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Biofrontera in crisis: Massive financial problems and looming future!
Biofrontera Inc. and Leverkusener AG face financial challenges in 2025. New deals and restructurings are in the works.
Biofrontera in crisis: Massive financial problems and looming future!
The news about Biofrontera Inc. from Woburn, Massachusetts, has put Leverkusen-based AG in a difficult position. At the 2025 Annual General Meeting, board member Pilar de la Huerta reported significant financial arrears that were burdening the company. Meanwhile, the largest market for Ameluz, an ointment used to treat superficial skin cancer, is taking a new course. ksta.de points out that negotiations are currently underway for new agreements between the two companies in Woburn and Leverkusen.
Biofrontera AG is also suffering from financial problems. A new commission model was negotiated to help Biofrontera Inc. get off the ground. A further step towards stabilization is the sale of the US license for the cream Xepi to Pelthos Therapeutics. This license sale could reach a volume of up to $10 million.
Financial measures and new agreements
The contract with Pelthos includes multiple payment tranches: $3 million upon closing, $1 million upon product availability, and potential milestone payments of up to $6 million depending on annual sales targets. Biofrontera will also receive $3 million each if Xepi achieves annual net sales of $10 million and $15 million, respectively, in the United States, Puerto Rico and the U.S. Virgin Islands. Responsibility for manufacturing Ameluz and RhodoLED lamps for the US market has also been transferred from AG to Inc. in terms of regulatory and commercial responsibilities. globenewswire.com reports a new, reduced royalty rate of 12% for Biofrontera Inc., which represents significant relief compared to previous rates of 25-35%.
The restructuring is supported by $11 million in financing led by Rosalind Advisors and AIGH Capital Management LLC. These funds will help cover transfer costs and the acquisition of all relevant U.S. assets. These assets are in particular the New Drug Application (NDA) and the associated patents for Ameluz and RhodoLED.
Future outlook
Hermann Lübbert, CEO of Biofrontera, expressed the hope that these measures will help strengthen the company's balance sheet and secure financing until it reaches profitability. However, it remains questionable as to when exactly Biofrontera will actually make profits, even if the latest figures show a slight upswing. ksta.de has previously highlighted the challenges faced by companies in the pharmaceutical industry, particularly in times of economic uncertainty.
The developments surrounding Biofrontera show how dynamic and challenging the healthcare market is. The coming months will be crucial to see whether the new strategy can work and the company finds its course in the right direction.