Release Date: August 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Biofrontera Inc (BFRI, Financial) achieved a 34% increase in sales for the second quarter of 2024 compared to the same period in 2023.
- The company successfully reduced total operating expenses from $14.5 million in Q2 2023 to $12.9 million in Q2 2024.
- Biofrontera Inc (BFRI) strengthened its balance sheet by paying down all outstanding debt in the second quarter.
- The launch of the FDA-approved RhodoLED XL lamp began in June, with optimistic expectations for future sales growth.
- The renegotiated license and supply agreement is expected to significantly reduce the cost of Ameluz, enhancing profitability in future quarters.
Negative Points
- Despite improvements, Biofrontera Inc (BFRI) reported a net loss of $257,000 for the second quarter of 2024.
- The company faced reimbursement challenges due to a healthcare cybersecurity event, impacting sales in the first quarter.
- Cost of revenues increased to $4.3 million in Q2 2024 from $2.9 million in Q2 2023, driven by higher sales volume.
- The benefits of the renegotiated license and supply agreement have not yet been realized, with increased costs expected until the end of the year.
- Biofrontera Inc (BFRI) continues to face challenges in managing R&D expenses, with a projected spend of $2.4 million for the year.
Q & A Highlights
Q: Can you provide the number of each type of lamp placed in the second quarter and so far in the third quarter?
A: In the second quarter, we placed 57 of the original lamps and shipped four of the XL lamps in the last weeks of June. We haven't published any numbers for the third quarter yet. - Hermann Luebbert, CEO
Q: What will be the price increase for Ameluz on October 1?
A: The price increase for Ameluz will be 5%. - Fred Leffler, CFO
Q: Are the timelines for the acne and AK extremity trials still on track for mid-2025 and the second half of 2025, respectively?
A: Yes, the timelines are still on track for the second half of 2025 for both trials. - Fred Leffler, CFO
Q: When will the royalty savings from the renegotiated LSA outweigh the costs of the trials?
A: We will start ordering inventory in the fourth quarter of 2024, and depending on shipments, we expect to see more savings than trial costs either in late Q1 or early Q2 of 2025. - Fred Leffler, CFO
Q: Is there any update on the development of the low-cost portable lamp?
A: We are nearing a first prototype, and after that, we will proceed with formal development according to FDA design control rules. - Hermann Luebbert, CEO
Q: How much of the second quarter sales were a rebound from the change health incident, and how much was organic growth?
A: Most of the rebound occurred in April, with May and June reflecting more normal months. At most, half of the sales could be attributed to the rebound effect. - Hermann Luebbert, CEO
Q: What is the expected R&D expense run rate for the next couple of quarters?
A: We expect to spend about $2.4 million in R&D for the year, with approximately $1 million each quarter, depending on recruitment and other factors. - Fred Leffler, CFO
Q: Will you release data from the basal cell carcinoma trial this year?
A: Yes, we expect to release data from the clinical part of the BCC trial this year and the follow-up part in the first half of next year. - Hermann Luebbert, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
