Biofrontera Reports $5.3 Million Net Loss in Q2 2025, Revenue Increases 15.3%

Biofrontera Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $5.3 million, compared to a loss of $257,000 in the same period last year. For the six months ended June 30, 2025, the company recorded a net loss of $9.5 million, an improvement from a loss of $10.7 million in the prior year. Total revenues for the second quarter increased by 15.3% to $9.0 million, driven by a 5% rise in unit sale prices and a 9.5% increase in sales volume of its primary product, Ameluz®. For the first half of 2025, total revenues reached $17.6 million, up from $15.7 million in the same period of 2024.

The company’s operating expenses for the second quarter rose to $14.1 million, up from $12.9 million a year earlier, primarily due to a significant increase in legal costs related to ongoing patent claims. However, costs of revenues from related parties decreased by 41.8% to $2.4 million, reflecting a more favorable cost structure under the amended license agreement for Ameluz®. Research and development expenses also increased, reflecting the company's assumption of all clinical trial activities for Ameluz® in the U.S. as of June 1, 2024.

In terms of strategic developments, Biofrontera announced a binding agreement on June 30, 2025, to acquire all U.S. rights to Ameluz® and RhodoLED® from its former parent company, Biofrontera AG. This strategic transaction is expected to be completed by September 30, 2025, and will involve a royalty payment structure that replaces the previous transfer pricing model. Additionally, the company is in the process of finalizing a private placement of Series C Preferred Stock, which has already generated $8.5 million in gross proceeds, with a second tranche expected to close soon.

Operationally, Biofrontera reported a significant increase in its customer base, with 10,138,567 shares of common stock outstanding as of June 30, 2025. The company is also working to divest its Xepi product line, which has been classified as an asset held for sale, with expectations to complete the sale within the next three months. Despite these developments, the company faces challenges, including substantial doubt about its ability to continue as a going concern, as it has accumulated a deficit of $126.9 million and reported cash and cash equivalents of $7.2 million as of June 30, 2025.

Looking ahead, Biofrontera aims to leverage its recent strategic transaction and the anticipated proceeds from the Series C Preferred Stock offering to enhance its liquidity and support ongoing operations. The company plans to address its financial challenges by exploring additional financing options and finalizing the sale of its Xepi product line. However, there is no assurance that these efforts will be successful, and the company may need to delay or reduce its commercialization and R&D activities if it cannot secure sufficient funding.