In This Article:
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Biofrontera Inc (NASDAQ:BFRI) reported a significant increase in the total number of Ameluz tubes ordered, alongside a reduction in costs.
-
The company improved its FDA label, allowing the use of up to three tubes of Ameluz per treatment, enhancing flexibility for healthcare providers.
-
Outstanding clinical results were achieved for a new indication, with a high degree of statistical significance in the superficial BCC phase three study.
-
The launch of the RDO LED XL lamp has been successful, with 105 new lamps installed in the first three quarters of 2024.
-
Biofrontera Inc (NASDAQ:BFRI) has taken control over clinical trials, leading to a reduced transfer price for Ameluz, which is expected to improve profitability.
Negative Points
-
Revenues in the third quarter were impacted by delayed shipments due to Hurricane Milton, affecting growth figures.
-
The net loss for the third quarter of 2024 was $5.7 million, although this was an improvement from the previous year.
-
Adjusted EBITDA for the third quarter was negative $4.6 million, reflecting higher general and administrative costs.
-
Legal expenses increased by $0.8 million due to complaints filed by Doa Pharmaceuticals, impacting financial performance.
-
The company is still not cash flow break-even and anticipates reaching this milestone towards the end of 2025 or early 2026.
Q & A Highlights
Q: When will the cost of revenue start to reflect the new 25% rate rather than the older 50% rate? A: Fred Leffler, CFO: We expect to see that impact in the fourth quarter as we needed to go through our older inventory first.
Q: Do you still expect to be cash flow break-even by the end of next year and to grow revenue by 20% over 2023? A: Fred Leffler, CFO: We expect revenue growth similar to prior years, in the mid to high 10s, and anticipate reaching cash flow break-even towards the end of 2025 or early 2026.
Q: With the shipments delayed to October, did you apply the October 1 price hike or maintain the older price? A: Fred Leffler, CFO: We grandfathered in the older price as all orders were placed in Q3, despite the shipping delays caused by weather.
Q: Can you provide the enrollment numbers for the Acne and peripheral AK trials? A: Herman, CEO: Enrollment for the peripheral AK trial is 130 of 165 patients, and for the Acne study, it is 106 of 126.
Q: How do you see the fourth quarter developing in terms of revenue after the price increase? A: Fred Leffler, CFO: We expect growth in line with prior years, with a strong Q4 anticipated. The price increase was 5%, similar to last year, and Q4 is typically our strongest quarter.