased to $2,873,000 as of September 30, 2024, from $1,343,000 at the end of 2023. Total current assets decreased to $16,931,000 from $23,075,000, while total liabilities fell to $12,986,000 from $23,139,000 during the same period. The total stockholders’ equity rose to $5,530,000 from $4,793,000.

Strategically, Biofrontera has decided to divest its Xepi product line, which is currently classified as held for sale, with a sale expected to complete within 6 to 12 months. The company has also entered into a new exclusive license and supply agreement for Ameluz®, effective February 13, 2024, which includes a revised pricing structure. Additionally, Biofrontera assumed control of all clinical trials related to Ameluz® in the U.S. as of June 1, 2024, to enhance cost management.

Management has expressed concerns regarding the company's ability to continue as a going concern for at least twelve months from the issuance date of the financial statements. Plans to improve liquidity and profitability include expanding the commercialization of Ameluz®, reducing discretionary expenses, and pursuing additional capital.