Biofrontera Inc. Q1 FY2024 earnings call

• Successfully renegotiated the license and supply agreement for Ameluz with Biofrontera AG, reducing costs significantly. Will pay 25% for Ameluz in 2024 and 2025 compared to prior agreement.
• Raised $8 million in February and another $8 million via warrant exercise in early May.
• Impacted by Change Healthcare cyberattack in February, but year-to-date April 2024 shows over 5% revenue growth.
• BF-RhodoLED lamps had 28 placements in Q1 2024, a 115% increase from prior year.
• Preparations for takeover of clinical trial departments for Biofrontera Bioscience, with ongoing clinical studies for actinic keratosis and acne, and a third study for superficial basal cell carcinoma nearing completion of one-year follow-up.
• New Ameluz formulation without propylene glycol for actinic keratosis to begin production shortly, expected to be delivered to wholesaler in August.

In the first quarter of 2024, total revenues were $7.9 million, down from $8.7 million in the first quarter of 2023. Cost of revenue was $4.1 million in Q1 2024 compared to $4.6 million in the prior year quarter. Ameluz makes up most of the revenue. The decrease in revenue was due to health care reimbursement issues from the Change Healthcare cyberattack. The BF-RhodoLED lamps saw a 115% increase in placements in Q1 2024 compared to the prior year quarter, contributing to future growth potential.

• Cash flow breakeven around year-end 2025 remains the expectation, supported by savings from LSA amendments later in 2024 through 2025.
• XL lamp (RhodoLED XL) expected to launch by the end of Q2 2024.

• Impact of Change Healthcare cyberattack in February negatively affected Q1 revenue.
• Ongoing health care reimbursement challenges.
• Biofrontera AG's voluntary recall of three batches of Ameluz, with replacement batches expected in the third quarter.

Q: Does the greater than 5% Jan through April sales result simply fit the definition of one of the two milestones to trigger the second $8 million investment or is it really close to 5%?

A: Based on the milestone, it was tied to the milestone, and an update on Q2 will be given in August.

Q: Are you guys still comfortable with cash flow breakeven around the year-end '25 or has that changed?

A: That is still the expectation, with savings from LSA amendments helping fund it as long as budget numbers are hit.

Q: Did the last basal cell carcinoma patient have their final assessment last quarter and when will data be available?

A: The last patient would be in November or December, with follow-up data available early in Q2 and prepared for FDA submission.

Q: How do you think the rest of the year unfolds sales-wise?

A: The cyberattack impact was mostly in February and March, with April showing an upswing, and no long-term impact expected, expecting same growth as beginning of the year.

Q: When is the XL lamp going to launch?

A: It's going to launch by the end of Q2.