Biofrontera Inc. (BFRI) Restructures Supply Agreement with Biofrontera AG

February 20, 2024 8:13 AM EST

Biofrontera Inc. (NASDAQ: BFRI) today announced the restructuring of agreements between the Company and its former parent company Biofrontera AG. With immediate effect, the transfer price of Ameluz will be reduced from 50% to 25% for all purchases in 2024 and 2025.

Starting on January 1, 2026, until 2032 there will be step-wise increases in the transfer price from 25% to 35% for sales related to actinic keratosis and, if approved by the FDA, basal cell carcinoma and squamous cell carcinoma. The transfer price for sales related to acne, another indication currently in development, will remain at 25% indefinitely. The transfer price covers the cost of goods, royalties on sales, and services including all regulatory efforts, agency fees, pharmacovigilance, and patent administration.

Additionally, effective June 1, the Company will take control of all clinical trials with Ameluz� in the US, allowing for more effective cost management and direct oversight of trial efficiency. The reduced LSA transfer price will allow the Company to finance such R&D activities and continue our commercial growth trajectory.

"This amendment provides significant value in both the short and long term. In the short term, we will be paying half of what we had paid in the past for product. In the long term, controlling US clinical trials will enable us to better manage costs and ensure efficiency, which we believe will lead to new indications in the label and increased revenue sooner," stated Hermann Luebbert, Chief Executive Officer and Chairman of Biofrontera Inc.

"We believe that the renegotiated terms along with the capital committed in our simultaneous financing accelerate and could be sufficient for the company achieving profitability in 2025. This will be further supported by the potential label change of Ameluz for the use of up to three tubes per treatment currently under review by the FDA with a user fee goal of October 4, 2024" he continued.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

For further information, please see the Company's current report on Form 8-K to be filed with the SEC.

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